Audited annual report as at 31 December 2012

KBC Equity Fund

Public open-ended investment company under Belgian law (bevek) with a variable number of units/shares 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 free copy of the simplified prospectus or prospectus has been provided.

TABLE OF CONTENTS

1. General information on the bevek

1.1. Organisation of the bevek

1.2. Management report 1.2.1. Information for the shareholders 1.2.2. General market overview

1.3. Auditor's report

1.4. Aggregate balance sheet

1.5. Aggregate profit and loss account

1.6. Summary of recognition and valuation rules

1.6.1. Summary of the rules 1.6.2. Exchange rates

1. GENERAL INFORMATION ON THE BEVEK

1.1 ORGANIZATION OF THE BEVEK

REGISTERED OFFICE : 2 Havenlaan - B-1080 Brussels, Belgium.

DATE OF INCORPORATION: 21 March 1991

LIFE: Unlimited.

BOARD OF DIRECTORS OF THE BEVEK: Dirk Thiels, Head of Asset Allocation and Strategy Portfolios KBC Asset Management NV Wouter Vanden Eynde, Managing Director KBC Asset Management NV Olivier Morel, Financial Manager CBC Banque SA Theo Peeters, Independent Manager Luc Vanderhaegen, Private Banking & Wealth Management Branch General Manager KBC Bank NV Filip Abraham, Independent Manager

Chairman: Luc Vanderhaegen, Private Banking & Wealth Management Branch General Manager KBC Bank NV Natural persons to whom the executive management of the bevek has been entrusted: Dirk Thiels, Head of Asset Allocation and Strategy Portfolios KBC Asset Management NV Wouter Vanden Eynde, Managing Director KBC Asset Management NV

MANAGEMENT TYPE: Bevek 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 COMPANY: 30 December 1999.

NAMES OF THE DIRECTORS OF THE MANAGEMENT COMPANY: Chairman: D. De Raymaeker Directors: J. Lema, President of the Executive Committee J. Aerts, Independent Director P. Buelens, Managing Director J. Daemen, Non-Executive Director P. Konings, Non-Executive Director J. Verschaeve, Managing Director G. Rammeloo, Managing Director D. Falque, Non-Executive Director K. Mattelaer, Non-Executive Director K.Van Eeckhoutte, Non-Executive Director W. Vanden Eynde, Managing Director C. Sterckx, Managing Director P. Marchand, Managing Director

NAMES AND POSITIONS OF THE NATURAL PERSONS TO WHOM THE EXECUTIVE MANAGEMENT OF

THE MANAGEMENT COMPANY HAS BEEN ENTRUSTED: J. Lema, President of the Executive Committee P. Buelens, Managing Director J. Verschaeve, Managing Director G. Rammeloo, Managing Director W. Vanden Eynde, Managing Director C. Sterckx, Managing Director P. Marchand, Managing Director These persons may also be directors of various beveks.

AUDITOR OF THE MANAGEMENT COMPANY: Ernst & Young Bedrijfsrevisoren BCVBA, represented by Christel Weymeersch, Company Auditor and auditor recognized by the Belgian Financial Services and Markets Authority, De Kleetlaan 2, 1831 Diegem.

STATUS OF THE BEVEK: Bevek with various sub-funds that has opted for investments complying with the conditions of Directive 2009/65/EC and which, as far as its operations and investments are concerned, is governed by the Act of 3 August 2012 on certain forms of collective management of investment portfolios.

FINANCIAL PORTFOLIO MANAGEMENT: In this regard, please see ‘Information concerning the sub-fund’.

FINANCIAL-SERVICES PROVIDERS: The financial services providers in Belgium are: KBC Bank NV, Havenlaan 2, B-1080 Brussels CBC Banque SA, Grote Markt 5, B-1000 Brussels Centea NV, Mechelsesteenweg 180, B-2018 Antwerp

CUSTODIAN: KBC Bank N.V., 2 Havenlaan - B-1080 Brussels, Belgium.

ADMINISTRATION AND ACCOUNTING MANAGEMENT: KBC Asset Management N.V., 2 Havenlaan - B-1080 Brussels, Belgium.

ACCREDITED AUDITOR OF THE BEVEK: Deloitte Bedrijfsrevisoren BV o.v.v.e. CVBA, in the form of a CVBA (co-operative limited liability company), Berkenlaan 8b, B-1831 Diegem, represented by partner Frank Verhaegen, company auditor and auditor recognised by the Belgian Financial Services and Markets Authority.

DISTRIBUTOR: KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

PROMOTER: KBC

LIST OF SUB-FUNDS OF KBC EQUITY FUND

1. America

2. Belgium

3. BRIC

4. Buyback America

5. Buyback Europe

6. Central Europe

7. Commodities & Materials

8. Consumer Durables

9. CSOB Akciovy Fond Dividendovych Firem

10. CSOB BRIC

11. Eastern Europe

12. Euro Cyclicals

13. Euro Finance

14. Euro Non Cyclicals

15. Euro Telecom & Technology

16. Europe

17. Eurozone

18. Fallen Angels

19. Finance

20. Flanders

21. Food & Personal Products

22. Global Leaders

23. Growth by Innovation

24. High Dividend

25. High Dividend Eurozone

26. High Dividend New Markets

27. High Dividend North America

28. Industrials & Infrastructure

29. Japan

30. Latin America

31. Luxury & Tourism

32. Medical Technologies

33. Millennium

34. New Asia

35. New Markets

36. New Shares

37. Oil

38. Pacific

39. Pharma

40. Pharma Growth

41. Quant EMU

42. Quant Europe

43. Quant Global 1

44. Satellites

45. SRI Equity

46. Technology

47. Telecom

48. Turkey

49. US Small Caps

50. Utilities

51. World

SHARE CLASSES The characteristics of the different share classes are given in the prospectus. The following sub-funds have a share class called ‘Classic Shares’:

America

Buyback America

Buyback Europe

Central Europe

Commodities & Materials

Consumer Durables

Eastern Europe

Euro Cyclicals

Euro Finance

Euro Non Cyclicals

Euro Telecom & Technology

Eurozone

Finance

Food & Personal Products

Global Leaders

Growth by Innovation

High Dividend

High Dividend Eurozone

High Dividend New Markets

High Dividend North America

Industrials & Infrastructure

Japan

Luxury & Tourism

Medical Technologies

Millennium

New Asia

New Markets

Oil

Pacific

Pharma

Pharma Growth

Quant EMU

Quant Europe

Quant Global 1

Satellites

SRI Equity

Technology

Telecom

Turkey

US Small Caps The following sub-funds have a share class called ‘Institutional Shares’:

SRI Equity

The following sub-funds have a share class called ‘Institutional B Shares’:

America

Buyback America

Buyback Europe

Central Europe

Commodities & Materials

Consumer Durables

Eastern Europe

Euro Cyclicals

Euro Finance

Euro Non Cyclicals

Euro Telecom & Technology

Eurozone

Finance

Food & Personal Products

Global Leaders

Growth by Innovation

High Dividend

High Dividend Eurozone

High Dividend New Markets

High Dividend North America

Industrials & Infrastructure

Japan

Luxury & Tourism

Medical Technologies

Millennium

New Asia

New Markets

Oil

Pacific

Pharma

Pharma Growth

Quant EMU

Quant Europe

Quant Global 1

Satellites

SRI Equity

Technology

Telecom

Turkey

US Small Caps

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

1.2 MANAGEMENT REPORT

1.2.1 INFORMATION FOR THE SHAREHOLDERS Pursuant to Article 96 of the Companies Code, information is supplied regarding the following: The balance sheet and profit and loss account provide a true and fair view of the performance and

results of the undertaking for collective investment. The ‘General market overview’ section includes a description of the main risks and uncertainties facing the undertaking for collective investment.

No important events took place after the close of the financial year. As regards events that might have a material impact on the development of the undertaking for

collective investment, please refer to the ‘Outlook’ heading in the ‘General market overview’ section.

The undertaking for collective investment does not conduct any research and development. The undertaking for collective investment does not have any branch offices. In establishing and applying the valuation rules, it is assumed that the undertaking for collective

investment will continue to pursue its activities, even if the profit and loss account shows a loss for two consecutive financial years.

All information required by the Companies Code has been included in this report. The risk profile of the undertaking for collective investment specified in the prospectus provides an

overview regarding risk management.

1.2.2 GENERAL MARKET OVERVIEW 1 January – 31 December 2012 Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. The debt crisis in Europe continued to rage unabated. Five euro countries have already needed a bailout from the European emergency fund. Greece twice reached an agreement during the year with its private sector creditors concerning a rescheduling of its bond debts. Spain came into the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. Slower growth or economic slump? Although more jobs have been created than lost in the US since 2010, the rate of employment growth has remained on the low side. Pay also increased very little. Household purchasing power consequently rose to only a limited extent and provided little support for economic growth, which remained extremely lacklustre (+2.1% y-o-y in the first three quarters of 2012). Real GDP in the EMU contracted by an annualised 0.3%. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany played its traditional role as European economic engine to a lesser extent than in the recent past. Greater divergence within Europe resulted primarily in a further decline in unemployment in Germany and an alarmingly rapid rise in unemployment in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. The weak growth in the industrialised Western economies was not without its impact on the export performance in emerging countries. In recent years, however, domestic demand (due to a rapidly growing middle class with a high consumption ratio) and inter-regional trade within Asia have been playing an increasingly important role. The region is better armed to deal with financial crises than it was in the past. Public finances are healthy, the balance of payments is generally neutral (China actually has an astronomical surplus) and the internal savings buffer is high. Asia’s economic development no longer depends on fickle foreign capital. Thanks to the contribution by the New World the growth of world GDP held up in 2012 (estimated at 2-2.5%).

Stemming the euro crisis There have been no significant bankruptcies in the business sector. The solvency and liquidity of non-financial companies have seldom been as strong as they are at present. A new feature of this cycle is that government paper, which had previously been seen as entirely risk-free, also started to be tainted with a degree of credit risk. What started as an isolated problem on the periphery of the euro area developed into an issue concerning the credibility of the monetary union and its institutions. In autumn 2009 – three years ago already – it became clear that Greece's official statistics had painted a highly flattering picture of its public finances; as a result, bond investors lost confidence and many refused to continue to fund Greece. After Greece had elaborated its own bailout programme (April 2010), it rapidly became clear that the EMU had a need for a structured bailout framework. This initially took the form of the Financial Stability Facility (EFSF, May 2010) and from 1 October 2012 the permanent European Stability Mechanism (ESM), a fully-fledged supranational institution with its own legal personality. The Greek debacle and lack of political consensus on a blueprint for a renewed currency union continued to fuel mistrust among bond investors. Ireland (November 2010), Portugal (April 2011), once again Greece (July 2011), Cyprus (June 2012) and Spain (with the bailout fund for the banks in June 2012) had to concede that they were no longer able to raise finance in the market and took shelter under the European umbrella. The support of Europe (and the IMF) is dependent on strict austerity policies, which are periodically reviewed. The Greek government's first, rather draconian, austerity plan was not stringent enough and came up against much political opposition. The period July 2011 – May 2012 was one of complete political chaos. In March 2012 agreement on debt restructuring was concluded with the private bondholders, under which Greece was able to eliminate more than 100 billion euros in debt. In December 2012 the European partners relaxed the interest and repayment terms on bailout fund loans to Greece. As a result of all these operations Greece's debt ratio remained sky-high (190% of GDP at the end of 2012) that the financing burden has become appreciably more realistic and there has been a marked change in bond ownership patterns: over 80% of Greek debt is now held by the public sector (European governments, central banks and the IMF). Speculation concerning the Greek exit from the EMU has dried up. In the course of 2012 the markets have shifted their attention from Greece to Spain. The Spanish government has already drawn on the EFSF for the recapitalisation of its banks. In the meantime other problems are also attracting attention: the recession is deeper than had been thought, the austerity policy has already been revised as many as four times in the course of 2012 and regional finances are seriously dislocated. In a lengthy address on 3 August, Prime Minister Mariano Rajoy once again emphasised the severity of the situation and drew the attention of the Spanish people to their responsibilities, while also not ruling out immediate cooperation with the EFSF. By the end of the period under review, no formal application for aid had, however, been filed. As traditionally faithful investors in government bonds, the European banks, which had seen their capital base eroded in the 2008/09 credit crisis, were oversensitive to the consequences of the euro crisis and the write-downs on their bond portfolios. The euro crisis could therefore easily end up as a systemic crisis. Avoiding this provided the driver for the European Central Bank (ECB) to intervene actively, especially by buying Spanish and Italian government paper. After Draghi took over from Trichet at the ECB, the heavy artillery was brought in. In December 2011 and in February 2012 two LTRO programmes were launched under which banks were able to borrow on extremely favourable conditions for a term of 36 months. Funds totalling 1 000 billion euros were borrowed, to be invested primarily in Spanish and Italian bonds. In September the ECB introduced its bazooka in the form of Outright Monetary Transactions (OMT). The ECB expressed its willingness to buy up troubled government debt with maturities of up to three years for an unlimited period and in unlimited quantities, provided a number of conditions have been met. The most important of these is that the government in question submits a formal request for a bailout under the ESM. For this reason the OMT programme has so far been unable to start up. The financial markets have not been disturbed by this. For them the setting up of the European bazooka was enough in itself to regard the euro crisis as having been definitively averted. At least for the present.

Public finances have gone off the rails not only in the EMU, but also in the UK and the US. The budget debate in the US has become mired in a political impasse. The divisions between Republicans and Democrats are considerable and are ideologically driven. Aware of their inability to work out a policy and fearful that the stalemate could lead to an uncontrolled explosion in debt, the parties have passed automatic spending cuts into legislation to reduce the budget deficit to 3% of GDP over a period of ten years. The concrete measures to this end are damaging the priorities of Democrats and Republicans alike. Untangling this Gordian knot will be the major challenge facing the new Congress, which will be installed 3 January 2013. In extremis the retiring Congress decided on New Year's Day to postpone the date on which the automatic spending cuts come into effect until 1 March. New record for corporate earnings The recovery in corporate earnings as from Q4 2009 was just as impressive as the decline in earnings during the recession. So although the economic recovery in the West may be modest, the same was certainly not true of corporate earnings. After going from negative to positive in the last quarter of 2009, earnings per share of the S&P 500 companies as a whole rose by an average 48% in 2010, by 14% in 2011 and by 3.5% in the first nine months of 2012. The lacklustre economic situation in the West was not an obstacle to a strong increase in turnover. The emerging economies, which are booming, are becoming an increasingly significant market outlet for Western companies. However, the improved earnings were due more to a sharp reduction in (wage) cost pressure than to increased turnover, at least until the first quarter of 2012. Expensive commodities: more than a gauge of the economic recovery The Arab spring and the war in Libya caused the oil price to surge in spring 2011. The price of a barrel of Brent crude stood at 126 USD at the end of April 2011. When the US and Europe reduced their strategic stocks in a joint action in June 2011, the trend was broken but not fundamentally reversed. Tension surrounding Iran's nuclear programme led to upward pressure on prices in early 2012. At the end of December 110 USD was once more being paid for a barrel of crude oil. The steep price rises on most other commodity markets had already come to an end earlier. The prices of many industrial metals and agricultural products peaked around mid-February 2011. This was followed by a correction of 15-20%. This too could be interpreted as a sign of increasing doubts about the economy. Inflation cooled. In the US the annual increase in the consumer price index fell from a peak of 3.9% in September 2011 to 1.8% in November 2012. Inflation in the EMU dipped from 3% to 2.2% in the same period. VAT increases and higher charges for government services in a number of euro-area countries prevented a sharper decline in inflation. A policy of (almost) free money and other unconventional measures The US central bank (the Fed) had already cut its key rate very early on in the crisis. Since December 2008 the rate has been a symbolic 0.25%. The European Central Bank waited considerably longer before cutting interest rates. When Mario Draghi took the helm at the ECB on 1 November 2011, the die was cast in favour of monetary easing. Its key rate is 0.75% at present. A rule of thumb states that it takes about six months before a rate cut has a positive impact on the real economy, and the effects wane after about eighteen months. Therefore, it came as no surprise that the Fed resorted to other measures, intervening directly on the bond markets and buying up large amounts of debt paper in an attempt to keep the long-term rate low, as well. The ECB dragged its feet, and only followed the Fed’s example much later. The intensification of the euro crisis in fact left the ECB no other choice.

Bond markets volatile Increasing doubts about the economy and the ongoing euro crisis have pushed US and German bond rates down since March 2011. This trend was sustained in 2012. On 1 June, the US and German ten-year rates hit lows of 1.45% and 1.15%, respectively. Bond portfolios were restructured en masse. Debt paper issued by under-fire European governments was dumped, in spite of the international guarantees, and replaced by German paper. During the course of 2012 the market segment most in the firing line was that for Spanish government bonds. The Belgian-German rate spread also suffered from the tensions in the euro area at times. The days when Belgium could borrow money at the same terms as Germany are long gone. The high government debt, the problems in the financial sector, the unbalanced financing of federal and regional governmental responsibilities, the lack of political consensus concerning a sustained austerity policy and the centrifugal effect of communal relations in Belgium were reasons enough to make foreign investors wary at times. As a result, the Belgian-German rate spread peaked at 365 basis points on 25 November 2011. In 2012 the storm eased, particularly in the euro area. At the end of the period under review bond investors were satisfied with a premium of 45 basis points for the Belgian risk. Consolidation of the stock-market rally The initial phase of the economic recovery went hand in hand with a fine stock-market rally, resulting in the S&P 500 being 75% higher at the end of April 2010 than its low point on 9 March 2009. Since then, the equity markets have struggled to find fresh impetus. The euro crisis and fear that the European banking sector would collapse naturally continued to cast a dark cloud over the market. On top of this, the stock markets were affected by vacillating sentiment about the economic situation, and the same is true of 2012. In the first three months the markets were buoyed up by relative economic optimism. After the gains slackened in April and May, a fine rally occurred from early June onwards, thereby negating the gloomier economic signals. The MSCI All Countries (the broadest global index) was up 14.5% in euros on 31 December compared to year-end 2011. Of the traditional markets, Western Europe (MSCI Europe return index up +18.4% over this period) managed to claw back some of the underperformance that had been built up since the start of the euro crisis in autumn 2009. Nevertheless the problems continued to mount in the EMU: they include the Greek debt restructuring, the threat of an extremist separatist party winning the Greek elections, the undercapitalisation of Spanish banks, the referendum in Ireland, and the financial collapse in Cyprus. Apparently the underperformance of European shares over many years has increased the valuation gap with US shares to such an extent that fresh events in the euro crisis have less impact on the stock markets. Wall Street closed the year substantially higher on balance (S&P500: +13.4%, Dow Jones: +7.3%), while European investors also benefited from a small increase in the value of the dollar (return MSCI USA in euros: +13.9%). The BEL 20 rose by +18.8%, more or less in line with the performance of other European markets. The Belgian bank shares KBC and Ageas recorded the strongest performance. Solvay and AB InBev, which has taken over the Mexican market leader Modelo, were also once again star performers. D’Ieteren, Mobistar and especially Delhaize, which is grappling with structural problems in its two main markets, were the main disappointments during the period under review. The return on the Japanese stock exchange (+6.1%) was positive but hardly convincing within a global perspective. Over the past years (and indeed decades) the Japanese market has lost much of its attraction. Domestic investors are sceptical about the country’s economic and political stability. Foreign investors, who previously capitalised on growth in Asia via the Tokyo stock exchange, now have better (direct) alternatives. The Asian emerging markets (+20.4%) lagged behind well into 2011, but were able to regain ground as from early 2012. Investors were worried about rising inflation and the tightening of monetary policy. Developments in recent months have proved that to be unjustified. Stock-market valuations remain favourable, especially given the high growth forecasts, sound macroeconomic balance and a banking sector that was barely – if at all – affected by the credit crisis.

Latin America (+6.8%) was also affected in the early part of 2011 by fears of overheating. The link to the commodity markets is always at the fore. Eastern Europe (+16.1%) was a divided region. The Russian stock market excelled until mid-2011, owing to the increase in oil prices. This later changed when oil prices slipped, which had an immediate effect on the valuation of oil companies and an indirect effect by way of a higher premium for the 'Russia' risk because of the resultant fall in government revenue. There were major differences in the returns for the various sectors. The best performing sectors included Financials, Pharmaceuticals and Consumer Discretionary. The worst performers included Energy, Utilities and Telecommunication Services. The outperformance of the Banks is no doubt associated with the quantitative easing programmes undertaken by the central banks. That entails the Fed’s QE3 and, more especially, the announcement of OMT by the ECB, which eased the pressure of the euro crisis. Pharmaceuticals had been shunned for a long time due to a lack of product innovation, patent expiry and the reforms to healthcare insurance in the US. In recent months investors began to focus on the sector’s response to these challenges: restructuring operations and the sell-off of non-strategic divisions. Media put in a very strong performance. The advertising markets emerged from a deep trough thanks to the Olympic Games and the presidential elections in the US. Other significant trends are the increasing popularity of e-books and the ongoing breakthrough of digital television. The oil companies suffered from the vagaries of the oil market, the political instability in the Middle East and frequent accidents. The consequences of the Fukushima nuclear disaster continued to cast a shadow throughout the world over the future of nuclear power plants. The anticipated strong growth in mobile data traffic necessitates further investments in network capacity, and it is uncertain whether the proposed budgets of the telecom operators will be sufficient. Outlook The US and European barometers measuring confidence among business leaders peaked in spring 2011 at record levels, but have slipped over the past 18 months. In the US they have ended up in the twilight zone between recession and expansion. In Europe they are below freezing-point. We are expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as jobs growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. In Europe the budgetary plans, the banks' tighter lending policy and the high level of uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could still see a further contraction in European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. The foundations for more sustainable growth in 2013 and beyond have been laid in recent years. US households have trimmed back their debt level significantly, the savings rate has already increased considerably and loan servicing (instalments and interest payments combined) now accounts for only 10% of household budgets (the lowest level in fifteen years – it was at 14% three years ago). Households are gradually moving towards a position where they can spend more of their money on consumption. The explosive growth in earnings between 2009 and 2012 bolstered companies’ already substantial cash positions. Investments were scaled back considerably during the crisis, with the foundations being laid for a catch-up process. After much squabbling between the Democrats and Republicans a compromise was after all reached on New Year's Day concerning the most urgent budgetary issues. The agreement creates certainty as to households’ tax position, while the budget deficit is being reduced sharply by a mix of tax increases and spending cuts. The agreement is however insufficient to restore US federal finances to sound health. Further measures are in the offing and a fresh programme of cuts may be expected as early as spring 2013. While that may be regarded as certain, how far the cuts go, what form they take and over what timeframe they will be spread out will need to become clear in the coming months. Lastly, the Fed is making unprecedented cash injections with its programme for purchasing government bonds and other debt paper. In doing so it wants to avert the risk that the banks will focus unduly on their solvency by insisting on overly strict lending conditions and so undermine economic growth. These cash injections will either find their way into the real economy or generate inflationary expectations. In any case they will keep long rates low and banish any fears of deflation.

Economic growth in Europe will in any event remain below par. There is a greater need for budgetary reform in Europe than in the US, monetary policy in Europe is less aggressive, and banks' lending policy more restrictive. The euro crisis has led the European banks to adopt a tough stance on lending. In contrast, real wage rises (however limited) will be somewhat higher in Europe than in the US. Today’s world is one of two-speed economies. The mature industrialised economies (US, Europe, Japan) still find themselves in a low-growth environment, with no underlying inflationary pressure, persistently low interest rates and runaway public finances. The picture in the 'new world' is altogether different. The strong economic growth has already created inflationary pressure in Asia. As a result, monetary policy in the region will need to be more cautious, or even restrictive (as in 2011) rather than accommodating (as at present). Monetary policy in China and elsewhere in Asia is therefore primed for adjustment and geared to preventing asset-price inflation. This implies not only adjusting interest rates but also active intervention on the credit and foreign exchange markets. This cautious policy is beginning to bear fruit. In China, the rate of increase in the money supply has already slowed considerably, to match the rate of nominal GDP growth. Inflation has fallen from 6.5% in September 2011 to 2.1% in November 2012. The risk of overheating therefore appears under control. In a year in which there will be a change in leadership of the Chinese Communist Party will be installed, little will be left to chance and economic growth will be barely lower than in previous years. One of the major challenges for this decade will be the further development of consumption in China and the rest of Asia. That could help bring about a more balanced economic world order: it will not only reduce the region’s dependence on exports but, at least as importantly, will have an effect on international capital flows. More consumption in China will mean lower savings and higher imports, including from the US. That will help the West to ‘grow out’ of its debt problems. Time is of the essence for the euro area. Everyone knows that the EMU is not a perfect monetary union. In its twelve-year history, little has been done to improve its internal operation. National autonomy was off-limits. The crisis brought the realisation that economic governance, as it is now called in Eurospeak, needs to be tackled as a matter of urgency. In concrete terms, this involves measures such as supranational supervision of banks, strict monitoring and sanctioning of budgetary policy, monitoring of pay policy and harmonising European taxation. In the coming months the organisation of the ESM (European Stability Mechanism, which came into operation from 1 October 2012) the installation of the pan-European banking supervision within the ECB (to be in place by 1 March 2014) and the implementation of the Fiscal Stability Treaty (in force since 1 January 2013) will continue to demand considerable energy and diplomatic dexterity. Work on a new architecture for the EMU cannot be postponed, even though the European leaders are having to turn their attention from one emergency to another, which is not conducive to a calm climate for negotiations. The capital base of banks will need to be strengthened further to ensure the stability of the financial system, so that there is a sufficient buffer to offset reserves and unforeseen write-downs. That will be just as important in 2013 – and probably after that too – as it was in 2011 or 2012. All the measures required to achieve this are being taken. Examples include the almost 2 000 billion euros that were set aside in the space of two years in order to ensure the smooth funding of European governments, the introduction of stress tests to establish whether the banks have sufficient capital to cope with a new and serious crisis, the gradual introduction of new and/or stricter capital requirements under Basel III and making the reserves of the ESM available for direct loans to ailing European banks. Maintaining a (virtually) zero money market rate also fits with this. There is no urgent macroeconomic reason to adopt a more restrictive policy so long as the economic situation in the West remains weak and there is no sign of any real inflationary pressure.

The central banks are conducting a policy of low interest rates and have totally given up their resistance towards quantitative easing measures. They are intervening directly on the capital markets on a large scale. By buying bonds and other debt instruments, they are having a direct influence on the bond yield in certain market segments, ensuring secondary trading (for instance, in paper issued by governments in which the market could lose confidence) and flooding the financial system with cash. The ECB, too, is now firmly set on this path. Concern about inflation has given way totally to worries about the economic situation and stemming the euro crisis. The ECB is probably still striving for a 'normal' short rate of 2% for the euro area, but that has now become a very long-term objective and is totally ruled out in the short term. It is more likely to cut than increase the key rate in the coming months. The first rate hike is not expected until the second half of 2014 at the soonest. In our opinion, the central banks in the US, the UK and Japan will wait even longer before raising their key rates. The US Federal Reserve has already officially postponed the earliest date for a rate hike to mid-2015. The bond yield may have bottomed out, at least as regards issues of German Bunds or US Treasuries. It would be logical for yields to increase again from the current record lows, on the back of an improved economic environment (or an ongoing reduction in the downside risks to growth). As a result, the market might, in the coming months, start to anticipate tighter monetary policy in 2014 or 2015. A number of unconventional measures will first be withdrawn in the US; only after that can the market begin to anticipate a normalisation of the key rate. Fears of a total derailment of the budget in the US and/or inflation due to the unorthodox policy in the recent past could push up the risk premium. This interest-rate increase need not, however, be very big. The measures taken by the central banks are also keeping the short end of the yield curve artificially low. Nor will they hesitate to intervene actively in the market segments where yields threaten to head too rapidly in the wrong direction. The default risk premium in the corporate bond market has already come down steeply. It remains relatively high, both by historical standards and considering that most companies have a healthy financial structure. There is therefore still some potential for a narrowing of spreads. Rate spreads in the euro area will probably remain high for a long time yet, and will certainly remain volatile, due to the many problems that still have to be solved. Thanks to the continued strong growth in the emerging markets, the global economy could post growth of 2–2.5% in 2012 and 2.5–3% in 2013. This is one of the reasons why corporate earnings could continue to grow in the coming quarters at a rate of 5–10%. It seems paradoxical that companies have emerged as the winners from the 2008/09 crisis. They are now reaping the benefits of the considerable restructuring measures pushed through during the recession. Cost controls go beyond (one-off and in some cases spectacular) restructuring measures and have now become an integral part of business culture. The recession of 2008/09 caused companies to be even more aware of risks (i.e. money, and hence costs). Investment projects are subject to a more thorough profitability study. A combination of debt reduction and low interest rates has resulted in a steep drop in financial charges. Globalisation (pressure of relocation) and ongoing high unemployment have made employees powerless to demand high pay increases. Maintaining purchasing power is now about all that is on offer. There is no question of real wage rises. In brief, every cent increase in revenue goes (almost) entirely to the capital factor. The money market rate won’t increase rapidly and bond yields are close to historical lows. Everything seems to point to shares being the most attractive investment option for the months ahead. The lack of alternatives is not, of course, sufficient reason to increase the market valuation. For that to happen, investors will need to be more predisposed to taking risk. The present valuation prices in very gloomy scenarios. Based on forecast earnings for 2013, the price-earnings ratio is 13.5 for the US S&P 500 index and 11.4 for the MSCI Europe. That is 25% and 30% respectively lower than the historical average. Equities are certainly dirt-cheap compared with bonds. The earnings yield – the inverse of the price/earnings ratio – is currently 8.7% for the MSCI Europe, an unprecedented premium of some 740 basis points above German bond yields. Edited to 4 January 2013.

1.3 AUDITOR’S REPORT

KBC Equity Fund NV Undertaking for collective investment in transferable securities under Belgian law

Statutory auditor's report for the year ended 31 December 2012 to the shareholders’ meeting

To the shareholders

As required by law and the company’s articles of association, we are pleased to report to you on the audit assignment which you have entrusted to us. This report includes our opinion on the financial statements together with the required additional comments.

Unqualified audit opinion on the financial statements

We have audited the financial statements of KBC Equity Fund NV for the year ended 31 December 2012, prepared in accordance with the accounting principles applicable in Belgium, which show a total net asset value of 5.018.937.648,53 EUR and a profit for the year of 482.568.162,47 EUR. An overview of the total net asset value and result for each compartment is given in the following table:

Name Compartment Currency Total net asset value Result

Belgium EUR 36.137.904,49 8.699.953,17

World EUR 83.354.531,98 11.593.274,57

Europe EUR 96.616.430,95 11.657.716,90

America USD 405.778.341,08 28.937.228,97

Japan JPY 778.791.718,00 118.880.401,00

New Markets EUR 82.469.472,46 10.571.648,94

New Asia EUR 235.229.370,36 35.436.375,75

Latin America EUR 42.118.031,75 1.578.169,27

Eastern Europe EUR 57.048.893,24 14.036.081,02

Technology USD 447.977.748,30 12.125.921,67

Flanders EUR 21.204.926,27 5.561.965,77

Pharma EUR 214.961.290,23 22.991.477,43

Finance EUR 313.581.664,26 47.312.505,74

Telecom EUR 77.593.118,68 3.789.278,00

Growth By Innovation EUR 64.736.622,53 4.227.298,72

Buyback America USD 227.191.670,82 10.937.158,01

US Small Caps USD 18.362.058,67 2.864.377,30

Utilities EUR 20.271.755,08 136.379,72

Food & Personal Products EUR 146.183.954,54 16.559.674,91

New Shares EUR 16.421.422,63 2.184.938,73

Medical Technologies USD 16.223.351,68 2.029.296,47

Fallen Angels EUR 12.048.727,67 1.560.795,34

Commodities & Materials EUR 98.679.069,61 -892.932,40

Luxury & Tourism EUR 11.863.216,19 2.780.772,27

Millennium EUR 102.054.245,65 4.813.559,44

Consumer Durables EUR 35.028.703,05 4.259.108,71

Euro Cyclicals EUR 7.555.205,52 1.091.289,95

Euro Telecom & Technology EUR 24.308.244,90 1.616.811,69

Euro Finance EUR 22.302.381,48 5.835.631,67

Buyback Europe EUR 87.441.847,74 13.032.885,30

Global Leaders EUR 47.814.222,17 9.075.464,48

Oil EUR 90.890.090,56 -3.611.015,82

Eurozone EUR 499.064.897,28 52.679.405,12

Central Europe EUR 27.017.503,09 6.851.797,86

High Dividend North America USD 244.983.088,76 22.088.723,06

Pharma Growth EUR 27.284.134,80 3.583.439,40

Quant Global 1 EUR 7.108.923,45 1.098.625,17

High Dividend EUR 331.047.463,27 18.827.929,32

Pacific EUR 84.659.763,70 2.127.234,05

Turkey TRY 26.837.024,51 13.161.005,52

BRIC EUR 63.172.577,39 5.205.810,77

High Dividend Eurozone EUR 49.102.772,42 5.081.157,45

Quant Europe EUR 47.744.281,83 5.832.744,28

High Dividend New Markets EUR 213.636.044,41 18.563.872,40

CSOB BRIC CZK 435.601.850,28 28.612.660,68

Satellites EUR 50.409.447,18 6.569.751,32

Quant EMU EUR 399.220.234,71 46.647.414,99

Euro Non Cyclicals EUR 3.411.591,05 435.306,21

Industrials & Infrastructure EUR 69.210.139,78 2.520.195,05

SRI Equity EUR 24.357.760,60 2.872.636,42 CSOB Akciovy Fond Dividendovych Firem CZK 176.560.730,96 2.196.107,22

The board of directors of the company is responsible for the preparation of the financial statements. This responsibility includes among other things: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with legal requirements and auditing standards applicable in Belgium, as issued by the “Institut des Reviseurs d’Entreprises/Instituut der Bedrijfsrevisoren”. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

In accordance with these standards, we have performed procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we have considered internal control relevant to the company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. We have assessed the basis of the accounting policies used, the reasonableness of accounting estimates made by the company and the presentation of the financial statements, taken as a whole.

Finally, the board of directors and responsible officers of the company have replied to all our requests for explanations and information. We believe that the audit evidence we have obtained provides a reasonable basis for our opinion.

In our opinion, the financial statements as of 31 December 2012 give a true and fair view of the company’s assets, liabilities, financial position and results in accordance with the accounting principles applicable in Belgium.

Additional comments

The preparation and the assessment of the information that should be included in the directors’ report and the company’s compliance with the requirements of the Companies Code and its articles of association are the responsibility of the board of directors.

Our responsibility is to include in our report the following additional comments which do not change the scope of our audit opinion on the financial statements:

The directors’ report includes the information required by law and is in agreement with the financial statements. However, we are unable to express an opinion on the description of the principal risks and uncertainties confronting the company, or on the status, future evolution, or significant influence of certain factors on its future development. We can, nevertheless, confirm that the information given is not in obvious contradiction with any information obtained in the context of our appointment.

Without prejudice to certain formal aspects of minor importance, the accounting records are maintained in accordance with the legal and regulatory requirements applicable in Belgium.

No transactions have been undertaken or decisions taken in violation of the company’s articles or the Companies Code such as we would be obliged to report to you. The appropriation of the results proposed to the general meeting is in accordance with the requirements of the law and the company’s articles.

Diegem, 6 March 2013 The statutory auditor

DELOITTE Bedrijfsrevisoren / Reviseurs d’Entreprises BV o.v.v.e. CVBA / SC s.f.d. SCRL Represented by Frank Verhaegen

1.4 AGGREGATE BALANCE SHEET (IN EUR)

Balance sheet layout 31/12/2012 (in the currency of the bevek)

31/12/2011 (in the currency of the bevek)

TOTAL NET ASSETS 5.018.937.648,53 2.882.691.406,39

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 10.697.447,71 10.215.699,09 a} Collateral received in the form of bonds 115.963.929,27 86.456.696,25 C. Shares and similar instruments a) Shares 4.731.536.189,90 2.697.994.076,00 Of which securities lent 102.415.394,24 95.464.199,40 b) Closed-end undertakings for collective

investment 121.837,50 3.173.420,30

D. Other securities 410.452,44 144.218,23 E. Open-end undertakings for collective investment 164.077.095,41 148.831.047,90 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -38.695,86 -76.116,88 m) Financial indices Futures and forward contracts (+/-) -580.238,37 71.505,61 n) Derivative financial instruments Swap contracts (+/-) -74.016,00 3.131.760,00

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 13.206.129,13 11.104.541,72 b) Tax assets 1.716.060,03 1.487.020,96 c) Collateral 3.848.027,84 3.216.727,55 B. Payables a) Accounts payable (-) -13.093.023,76 -14.167.370,32 c) Borrowings (-) -5.928.535,07 -4.687.242,44 d) Collateral (-) -115.963.929,27 -86.456.696,25

V. Deposits and cash at bank and in hand A. Demand balances at banks 114.666.774,39 22.220.864,47

VI. Accruals and deferrals A. Expense to be carried forward 136.571,08 B. Accrued income 4.891.355,71 4.778.005,13 C. Accrued expense (-) -6.519.212,18 -4.883.322,03

TOTAL SHAREHOLDERS' EQUITY 5.018.937.648,53 2.882.691.406,39

A. Capital 3.739.655.678,05 2.064.267.427,65

B. Income equalization -1.062.917,07 -22.490.748,07

C. Profit(Loss) carried forward 797.776.725,06 1.339.153.804,96

D. Result for the period 482.568.162,47 -498.239.078,17

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 115.963.929,27 86.456.696,25

I.A.B Cash at bank and in hand/deposits 3.848.027,84 3.216.727,55

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 69.258.586,17 46.793.715,93

III.B Written futures and forward contracts -265.473,30 -4.408.565,91

IV Notional amounts of swap contracts (+) 29.000.000,00 15.600.000,00

IX Financial instruments lent 102.415.394,24 95.464.199,40

1.5 AGGREGATE PROFIT AND LOSS ACCOUNT (IN EUR)

Income Statement 31/12/2012 (in the currency of the bevek)

31/12/2011 (in the currency of the bevek)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -1.686.639,42 33.396,19 b) Other debt instruments b1 With embedded derivative financial

instruments 35.367,36

C. Shares and similar instruments a) Shares 442.918.219,03 -482.698.380,89 b) Closed-end undertakings for collective

investment 87.421,53 84.273,91

D. Other securities -313.636,60 -1.561.340,70 E. Open-end undertakings for collective investment 19.278.108,91 -28.002.759,00 F. Derivative financial instruments a) Bonds Futures and forward contracts 987.757,71 l) Financial indices Option contracts 66.448,38 Futures and forward contracts 901.521,44 -7.381.569,19 m) Derivative financial instruments Swap contracts (+/-) -1.753.220,69 2.676.311,04 G. Receivables, deposits, cash at bank and in hand

and payables -0,04 -1,06

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts 37.611,60 -28.965,47 Swap contracts (+/-) -0,78 b) Other foreign exchange positions and

transactions -30.064.810,63 -6.092.171,93

II. Investment income and expenses A. Dividends 119.437.956,70 93.740.855,74 B. Interests a) Securities and money market instruments 5.268.825,91 2.949.549,12 b) Cash at bank and in hand and deposits 349.756,86 478.814,76 c) Collateral (+/-) -3.835,64 C. Interest on borrowings (-) -153.661,50 -297.448,12

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

14.794.529,70 1.235.940,16

B. Other 2.172.997,05

IV. Operating expenses A. Investment transaction and delivery costs (-) -14.865.543,97 -12.095.566,15 B. Financial expenses (-) -58.141,19 -312.493,70 C. Custodian's fee (-) -2.283.399,64 -3.409.135,19 D. Manager's fee (-) a) Financial management -60.619.495,01 -50.009.267,58 b) Administration and accounting management -4.516.749,43 -3.658.129,48 E. Administrative expenses (-) -10.165,76 -9.515,40 F. Formation and organisation expenses (-) -363.586,04 -1.610.996,58 G. Remuneration, social security charges and

pension -344,80 -869,56

H. Services and sundry goods (-) -737.624,02 -867.669,24 J. Taxes -1.363.690,82 -1.376.821,53 K. Other expenses (-) -2.769.284,92 -2.229.647,06

Income and expenditure for the period Subtotal II + III + IV 52.109.382,06 24.696.761,58

V. Profit (loss) on ordinary activities before tax 482.568.162,47 -498.239.078,17

VII. Result for the period 482.568.162,47 -498.239.078,17

Appropriation Account 31/12/2012 (in the currency of the bevek)

31/12/2011 (in the currency of the bevek)

I. Profit to be appropriated 1.279.281.970,46 818.423.978,74 Profit (loss) brought forward from the previous

financial year 797.776.725,06 1.339.153.804,96

Profit for the period available for appropriation 482.568.162,47 -498.239.078,17 Income on the creation of shares (income on the

cancellation of shares) -1.062.917,07 -22.490.748,07

II. (Appropriations to) Deductions from capital -1.276.705.394,68 21.049.689,40

III. Profit (loss) to be carried forward 848.448.894,69

IV. (Dividends to be paid out) -2.576.575,79 -2.696.054,97

1.6 SUMMARY OF RECOGNITION AND VALUATION RULES

1.6.1 SUMMARY OF THE RULES Summary of the valuation rules pursuant to the Royal Decree of 10 November 2006 on the accounting, annual accounts 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 profit and loss account.

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

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

o Assets that have an active market which functions through third-party financial institutions that guarantee 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 supply bid prices (e.g., JP Morgan, iBoxx, MSCI, etc.), the mid-prices are used to measure debt instruments, as provided for in the Notes to the aforementioned Royal Decree. The method to correct these mid-prices and generate the bid price is not used, as it is not reliable enough and could result in major fluctuations.

o Securities whose last known price is not representative and securities that are not admitted to official listing or admitted to another organised market are valued as follows: When measuring these securities at fair value, use is made of the current fair value

of similar assets for which there is an active market, provided this fair value is adjusted to take account of the differences between the assets concerned.

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

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

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

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

Liquid assets, including assets on demand at credit institutions, obligations on current account vis-à-vis credit institutions, amounts payable and receivable in the short term that are not represented by negotiable securities or money market instruments (other than vis-à-vis credit institutions), tax assets and liabilities, are measured at nominal value. Other amounts receivable in the longer term that are not represented by negotiable securities are measured at fair value. Impairment is applied to assets, amounts to be received and receivables if there is uncertainty that they will be 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 the previous paragraph to ensure that any change in their value, or risks inherent in the asset in question, are taken into account.

The income arising from securities lending is recognised as the lending rate and is included on an accruals basis in the profit and loss account 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 the sub-fund at the last known mid-market exchange rate.

DIFFERENCES A minor difference may appear from time to time between the net asset value as published in the press and the net asset value shown in this report. These are minimal differences in the net asset value calculated that are identified after publication. If these differences reach or exceed a certain tolerance limit, the difference will be compensated. For those buying or selling shares in the bevek and for the bevek itself, this tolerance limit will be a certain percentage of the net asset 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%

Given that a number of securities exchanges were closed on 31 December 2012 and that the sub-funds below invested more than 20% of their assets in securities listed on these exchanges, the asset valuations used in the financial statements of the sub-funds concerned were made on 28 December 2012 instead of 31 December 2012. However, a theoretic net asset value was calculated for these sub-funds as at 31 December 2012 that was not used for entry and exit. Sub-funds concerned:

Belgium

BRIC

Buyback Europe

Central Europe

Commodities & Materials

Consumer Durables

CSOB Akciovy Fond Dividendovych Firem

CSOB BRIC

Eastern Europe

Euro Cyclicals

Euro Finance

Euro Non Cyclicals

Euro Telecom & Technology

Europe

Eurozone

Fallen Angels

Finance

Flanders

Food & Personal Products

Global Leaders

Growth by Innovation

High Dividend

High Dividend Eurozone

High Dividend New Markets

Industrials & Infrastructure

Japan

Latin America

Luxury & Tourism

Medical Technologies

Millennium

New Asia

New Markets

New Shares

Oil

Pacific

Pharma

Pharma Growth

Quant EMU

Quant Europe

Quant Global 1

Satellites

SRI Equity

Technology

Telecom

Utilities

World

1.6.2 EXCHANGE RATES

1 EUR =

31/12/2012 31/12/2011

6,4813 ARS 5,5873 ARS

1,2699 AUD 1,2662 AUD

1,9557 BGN 1,9561 BGN

2,6995 BRL 2,4214 BRL

1,3127 CAD 1,32185 CAD

1,2068 CHF 1,2139 CHF

2.329,61 COP 2.516,46 COP

25,096 CZK 25,503 CZK

7,461 DKK 7,4324 DKK

1,00 EUR 1,00 EUR

0,8111 GBP 0,8353 GBP

10,2187 HKD 10,0822 HKD

7,5482 HRK 7,5196 HRK

291,22 HUF 314,77 HUF

12.706,10 IDR 11.771,00 IDR

4,9191 ILS 4,9638 ILS

72,2352 INR 68,9383 INR

114,00 JPY 99,88 JPY

1.411,45 KRW 1.495,47 KRW

11,1533 MAD 11,1269 MAD

17,1208 MXN 18,1162 MXN

4,0317 MYR 4,1152 MYR

7,3372 NOK 7,7473 NOK

1,5981 NZD 1,6641 NZD

54,1368 PHP 56,9304 PHP

4,0803 PLN 4,4578 PLN

4,4455 RON 4,3255 RON

8,5768 SEK 8,8993 SEK

1,6105 SGD 1,6833 SGD

40,3299 THB 40,9567 THB

2,353 TRY 2,4517 TRY

38,285 TWD 39,3067 TWD

1,3184 USD 1,2982 USD

99.999,00 VEF 99.999,00 VEF

11,1858 ZAR 10,4805 ZAR

SOFT COMMISSIONS The Manager has entered into a Commission Sharing Agreement with one or more brokers for transactions in shares on behalf of one or more sub-funds. This agreement specifically concerns the execution of orders and the delivery of research reports. What the Commission Sharing Agreement entails The Manager can ask the broker to pay invoices on its behalf for a number of goods and services provided. The broker will then pay those invoices up to a certain percentage of the gross commission that it receives from the sub-funds for carrying out transactions (specified below under ‘CSA Credits’). N.B.: Only goods and services that assist the manager in managing the sub-funds in the interest of the bevek can be covered by a Commission Sharing Agreement. Goods and services eligible for a Commission Sharing Agreement: Research and advisory services Portfolio valuation and analysis Performance measurement Market price services Computer hardware associated with specialised computer software or research services Dedicated telephone lines Seminar fees, where the subject matter is of relevance to the provision of investment services Publications, where the subject matter is of relevance to the provision of investment services.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 1,572,717 944,875 60.08%

CSFBSAS 1,089,596 624,565 57.32%

DEUTSCHE 516,178 295,014 57.15%

EQ CSA MACQUARIE 209,339 127,350 60.83%

HSBC 83,786 33,948 40.52%

JP MORGAN 295,187 183,505 62.17%

MERRILL 562,000 336,443 59.87%

MORGAN STANLEY 991,636 594,100 59.91%

NOMURA 1,523,411 871,477 57.21%

SOCGEN 22,912 10,952 47.80%

UBSWDR 1,244,252 737,328 59.26%

WOOD 26,741 6,122 22.89%

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Buyback Europe

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND BUYBACK EUROPE

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 30 June 2000 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 459.08 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED A least 75% of the assets are invested in shares of European companies with a policy of share buy-backs. More specifically, this involves companies whose buy-back policy may be considered as an indicator of a capital gain on the investment in the short or medium term.

RISK CONCENTRATION Shares of European companies with a policy of share buy-backs.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund Buyback Europe invests in European stocks that buy back their own shares. Research has shown that companies that buy back their own shares, for valuation reasons, tend to outperform their peers over a 3-4 year period. The fund therefore adopts a buy and hold strategy for that period. The fund aims at sector and region neutrality, in order to avoid unintended sector/regional bets and is measured against the MSCI Europe Index.

Equity markets moved considerably higher at the start of 2012. The Fed’s announcement that rates will remain low until at least late 2014, record results from Apple and positive US GDP growth numbers were the key support factors for equity markets. It was not all good news however, as major French banks were downgraded and concerns about the Greek ‘private’ debt restructuring continued to prevail. Into February and after a short pause, markets climbed higher again in the second half of the month. Regionally, the euro area markets strongly outperformed with investors becoming convinced that after two years of crisis, the region has succeeded in isolating the Greek question. The risks of severe damage to the European economy as a whole and for the financial sector in particular fell sharply. Towards the end of the first quarter, positive macroeconomic developments, especially in the US, the successful Greek debt restructuring and the liquidity injection by central banks drove equity markets modestly higher in March. Towards the end of the month, investors’ optimism was tempered by worries over the risks for a hard landing in China and the rise in government bond yields throughout the world. The beginning of the second quarter saw a global pullback on equity markets, prompted by a slowdown in Chinese growth to its lowest level since Q2 2009, poor EU and US economic data and confirmation that the UK and Spain had slide back into recession. The European debt crisis flared up again as yields surged on Spanish bonds, the Dutch government resigned and the Presidential election in France lead to much political uncertainty. Euro area concerns escalated in May as Greek exit fears rose after elections in the country produced a stalemate and the country was unable to form a government. Statements from various European officials alluding to the fact that an exit scenario had been discussed sent markets into a tailspin. Sentiment was further hit when periphery yields spiked after Spain partially nationalized Bankia, Spain’s second largest mortgage lender. As the end of the second quarter approached, Equity markets surged on the final trading day of the June after unexpected policy responses from the EU Summit, involving an agreement to use the ESM to recapitalise banks directly and take steps towards banking union soothed market nerves and increased appetite for risk assets. Victory for the pro-EU/Bailout New Democrats in Greece also supported markets. Into the second half of the year main market developments for the quarter saw Central Banks around the world implementing a new round of monetary easing in July to avoid a slide into a fresh recession. The ECB cut each of its key rates by 25 bps, bringing the main refi rate to 0.75% - a record low and the deposit rate to 0%. Later in the month, Draghi’s comments that the “Euro is irreversible” and that the ECB will do whatever it takes to preserve the currency sparked a month-end rally in stocks globally. In the UK, the Bank of England implemented an additional GBP 50 billion of QE while in China, the PBOC cut deposit and lending rates to 3% and 6% respectively. The equity rally ran out of steam in August amid holiday season in Europe and the U.S, with little news or market developments to influence sentiment. In the US, unemployment figures continued to worsen. The Fed’s chief Bernanke hinted that the Fed was willing to provide additional policy stimulus in the near term in order to ‘promote a stronger economic recovery and sustained improvement in labour market conditions’. Overall data releases from China were weak with declining exports, industrial production and manufacturing figures. Global markets had a positive month towards quarter-end buoyed by the ECB decision to allow unlimited purchasing of short-dated bonds (under the Outright Monetary Transactions operation), of countries who have entered fiscal adjustment programmes. Following this, the German court’s decision to back the EU bailout and the announcement from the Fed that it was introducing QE3 boosted investor confidence and lead markets to rally. Into the final quarter of the year and main market developments saw consumer spending, confidence and housing indicators in the U.S remain largely positive, while in Europe the ECB left its main interest rate unchanged at 0.75%. Towards quarter-end the FOMC expanded QE in the US, by adding at additional $45 billion per month of open-ended Treasury security purchases, while the fiscal cliff has been averted by a last minute deal, but with no agreement on the debt ceiling it is likely that this issue will return in the near future. The EU approved the disbursement of the next tranche of Greek aid. The region’s stock markets were buoyed towards the end of the quarter as perceptions grew that the debt crisis had stabilized somewhat. The first half of the year was a relatively positive period for KBC Equity Fund Buyback Europe, with the fund ending the period positively in absolute just lagging slightly the broad index of European stocks. In the first quarter the fund ended in positive territory on an absolute basis and broadly in line compared to the index of European stocks. The Banking sector proved to be the biggest contributor to positive performance lifted by the names such as KBC Groupe and Erste Groupe. The sector that was the biggest detractor to performance over the period was the Energy sector with the fund’s overweight in Total and the fund’s exclusion of Transocean the main reasons for underperformance within the sector. The second quarter was marked with high volatility and a decline in markets globally. While the fund shared this decline it did not lag far behind the index. The negative performance during the quarter was attributed to the Media sector, where much of the underperformance was derived from Mediaset and Television Francaise, significantly down over the period on disappointing Quarter 1 results. Some of the poor performance was offset by the good performance of the Telecommunications sector where the fund’s overweight in Vodafone and underweight in Telefonica played to the advantage of the fund. On an individual stock level, Astrazenica, the largest weight relative to the Benchmark was the best performing stock, while Nokia was a notable underperformer, after announcing in late Q2 that it would be seeking to cut 10,000 jobs worldwide in an attempt to cut costs.

Into the second half of the year and stock selection was the key contributor to positive performance in the third quarter. On a Sector level, the best performing sector was Materials (10% of the fund), largely down to the fund’s overweight position in BASF SE, one of the fund’s larger weighted stocks, which rose from EUR 54.70 to EUR 65.65 in the quarter. This was mainly on the back of analyst upgrades amid rising sales growth forecasts for the chemicals sector. The Banking sector (8% of the fund) performed well within the fund, with positive performance driven by the fund’s overweight in Skandinaviska Enskilda, which rose from SEK44.76 to SEK55 in the quarter after second-quarter profits beat analysts’ estimates. The Automobiles & Components sector (3% of the fund), followed by the Capital Goods sector (7% of the fund) were the main underperformers for the fund in the quarter. Within Automobiles, BMW’s slight underperformance, coupled with the fund’s overweight position versus the benchmark detracted from performance. On a Regional level Rest of Europe, performed the best and contributed most to performance. In the final quarter of the year currency movements were the key contributor to positive performance, while Stock selection was the biggest detractor. On a Sector level, the best performing sector was Materials (8.5% of the fund), largely down to the fund’s overweight position in Koninklijke DSM which rose from EUR 38.80 to EUR 45.79 in the quarter. The Dutch-based company completed a number of strategic acquisitions such as Fortitech and Cargill’s Cultures and Enzymes business in the quarter, news which was taken positively by the markets. The Energy sector (11% of the fund) also performed well within the fund during the quarter, with stock selection a key contributor. The Fund’s underweight in BG Group whose NAV dropped from GBP 12.50 to GBP 10.12 and overweight in Total SA whose NAV rose from EUR 38.60 to EUR 39.01 were the main overriding factors in this. The Pharmaceuticals sector (10% of the fund), followed by the Telecommunications sector (6.5% of the fund) were the main underperformers for the fund in the quarter. Within Pharmaceuticals, underperformance was driven mainly by the fund’s overweight position in H Lundbeck, which declined from DKK107.80 to DKK82.90 after the company reduced its sales and profit forecasts for the next two years. Within Telecommunications, the main detractor was the fund’s overweight in France Telecom for the second quarter in succession, which underperformed the market, declining from EUR9.388.to EUR 8.339 On a Regional level and while the fund does not take any unintended bets between the Eurozone and the Rest of Europe, it was the former that performed the best and contributed most to performance over the quarter. So overall, while markets were very volatile during 2012, the KBC Equity Fund Buyback Europe, the fund performed positively on an absolute basis recording a double digit rise in its NAV. This was in the context of small but positive gains in the first half of the year and a very strong rally in the second half of the year. In relative terms for the year the fund lagged the Benchmark after taking account of costs.

2.1.8 FUTURE POLICY In Europe, while buyback activity in absolute terms is circa one seventh of where it was in 2007, the macro environment is becoming more conducive to buybacks. The current environment is one where there is lots of cash but little confidence. Recent trends suggest that ultra low interest rates available on fixed income assets is fuelling demand for stocks that are returning cash to the investor. High EPS yields and low bond yields, present an opportunity for companies to shift their capital structure as debt capital is significantly cheaper while low interest rates are incentivising corporates to borrow money in the credit markets to buy back their own shares. Furthermore, the continuing struggles of the European economy support the belief that the current environment is not one conducive to M& A or large-scale capex, which is at an 18-year low, in the absence of return-worthy projects, while policy intervention has firmed the belief that liquidity will remain cheap for the foreseeable future. Given this, I would not be surprised to see an uptick in buyback activity for the remainder of the year. In line with the theme, KBC Equity Fund Buyback Europe will continue to invest in a portfolio of European shares that are buying back their own shares with the intention to create shareholder value. We will continue to ensure that the portfolio is diversified, with region and sector allocation in line with the MSCI Europe Index.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 87.441.847,74 84.898.017,65

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 474.456,00 561.667,50 a} Collateral received in the form of bonds 1.422.950,56 1.942.461,81 C. Shares and similar instruments a) Shares 86.516.386,90 83.808.994,91 Of which securities lent 1.299.110,11 2.060.983,80 D. Other securities 12,22 16.374,88 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -754,92 -248,78 m) Financial indices Futures and forward contracts (+/-) -1.382,45 47.714,94

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 26.586,36 7.385.518,28 b) Tax assets 12.671,42 14.636,05 c) Collateral 21.853,39 1.002.246,27 B. Payables a) Accounts payable (-) -92.603,34 -7.391.456,55 d) Collateral (-) -1.422.950,56 -1.942.461,81

V. Deposits and cash at bank and in hand A. Demand balances at banks 553.224,94 -618.956,10

VI. Accruals and deferrals A. Expense to be carried forward 4.813,01 B. Accrued income 55.061,01 193.490,90 C. Accrued expense (-) -123.663,79 -126.777,66

TOTAL SHAREHOLDERS' EQUITY 87.441.847,74 84.898.017,65

A. Capital 70.448.630,09 80.579.222,66

B. Income equalization -128.172,78 -1.370.669,41

C. Profit(Loss) carried forward 4.088.505,13 31.299.342,98

D. Result for the period 13.032.885,30 -25.609.878,58

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 1.422.950,56 1.942.461,81

I.A.B Cash at bank and in hand/deposits 21.853,39 1.002.246,27

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 785.041,60 13.046.300,78

IX Financial instruments lent 1.299.110,11 2.060.983,80

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -87.211,50 636,00 C. Shares and similar instruments a) Shares 9.804.485,92 -30.118.731,51 D. Other securities -38.260,39 4.649,21 F. Derivative financial instruments l) Financial indices Futures and forward contracts 387.560,61 47.714,94 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -506,14 -248,78 b) Other foreign exchange positions and

transactions 1.377.001,12 2.181.432,61

II. Investment income and expenses A. Dividends 2.992.997,23 4.638.790,52 B. Interests a) Securities and money market instruments 174.746,04 118.704,62 b) Cash at bank and in hand and deposits 14.982,92 6.650,99 C. Interest on borrowings (-) -3.579,30 -4.914,43

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

255.988,30 13.077,67

B. Other 8.288,95

IV. Operating expenses A. Investment transaction and delivery costs (-) -345.843,07 -446.324,84 B. Financial expenses (-) -1.262,91 -2.978,79 C. Custodian's fee (-) -72.212,53 -97.344,49 D. Manager's fee (-) a) Financial management Classic Shares -873.258,48 -1.656.770,90 Institutional B Shares -349.541,31 -24.689,93 b) Administration and accounting management -87.958,23 -124.130,51 E. Administrative expenses (-) -962,57 -459,81 F. Formation and organisation expenses (-) -7.059,73 -13.609,84 G. Remuneration, social security charges and

pension -6,67 -28,87

H. Services and sundry goods (-) -15.461,51 -27.453,64 J. Taxes Classic Shares -49.225,81 -70.388,19 Institutional B Shares -3.391,45 9.254,60 K. Other expenses (-) -39.135,24 -51.004,16

Income and expenditure for the period Subtotal II + III + IV 1.589.815,68 2.274.668,95

V. Profit (loss) on ordinary activities before tax 13.032.885,30 -25.609.878,58

VII. Result for the period 13.032.885,30 -25.609.878,58

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 16.993.217,65 4.318.794,99 Profit (loss) brought forward from the previous

financial year 4.088.505,13 31.299.342,98

Profit for the period available for appropriation 13.032.885,30 -25.609.878,58 Income on the creation of shares (income on the

cancellation of shares) -128.172,78 -1.370.669,41

II. (Appropriations to) Deductions from capital -16.801.606,41

III. Profit (loss) to be carried forward 4.088.505,13

IV. (Dividends to be paid out) -191.611,24 -230.289,86

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND BUYBACK EUROPE

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 795.000,00 EUR 59,680 474.456,00 0,55 0,54

Total bonds 474.456,00 0,55 0,54

Shares

Exchange-listed shares

Austria

ERSTE GROUP BANK AG - 36.444,00 EUR 24,025 875.567,10 1,01 1,00

EVN(ENERG.VERS.NIEDEROST) (WIEN) 53.034,00 EUR 11,815 626.596,71 0,72 0,72

Belgium

AGEAS NV - 48.105,00 EUR 22,215 1.068.652,58 1,23 1,22

BEFIMMO - 1.327,00 EUR 48,830 64.797,41 0,07 0,07

BREDERODE - 3.457,00 EUR 23,950 82.795,15 0,10 0,10

CIE BOIS SAUVAGE (BRU) 45,00 EUR 191,000 8.595,00 0,01 0,01

KBC GROUP - 22.541,00 EUR 26,150 589.447,15 0,68 0,67

SOFINA - 12.718,00 EUR 68,500 871.183,00 1,00 1,00

TELENET - 8.002,00 EUR 35,650 285.271,30 0,33 0,33

Bermuda

STOLT-NIELSEN LTD - 3.612,00 NOK 115,000 56.612,88 0,07 0,07

Denmark

D/S NORDEN - 5.008,00 DKK 163,100 109.476,58 0,13 0,13

GN-GREAT NORDIC LTD - 57.153,00 DKK 81,800 626.607,08 0,72 0,72

H. LUNDBECK A/S - 33.354,00 DKK 82,900 370.600,00 0,43 0,42

JYSKE BANK A/S REG 16.641,00 DKK 157,100 350.395,54 0,40 0,40

SJAELSO GRUPPEN A/S - 19.455,00 DKK 2,350 6.127,76 0,01 0,01

SYDBANK A/S - 19.475,00 DKK 99,700 260.240,92 0,30 0,30

TDC AS "B" 1.589,00 DKK 40,040 8.527,48 0,01 0,01

Finland

KEMIRA (HEL) 87.836,00 EUR 11,810 1.037.343,16 1,19 1,19

NOKIA "A" 131.323,00 EUR 2,926 384.251,10 0,44 0,44

YIT OYJ - 56.257,00 EUR 14,780 831.478,46 0,96 0,95

France

ACCOR - 26.557,00 EUR 26,695 708.939,12 0,82 0,81

ANF SA - 10.691,00 EUR 24,200 258.722,20 0,30 0,30

BOIRON SA - 3.015,00 EUR 26,170 78.902,55 0,09 0,09

BOUYGUES - 51.518,00 EUR 22,400 1.154.003,20 1,33 1,32

ETAM DEVELOPPEMENT SA - 1.694,00 EUR 16,730 28.340,62 0,03 0,03

FFP (PAR) 2.886,00 EUR 29,000 83.694,00 0,10 0,10

FRANCE TELECOM - 157.100,00 EUR 8,339 1.310.056,90 1,51 1,50

GDF SUEZ - 116.098,00 EUR 15,575 1.808.226,35 2,08 2,07

GDF SUEZ STRIP VVPR 70,00 EUR 0,001 0,07

HAVAS (PAR) 62.343,00 EUR 4,169 259.907,97 0,30 0,30

L'OREAL - 17.545,00 EUR 104,900 1.840.470,50 2,12 2,11

LAGARDERE S.C.A. - 4.540,00 EUR 25,285 114.793,90 0,13 0,13

NEXITY - 21.233,00 EUR 25,535 542.184,66 0,62 0,62

PUBLICIS GROUPE SA - 6.424,00 EUR 45,250 290.686,00 0,33 0,33

TELEVISION FRANCAISE (TF1) (PAR) 38.681,00 EUR 8,850 342.326,85 0,39 0,39

TOTAL - 76.352,00 EUR 39,010 2.978.491,52 3,42 3,41

Germany

BAYERISCHE MOTOREN WERKE AG - 16.891,00 EUR 72,930 1.231.860,63 1,42 1,41

DAIMLER AG - 31.803,00 EUR 41,320 1.314.099,96 1,51 1,50

DEUTSCHE POSTBANK AG - 37.773,00 EUR 31,800 1.201.181,40 1,38 1,37

DEUTSCHE TELEKOM INT FIN REG 150.093,00 EUR 8,595 1.290.049,34 1,48 1,48

INFINEON TECHNOLOGIES AG - 90.431,00 EUR 6,129 554.251,60 0,64 0,63

KABEL DEUTSCHLAND HOLDING AG - 5.721,00 EUR 56,570 323.636,97 0,37 0,37

MUNCHENER RUCKVERSICHERUNG AG REG 21.960,00 EUR 136,000 2.986.560,00 3,43 3,42

PRINCESS PRIVATE EQUITY HOLDING - 39.024,00 EUR 6,757 263.685,17 0,30 0,30

TELEGATE AG (FRA) 10.718,00 EUR 7,273 77.952,01 0,09 0,09

Gibraltar

BWIN.PARTY DIGITAL ENTERTAINMENT - 88.696,00 GBP 1,112 121.600,24 0,14 0,14

Greece

FOURLIS S.A. REG 12.844,00 EUR 1,970 25.302,68 0,03 0,03

SARANTIS SA - 6.999,00 EUR 4,340 30.375,66 0,04 0,04

TERNA ENERGY SA - 15.302,00 EUR 3,290 50.343,58 0,06 0,06

Ireland

AER LINGUS GROUP PLC - 120.676,00 EUR 1,105 133.346,98 0,15 0,15

FYFFES PLC - 16.928,00 EUR 0,544 9.208,83 0,01 0,01

ICON PLC - 3.777,00 EUR 20,850 78.750,45 0,09 0,09

UNITED DRUG PLC - 133.207,00 GBP 2,754 452.289,58 0,52 0,52

Italy

CREDITO EMILIANO SPA - 199.923,00 EUR 4,132 826.081,84 0,95 0,95

EDITORIALE L'ESPRESSO (MIL) 214.870,00 EUR 0,880 189.085,60 0,22 0,22

FIAT SPA - 98.079,00 EUR 3,790 371.719,41 0,43 0,43

MEDIASET - 307.896,00 EUR 1,556 479.086,18 0,55 0,55

MONDADORI (MIL) 179.290,00 EUR 1,122 201.163,38 0,23 0,23

PIRELLI (MIL) SPA 29.893,00 EUR 8,655 258.723,92 0,30 0,30

SAES GETTERS SPA - 10.022,00 EUR 6,920 69.352,24 0,08 0,08

Jersey/The Channel Islands

BEAZLEY PLC - 242.106,00 GBP 1,769 528.030,47 0,61 0,60

Luxembourg

GAGFAH SA - 55.825,00 EUR 8,861 494.665,33 0,57 0,57

SUBSEA 7 SA - 39.519,00 NOK 132,100 711.505,74 0,82 0,81

Netherlands

BINCK NV - 61.268,00 EUR 6,215 380.780,62 0,44 0,44

KON. AHOLD - 95.592,00 EUR 10,135 968.824,92 1,11 1,11

KONINKLIJKE D.S.M. NV (AMS) 49.989,00 EUR 45,790 2.288.996,31 2,63 2,62

KONINKLIJKE PHILIPS ELECTRONICS N.V. - 67.379,00 EUR 19,895 1.340.505,21 1,54 1,53

TELEGRAAF (HOLDINGMIJ.) - 1.003,00 EUR 7,999 8.023,00 0,01 0,01

Norway

DNB ASA - 120.222,00 NOK 70,400 1.153.522,98 1,33 1,32

ORKLA ASA "A" 74.802,00 NOK 48,500 494.452,52 0,57 0,57

SPAREBANK 1 SMN - 44.117,00 NOK 34,800 209.244,89 0,24 0,24

TELENOR A/S - 19.237,00 NOK 112,200 294.170,99 0,34 0,34

TOMRA SYSTEMS - 22.211,00 NOK 50,250 152.115,62 0,18 0,17

WILH WILHEMSEN HOLDING ASA - 3.849,00 NOK 157,500 82.622,46 0,10 0,09

Portugal

PORTUGAL TELECOM INT FIN - 87.307,00 EUR 3,749 327.313,94 0,38 0,37

Spain

BANESTO BCO ESPANOL DE CREDITO SA - 183.146,00 EUR 3,555 651.084,03 0,75 0,75

BARON DE LEY (MAD) 2.965,00 EUR 44,800 132.832,00 0,15 0,15

CORP FINANCIERA ALBA SA - 15.488,00 EUR 35,310 546.881,28 0,63 0,63

ENCE ENERGIA Y CELULOSA SA (MAD) 285.750,00 EUR 2,130 608.647,50 0,70 0,70

SOLARIA ENERGIA Y MEDIO AMBIENTE SA - 95.643,00 EUR 0,700 66.950,10 0,08 0,08

Sweden

EAST CAPITAL EXPLORER AB - 37.612,00 SEK 49,000 214.880,61 0,25 0,25

FABEGE AB - 76.090,00 SEK 65,750 583.308,17 0,67 0,67

ORESUND INVESTMENT AB - 18.146,00 SEK 102,000 215.802,16 0,25 0,25

SKANDINAVISKA ENSKILDA "A" 333.592,00 SEK 55,250 2.148.931,77 2,47 2,46

SWEDISH MATCH AB - 64.760,00 SEK 218,200 1.647.541,27 1,89 1,88

TELIASONERA AB - 116.210,00 SEK 44,060 596.984,03 0,69 0,68

Switzerland

ADECCO SA CHESEREX REG 26.216,00 CHF 48,040 1.043.600,13 1,20 1,19

BB BIOTECH AG - 8.350,00 CHF 88,500 612.342,56 0,70 0,70

GEORG.FISCHER (NAAM) 3.122,00 CHF 368,000 952.018,56 1,09 1,09

IMPLENIA AG - 8.177,00 CHF 39,900 270.353,25 0,31 0,31

NESTLE AG REG 80.706,00 CHF 59,600 3.985.811,73 4,59 4,56

NOVARTIS AG REG 82.993,00 CHF 57,450 3.950.901,43 4,54 4,52

U.K.

ANITE PLC - 142.853,00 GBP 1,421 250.270,14 0,29 0,29

ARM HOLDG - 66.888,00 GBP 7,680 633.337,25 0,73 0,72

ASTRAZENECA PLC - 87.197,00 GBP 29,095 3.127.847,02 3,60 3,58

BAE SYSTEMS PLC - 474.526,00 GBP 3,369 1.970.999,99 2,27 2,25

BERKELEY GROUP (THE) PLC - 26.428,00 GBP 17,570 572.481,77 0,66 0,66

BILLITON PLC - 132.977,00 GBP 21,295 3.491.240,56 4,01 3,99

BP PLC - 458.339,00 GBP 4,248 2.400.473,52 2,76 2,75

CARNIVAL PLC PLC 8.339,00 GBP 23,580 242.428,33 0,28 0,28

CATLIN GROUP LTD - 138.358,00 GBP 5,035 858.873,79 0,99 0,98

CLS HOLDING PLC - 10.458,00 GBP 7,650 98.636,05 0,11 0,11

COMPASS GROUP - 31.354,00 GBP 7,250 280.257,06 0,32 0,32

CSR PLC - 24.991,00 GBP 3,338 102.847,93 0,12 0,12

DIGNITY PLC - 822,00 GBP 10,900 11.046,48 0,01 0,01

GRIFFIN MINING LTD - 212.633,00 GBP 0,293 76.680,00 0,09 0,09

HALFORDS LTD - 7.700,00 GBP 3,324 31.555,67 0,04 0,04

HOME RETAIL GROUP - 141.537,00 GBP 1,267 221.091,58 0,25 0,25

MAN GROUP PLC - 395.085,00 GBP 0,828 403.073,40 0,46 0,46

MORRISON SUPERMARKETS - 128.789,00 GBP 2,630 417.599,64 0,48 0,48

NEXT PLC - 1.020,00 GBP 37,090 46.642,58 0,05 0,05

NOVAE GROUP PLC - 10.767,00 GBP 3,969 52.683,43 0,06 0,06

REGUS PLC - 354.695,00 GBP 1,094 478.407,51 0,55 0,55

RIGHTMOVE GROUP PLC - 449,00 GBP 14,360 7.949,25 0,01 0,01

ROYAL DUTCH SHELL PLC -A- 81.856,00 EUR 25,975 2.126.209,60 2,44 2,43

ROYAL DUTCH SHELL PLC -B- 51.851,00 GBP 21,750 1.390.407,16 1,60 1,59

SAGE GROUP - 268.300,00 GBP 2,943 973.501,29 1,12 1,11

SIGNET GROUP PLC - 4.645,00 GBP 32,885 188.325,51 0,22 0,22

SONGBIRD ESTATES PLC - 119.468,00 GBP 1,190 175.276,69 0,20 0,20

SPIRENT COMMUNICATIONS PLC - 190.819,00 GBP 1,507 354.536,10 0,41 0,41

TRADING EMISSIONS PLC - 250.532,00 GBP 0,279 86.100,10 0,10 0,10

UNILEVER PLC - 104.918,00 GBP 23,660 3.060.485,61 3,52 3,50

VODAFONE GROUP PLC - 735.270,00 GBP 1,545 1.400.104,20 1,61 1,60

WETHERSPOON PLC - 1.591,00 GBP 5,330 10.454,97 0,01 0,01

WPP GROUP PLC - 27.060,00 GBP 8,880 296.255,46 0,34 0,34

888 HOLDINGS PLC - 109.263,00 GBP 1,193 160.641,26 0,19 0,18

Total shares 86.516.386,90 99,46 98,94

Options and futures

Exchange-listed futures

Belgium

EURO - STOXX 50 MAR 13 9,00 EUR 2.615,000 235.350,00 0,27 0,27

Switzerland

SWISS MKT IX FUTR MAR 13 1,00 CHF 6.750,000 55.933,05 0,06 0,06

U.K.

FTSE 100 ID X FUT MAR 13 3,00 GBP 5.848,000 216.298,85 0,25 0,25

Suspense accounts (futures)

Belgium

EURO - STOXX 50 MAR 13 -235.530,00 EUR 1,000 -235.530,00 -0,27 -0,27

Switzerland

SWISS MKT IX FUTR MAR 13 -68.170,00 CHF 1,000 -56.488,23 -0,07 -0,07

U.K.

FTSE 100 ID X FUT MAR 13 -175.965,00 GBP 1,000 -216.946,12 -0,25 -0,25

Total options and futures -1.382,45 0,00 0,00

Rights

Sweden

EAST CAPITAL EXPLORER AB CP 07/12/12 35.547,00 SEK 0,000 0,04

U.K.

ROYAL DUTCH SHELL PLC CP 14/11/12 36,00 EUR 0,338 12,18

Total rights 12,22

Forward contracts EUR -754,92 0,00

TOTAL SECURITIES PORTFOLIO 86.988.717,75 100,00 99,48

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 1.422.950,56 EUR 1,000 1.422.950,56 1,63

TOTAL RECEIVED COLLATERAL 1.422.950,56 1,63

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CHF 1.420,75 CHF 1,000 1.177,29 0,00

KBC GROUP DKK 31.397,13 DKK 1,000 4.208,17 0,01

KBC GROUP EURO 359.099,25 EUR 1,000 359.099,25 0,41

KBC GROUP GBP 63.822,44 GBP 1,000 78.686,28 0,09

KBC GROUP NOK 37.846,26 NOK 1,000 5.158,13 0,01

KBC GROUP SEK 64.976,35 SEK 1,000 7.575,83 0,01

KBC GROUP USD 5.929,48 USD 1,000 4.497,48 0,01

Total demand accounts 460.402,43 0,53

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 71.084,65 EUR 1,000 71.084,65 0,08

KBC GROUP FUT.REK.CHF 4.653,36 CHF 1,000 3.855,95 0,00

KBC GROUP FUT.REK.GBP 14.504,02 GBP 1,000 17.881,91 0,02

Total managed futures accounts 92.822,51 0,11

TOTAL CASH AT BANK AND IN HAND 553.224,94 0,63

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 26.586,36 EUR 1,000 26.586,36 0,03

KBC GROUP WHT TO BE RECOVERED EUR 12.671,42 EUR 1,000 12.671,42 0,01

Netherlands

KBC CLEARING NV DEKKING CHF 5.063,00 CHF 1,000 4.195,39 0,01

KBC CLEARING NV DEKKING EUR 17.658,00 EUR 1,000 17.658,00 0,02

Total receivables 61.111,17 0,07

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -1.422.950,56 EUR 1,000 -1.422.950,56 -1,63

KBC GROUP EUR PAYABLE -92.603,34 EUR 1,000 -92.603,34 -0,11

Payables -1.515.553,90 -1,73

TOTAL RECEIVABLES AND PAYABLES -1.454.442,73 -1,66

OTHER

Interest receivable EUR 40.760,98 0,05

Accrued interest EUR 14.300,03 0,02

Expenses payable EUR -123.663,79 -0,14

TOTAL OTHER -68.602,78 -0,08

TOTAL NET ASSETS 87.441.847,74 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 0,04 1,19 0,70 1,73 Belgium 0,48 1,70 2,66 3,41 Bermuda 0,18 0,18 0,28 0,07 Switzerland 11,90 13,36 12,84 12,43 Germany 13,80 10,81 12,03 10,63 Denmark 1,03 1,76 2,77 1,99 Spain 2,65 5,52 1,67 2,31 Finland 2,33 1,77 1,85 2,59 France 13,44 12,38 14,13 13,56 U.K. 31,59 34,96 32,61 29,88 Gibraltar 0,00 0,00 0,01 0,14 Greece 0,36 0,15 0,16 0,12 Ireland 0,26 0,94 1,60 1,32 Italy 7,03 1,91 2,16 2,75 Jersey/The Channel Islands 0,10 0,05 0,26 0,61 Luxembourg 0,56 0,41 0,55 1,39 Netherlands 4,97 3,98 2,72 5,73 Norway 2,39 2,04 3,65 2,74 Portugal 1,62 1,01 0,34 0,38 Sweden 5,01 5,88 7,01 6,22 Guernsey The Channel Islands 0,26 0,00 0,00 0,00 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 27,16 27,44 26,06 25,24 Consum(cycl) 13,81 12,72 11,68 14,42 Cons.goods 12,08 13,87 14,10 12,34 Pharma 8,29 10,33 11,38 10,69 Financials 21,14 17,68 18,54 19,99 Technology 3,24 3,44 3,67 4,15 Telecomm. 7,40 8,94 8,71 7,75 Utilities 4,54 3,96 4,09 2,86 Real est. 2,34 1,59 1,75 2,56 Various 0,00 0,03 0,02 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CHF 11,90 15,30 12,90 12,43 DKK 1,04 1,76 2,77 1,98 EUR 48,73 33,45 41,66 46,88 GBP 30,75 40,24 31,75 28,90 NOK 2,57 2,23 3,93 3,61 SEK 5,01 7,01 6,99 6,19 USD 0,00 0,01 0,00 0,01 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND BUYBACK EUROPE

(IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 63.872.018,98 45.593.563,16 109.465.582,14 Sales 68.403.378,86 49.880.259,96 118.283.638,82 Total 1 132.275.397,84 95.473.823,12 227.749.220,96 Subscriptions 45.864.430,21 24.221.398,15 70.085.828,36 Redemptions 51.809.798,13 28.278.100,73 80.087.898,86 Total 2 97.674.228,34 52.499.498,88 150.173.727,22 Monthly average of total assets

91.447.562,40 85.673.905,29 88.501.818,98

Turnover rate 37,84 % 50,16 % 87,65 %

1st half of year 2nd half of year YearPurchases 63.872.018,98 45.593.563,16 109.465.582,14 Sales 68.403.378,86 49.880.259,96 118.283.638,82 Total 1 132.275.397,84 95.473.823,12 227.749.220,96 Subscriptions 45.864.430,21 24.221.398,15 70.085.828,36 Redemptions 51.809.798,13 28.278.100,73 80.087.898,86 Total 2 97.674.228,34 52.499.498,88 150.173.727,22 Monthly average of total assets

89.854.496,47 84.725.216,36 87.210.511,00

Corrected turnover rate 38,51 % 50,72 % 88,95 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR EUR 1.422.950,56 1.422.950,56 N/A 31.12.2012

KBCCLEAR DEKKING CHF CHF 5.063,00 4.195,39 N/A 28.12.2012

KBCCLEAR DEKKING EUR EUR 17.658,00 17.658,00 N/A 28.12.2012

SMI 13/03/2013 CHF 67.500,00 55.933,05 10,00 17.12.2012

KBC AK-VK CHF-EUR 130313-121214 1.21065

CHF 70.000,00 58.004,64 N/A 14.12.2012

EUROSTOX 13/03/2013 EUR 235.350,00 235.350,00 10,00 17.12.2012

FTSE 13/03/2013 GBP 175.440,00 216.298,85 10,00 17.12.2012

KBC AK-VK GBP-EUR 130313-121214 0.8082

GBP 178.000,00 219.455,06 N/A 14.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 252.412,53 2.082,96 246.192,58 6.739,00 198.873,59 25.626,16 224.499,75

2011 - 12 173.370,97 5.415,68 268.261,67 3.917,00 103.982,89 27.124,84 131.107,72

2012 - 12 6.195,86 1.883,00 27.258,72 5.614,65 82.920,03 23.393,19 106.313,22

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 139.458.060,24 932.800,38 131.143.232,19 2.999.883,19

2011 - 12 99.521.715,69 2.513.346,38 137.861.665,01 1.708.390,12

2012 - 12 3.423.894,64 837.635,05 15.286.949,34 2.441.433,63

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 128.621.735,34 585,67 474,05

2011 - 12 64.294.503,60 511,64 408,93

2012 - 12 60.187.258,69 594,44 465,80

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 40.915,00 680,00 40.235,00 40.235,00

2012 - 12 121.517,00 115.939,00 45.813,00 45.813,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 19.913.918,27 337.025,89

2012 - 12 66.303.046,99 63.105.475,20

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 20.603.514,06 512,08

2012 - 12 27.254.589,05 594,91

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0174407016 EUR 15.87% 4.27% -3.76% 0.0489 30/06/2000 1.37%

DIV BE0174406976 EUR 15.84% 4.27% -3.76% 0.0488 30/06/2000 1.36%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228537708 EUR 15.86% 24/11/2011 26.17%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 6.14 EUR net (8.19 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.738% Classic Shares Capitalization: 1.734% Institutional B Shares Capitalization: 1.728% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 24,919 14,867 59.66%

CSFBSAS 26,922 15,669 58.20%

DEUTSCHE 33,507 19,986 59.65%

HSBC 17 9 50.01%

JP MORGAN 15,082 9,427 62.50%

MERRILL 5,770 3,382 58.61%

MORGAN STANLEY 6,284 3,490 55.53%

NOMURA 14,324 8,680 60.59%

UBSWDR 34,766 22,964 66.05%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The Euro Stoxx 50 is a weighted equity index computed by Stoxx Ltd. The dividend is not reinvested. The main purpose of this index is to provide a continuous indication of market trends on the European stock markets. The base value of the index is 1000, calculated on the basis of the underlying prices recorded on 31 December 1991. The Euro Stoxx 50 consists solely of shares from countries participating in the Economic and Monetary Union, with the exception of Luxembourg. On 10 April 1998, the following stock exchanges were included in the index: Austria (Vienna), Belgium (Brussels), Finland (Helsinki), France (Paris), Germany (Frankfurt), Italy (Milan), Ireland (Dublin), the Netherlands (Amsterdam), Portugal (Lisbon) and Spain (Madrid). The index consists of the 50 largest European shares in terms of shares that are freely negotiable, and the shares are accordingly weighted on the basis of this criterion. The Euro Stoxx 50 is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Stoxx Limited has all proprietary rights with repect to the index. In no way Stoxx Limited endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Stoxx Limited disclaims any liability for the issue and offering of the shares of this undertaking for collective investment.

The FTSE 100 is an equity index computed by the Financial Times Ltd. The dividend is not reinvested. It comprises 100 shares. The FTSE 100 serves primarily as a continuous indicator of market trends on the UK stock market. The value of the FTSE 100 is based on the market value of the shares of 100 companies listed on the London Stock Exchange. These are the companies with the biggest market capitalisation, and the shares are weighted accordingly. The base value of the index is 1000, calculated on the basis of the underlying prices recorded on 3 January 1984. The FTSE 100 is published daily in the leading financial newspapers, i.e. The Financial Times and The Wall Street Journal Europe. In Belgium, the index is published in De Tijd and L’Echo. Financial Times Ltd has all proprietary rights with repect to the index. In no way Financial Times Ltd endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Financial Times Ltd disclaims any liability for the issue and offering of the shares of this undertaking for collective investment. The Swiss Market Index is a capitalization-weighted index of the largest and most liquid stocks traded on the Electronic Bourse System. The equities use free float shares in the index calculation. The SMI was developed with a base value of 1500 as of June 30, 1988. The Swiss Market Index is published daily in the leading financial newspapers, i.e. The Financial Times and The Wall Street Journal Europe. In Belgium, the index is published in De Tijd and L’Echo. The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 58.377,10 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

GN-GREAT NORDIC LTD DKK 5.000 81,800 54.818,39

NOKIA CORP -A- EUR 124.112 2,926 363.151,71

PIRELLI E CO EUR 29.000 8,655 250.995,00

SUBSEA 7 SA NOK 35.000 132,100 630.145,01

Total 1.299.110,11

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 120.000 EUR 146.616,48

FRANCE 2004 1,60% 25/07/2015 EUR 33.000 EUR 42.405,07

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 5.000 EUR 5.602,57

FRANCE - 08/14 3.00% 12/07 EUR 191.000 EUR 202.366,79

NEDERLAND 2007 4,50% 15/07/17 EUR 852.000 EUR 1.025.959,66

Total 1.422.950,57 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund BRIC

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND BRIC

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 24 May 2006 Initial subscription price: 1000 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED The sub-fund invests primarily, directly or indirectly, in shares of companies from different sectors in Brazil, Russia, India and China.

RISK CONCENTRATION Shares of Brazilian, Russian, Indian and Chinese companies.

PRIMARILY INVESTMENTS IN ASSETS OTHER THAN SECURITIES OR MONEY MARKET INSTRUMENTS Under the investment policy referred to above, the sub-fund may invest primarily in permitted assets other than securities or money market instruments, more specific units in UCIs.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR The KBC Equity Fund BRIC fund invests directly and indirectly in the following developing economies which make up the BRIC acronym: Brazil, Russia, India and China. The Equity Fund BRIC starts the investment process in these markets by following the MSCI BRIC breakdown: Brazil 29%, Russia 14%, India 15% and China 42%, and then applying any country preferences. The fund finished the year with a positive return but underperformed its benchmark, MSCI BRIC. Over the first half of the 2012, the changing situation in Europe was the primary concern for investors who were in a risk-on, risk-off mode depending primarily on the Eurozone developments. Throughout the first quarter, the situation in Europe continued to improve and markets performed strongly. Investors accepted Greek sovereign debt swap offer and the European Central Bank provided support to troubled European banks. Economists were of opinion that China, the most important trading partner for Brazil and receiver of its commodities-based exports, will experience a slowdown in growth but short of outright recession. Global situation worsened in the second quarter of the year. In France, anti-austerity measures of a newly elected president were in opposition to the so-far dominating view advocated by German Chancellor Angela Merkel and resulted in a widening of an already existing rift in European policy. Investors were concerned that Greece, following local parliamentary elections, may leave with the Eurozone and return to its old currency, the drachma and cause an uncontrolled breakup of the European Monetary Union. Contagion fears spread to another weak link in a European chain – Spain. Its macroeconomic numbers continued to disappoint and Madrid was forced to ask for a bailout as costs of financing in capital markets were too high. Political issues were not the only force behind declines in equities. First half of the year saw a substantial deterioration in macro data globally – not only in Europe that remained in the spotlight, but also in the US and China. As a consequence, markets were very weak and in a risk-off mode, with most risk assets reversing the gains achieved in first months of the year.

At the start of the second half of the year, markets moved considerably upwards although the start of the third quarter brought even more disappointing macroeconomic news. The US growth forecast was downgraded and problems in the Eurozone continued. The equity rally gained momentum towards the end of the summer on anticipation that central banks worldwide, and an American monetary authority in particular, will start a new round of monetary easing. The expectations proved to be true when the US Fed announced QE3 in September, along with the aim of keeping interest rates low until at least the middle of 2015. In the final quarter of the year, markets gained some positive momentum in its final months on the expectation that a political resolution of ‘fiscal cliff’ issue in the United States would be found and cuts in spending and increases in taxes, which would likely prompt the US into recession, would be avoided. Other main news over the period were successful leadership transition in China and elections in Japan. On the economic front in Brazil, economic activity substantially let down in 2012. At the start of the year, market watchers were quite upbeat about prospects for Latin America’s largest economy and expected GDP growth to come in at 3.4% for the full year. However, economic data continued to come in below expectations, the awaited economic recovery failed to materialise and GDP forecasts had to be revised down accordingly. The most recent forecast for 2012 GDP growth is a lacklustre 1%. On a monetary policy front, the interest rate, the Selic, finished year at 7.25%, an all-time historic low, down from 11% at the start of the year. The slowdown in economic activity was recognised early by the Brazilian Central Bank which proved to be very proactive in their monetary response and the interest rate has been decreased by a total of 500 basis points since the summer of 2011. However, interest rate cuts and substantial pro-cyclical fiscal policy promoted by the Brazilian government failed to have a substantial and lasting impact on Brazilian economy, reinforcing the opinion that recent deterioration in economic activity is not short-term, cyclical and driven by global macroeconomic factors and but rather of more structural, domestic and long-term nature. After starting the year strongly, the Russian economic growth decelerated and external risks were rising. Despite the slowdown in economic activity in 2012, the Russian economy was fairly solid. Economic growth decelerated to 2.9 % YoY in the third quarter from 4.8 % YoY in 4Q11 but the GDP growth for the entire year should be between 3.5 % - 4 %, thus slightly lower than the year before (4.3 % in 2011). Growth was mainly driven by consumer activity, service sector expansion and some manufacturing efficiency gains rather than by extractive industries. The inflation rate reached all-time low in April when it was only 3.6 % YoY, mainly due to tariff hikes postponement. However, from July inflation was on the rise as tariffs were raised and food prices soared due to bad harvest. It should end the year around 6.5 %. The unemployment rate decreased to 5.2 % in August and reached the lowest level in modern Russian history. Surprisingly the Russian stock market did not perform as well as expected given the strong economic growth and high average oil prices. International investors were held back given a series of long term negative factors such as high corruption and poor corporate governance as well as strong national protests against Putin’s establishment. The Indian market kicked off the year strongly outperforming the region on the back of the Central Bank signaling that it would follow a monetary easing strategy. However from end February to end May Indian equities pulled back strongly in the face of multiple headwinds including: 1) a distracted Government due to political turmoil, following a series of corruption exposes, 2) poor economic data coupled with stubbornly high inflation limiting the RBI’s ability to ease monetary policy, 3) stubbornly high global crude oil prices, putting added pressure on India’s already strained fiscal position, 4) the proposal to address tax avoidance through the introduction of General Anti Avoidance Rule (GAAR), 5) India's governing National Congress party suffering major setbacks in the five state elections 6) S&P downgrade of India's outlook to "negative” and 7) global risk aversion in the face of an uncertain global macro environment due to slowing growth and the European crisis. The second half of the year kicked off with a major cabinet reshuffle and Pranab Mukherjee was elected as the next President of India and Chidambaram Palaniappan staged a comeback as the Finance Minister. The turning point for the market came in September on the back of unexpected reform measure announced by the government, including diesel price hikes, an increased FDI limit across a number of areas and a number of important cabinet approvals passed to name a few. Rainfall also picked up over the month easing concerns surrounding the impact a deficient monsoon would have on agri-production. This together with positive developments in economic numbers combined to support investor sentiment. The rally gained further traction in the last quarter of 2012 with the government announcing the increase in FII limits for Rupee denominated government and corporate bonds and securing the vote of FDI in multi-brand retail.

China went against the global trend in April, rising sharply and despite falling in May and June, the domestic market ended the first half of the year slightly ahead of international indices. While the volatility globally continued, there was also concern domestically about weakening growth in China over the first half of 2012. Growth was slower than most expected, with the official growth target being lowered to 7.5%. Most domestic activity metrics were weak – industrial production, investment and retail sales. On the positive side, inflation continued to fall, leaving room for policy makers to make changes if needed. While there was some slowdown in employment growth, there was no mass unemployment as was seen in 2008/2009. Following this slowdown, Chinese authorities began to take steps to boost growth. Initially the focus was on increasing investment, with particular focus on water and other environmental areas, utilities, railways and social housing. However at the beginning of June, the People’s Bank of China took the decision to lower lending and deposit rates by 25bps. They also took steps to liberalise the interest rate regime, seen as a significant positive. In September macroeconomic releases from China were showing a turnaround. Industrial production, retail sales and fixed investment all started to show signs of stabilization over the fourth quarter, lessening worries that the Chinese economy was experiencing a hard landing. On the political front, over the quarter, we saw the completion of a successful leadership transition in the country and while it will be 2013 before the leadership takes action on most items, the transition was completed smoothly which was a positive for the market. While the Chinese news was a significant driver of the region over the period, international factors continued to influence sentiment positively.

2.1.8 FUTURE POLICY Looking forward, we believe that 2013 will be a year of sluggish and weak growth for the overall global economy. While global growth is expected to be positive it is not anticipated that it will be much more positive when compared to 2012. Developed markets are being highlighted as the point of weakness with only modest expansion expected. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on global growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to continue their decline in 2013. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. Household incomes and corporate and financial sector rebalancing is expected to continue hindering consumption growth in these regions. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only a short term solution in advance of the debt ceiling debate to follow in February. Inflation is expected to remain contained in developed markets this year allowing monetary policy to focus on growth. In the US, growth is predicted to improve in the second half of the year along with improvement in the housing market and unemployment figures. It would appear that growth in 2013 will emanate from the same source as 2012, with almost 90% of global GDP growth expected to originate from Emerging Markets. Growth is also expected to continue in China where considerable confidence remains, however it is not expected to surpass the growth of 2012.

In relation to the BRIC countries: in Brazil there are some signs that economy is turning the corner as industrial business confidence improved in a final quarter of 2012. Household spending, one of the pillars of economic growth in 2012, is expected to remain strong as consumer confidence rose to a level close to its historical peak. Labour market conditions tightened even more and continue to defy Brazil’s disappointing economic reality. The unemployment is 4.9% at the end of the year, the second lowest in the series. Together with a 9% increase to a minimum wage, it is expected to provide an additional boost to a household consumption that is already growing at a healthy rate. However, the growth in labour’s productivity remains disappointing and heated labour market conditions are likely to translate into inflationary pressures in 2013. Russia is currently in a unique position as the economy is growing relatively fast, has no debt problems and operates in an environment of positive real interest rates. The major factor for the Russian market is an oil price. We expect the price for the year 2013 to stay around current levels with upside risks given rising tensions in the Middle East. The biggest short- to mid-term risks for Russia remain to be the debt situation in Europe and economic recovery in China. We remain constructive on Indian equities in 2013. The market is well positioned gain support from further monetary easing, an improving policy environment, as evidenced in a series of announcements from the government over the last number of months, and a bottoming out of economic growth early in 2013. A substantial political calendar however implies potential equity market volatility. With a backdrop of weak global growth domestic demand led economies such as India stand out. In addition, lower global growth tends to translate into lower commodity prices which not only helps lower inflation but anchor inflation expectations. Growth in China has slowed down in recent years and that the outlook now is for a lower level of growth than was achieved before. However we expect that policy makers will avoid a hard landing and will provide support to the market. The new leadership will announce their policy changes during the course of 2013 and this has the potential to drive the market further. We believe that the impact of loosening announced in 2012 as well as additional investment in infrastructure will support growth looking into 2013.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 63.172.577,39 62.389.722,80

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 279.899,20 331.348,50 a} Collateral received in the form of bonds 1.754.444,93 3.395.203,27 C. Shares and similar instruments a) Shares 27.993.881,19 26.469.548,10 Of which securities lent 1.624.700,97 3.938.645,47 D. Other securities 5.391,68 E. Open-end undertakings for collective investment 34.628.624,01 35.397.943,97 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -3.168,53 2.355,57 m) Financial indices Futures and forward contracts (+/-) 3.155,98 -5.597,74

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 66.117,08 65.425,58 c) Collateral 16.049,01 41.414,57 B. Payables a) Accounts payable (-) -47.906,11 -48.732,59 c) Borrowings (-) -95.087,52 -40.657,28 d) Collateral (-) -1.754.444,93 -3.395.203,27

V. Deposits and cash at bank and in hand A. Demand balances at banks 317.511,49 134.594,01

VI. Accruals and deferrals A. Expense to be carried forward 1.546,29 B. Accrued income 55.021,58 72.425,49 C. Accrued expense (-) -41.519,99 -37.283,35

TOTAL SHAREHOLDERS' EQUITY 63.172.577,39 62.389.722,80

A. Capital 32.528.213,05 36.840.862,07

B. Income equalization -18.376,09 -3.528,61

C. Profit(Loss) carried forward 25.456.929,66 43.976.262,24

D. Result for the period 5.205.810,77 -18.423.872,90

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 1.754.444,93 3.395.203,27

I.A.B Cash at bank and in hand/deposits 16.049,01 41.414,57

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 554.155,62 692.393,52

IX Financial instruments lent 1.624.700,97 3.938.645,47

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -51.449,30 375,20 C. Shares and similar instruments a) Shares 3.669.742,04 -6.428.849,61 D. Other securities 652,87 -1.489,87 E. Open-end undertakings for collective investment 2.504.708,25 -12.120.021,96 F. Derivative financial instruments l) Financial indices Futures and forward contracts 55.410,27 -5.597,74 G. Receivables, deposits, cash at bank and in hand

and payables -0,15 -0,82

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -5.524,10 2.355,57 b) Other foreign exchange positions and

transactions -1.327.707,70 -75.725,55

II. Investment income and expenses A. Dividends 887.387,17 889.978,44 B. Interests a) Securities and money market instruments 127.444,43 35.183,22 b) Cash at bank and in hand and deposits 196,05 302,80 C. Interest on borrowings (-) -1.383,80 -818,49

III. Other income B. Other 4.916,22

IV. Operating expenses A. Investment transaction and delivery costs (-) -70.096,42 -80.828,80 B. Financial expenses (-) -841,51 -2.273,65 C. Custodian's fee (-) -23.079,68 -31.316,38 D. Manager's fee (-) a) Financial management -449.688,30 -481.352,54 b) Administration and accounting management -63.648,49 -70.930,07 E. Administrative expenses (-) -351,36 -282,00 F. Formation and organisation expenses (-) -5.242,85 -7.309,99 G. Remuneration, social security charges and

pension -5,17 -14,36

H. Services and sundry goods (-) -11.562,18 -14.601,27 J. Taxes -22.106,38 -24.118,61 K. Other expenses (-) -7.042,92 -11.452,64

Income and expenditure for the period Subtotal II + III + IV 359.978,59 205.081,88

V. Profit (loss) on ordinary activities before tax 5.205.810,77 -18.423.872,90

VII. Result for the period 5.205.810,77 -18.423.872,90

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 30.644.364,34 25.548.860,73 Profit (loss) brought forward from the previous

financial year 25.456.929,66 43.976.262,24

Profit for the period available for appropriation 5.205.810,77 -18.423.872,90 Income on the creation of shares (income on the

cancellation of shares) -18.376,09 -3.528,61

II. (Appropriations to) Deductions from capital -30.574.074,15

III. Profit (loss) to be carried forward 25.456.929,66

IV. (Dividends to be paid out) -70.290,19 -91.931,07

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND BRIC

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Open-end funds

UCITS registered with the FSMA

Belgium

HORIZON ACCESS FD BRAZIL KAP 15.452,00 EUR 789,120 12.193.482,24 34,12 19,39 19,30

HORIZON ACCESS FD CHINA KAP 11.800,00 USD 653,000 5.844.508,50 13,45 9,29 9,25

HORIZON ACCESS FD RUSSIA KAP 21.501,00 EUR 427,990 9.202.212,99 21,83 14,63 14,57

HORIZON ACCESS INDIA FD KAP 9.235,00 USD 1.054,780 7.388.420,28 6,34 11,75 11,70

Total investment funds 34.628.624,01 55,05 54,82

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 469.000,00 EUR 59,680 279.899,20 0,45 0,44

Total bonds 279.899,20 0,45 0,44

Shares

Exchange-listed shares

Bermuda

CNPC HONG KONG LTD - 140.000,00 HKD 16,180 221.672,03 0,35 0,35

NINE DRAGONS PAPER HOLDINGS - 136.000,00 HKD 7,000 93.162,54 0,15 0,15

Brazil

ALL AMERICA LATINA LOGISTICA - 16.000,00 BRL 8,310 49.253,57 0,08 0,08

AMBEV-CIA DE BEBIDAS DAS AMERICAS - 1.300,00 BRL 83,700 40.307,46 0,06 0,06

AMBEV-CIA DE BEBIDAS DAS AMERICAS PREF 13.321,00 BRL 85,580 422.304,57 0,67 0,67

AMIL PARTICIPACOES SA - 6.600,00 BRL 30,850 75.425,08 0,12 0,12

ANHANGUERA EDUCACIONAL PARTICIPACOES - 3.000,00 BRL 34,570 38.418,23 0,06 0,06

BANCO BRADESCO S.A. - 6.000,00 BRL 33,940 75.436,19 0,12 0,12

BANCO BRADESCO S.A. PREF 31.031,00 BRL 35,170 404.282,37 0,64 0,64

BANCO DO BRASIL SA - 10.400,00 BRL 25,600 98.625,67 0,16 0,16

BANCO SANTANDER BRASIL SA - 12.600,00 BRL 14,970 69.872,94 0,11 0,11

BM&F BOVESPA SA - 35.938,00 BRL 14,000 186.379,70 0,30 0,30

BR MALLS PARTICIPACOES SA - 8.000,00 BRL 27,020 80.074,09 0,13 0,13

BR PROPERTIES SA - 4.000,00 BRL 25,500 37.784,77 0,06 0,06

BRADESPAR S.A. PREF 4.900,00 BRL 32,830 59.591,41 0,10 0,09

BRASIL TELECOM PARTICIPACOES S.A. PREF 21.500,00 BRL 8,320 66.264,12 0,11 0,11

BRF - BRASIL FOODS SA - 13.300,00 BRL 42,190 207.863,31 0,33 0,33

CEMIG-CIA ENERGETICA DE MINAS GERAIS PREF 10.040,00 BRL 22,600 84.054,08 0,13 0,13

CIA BRAS DISTRIB GRUPO PAO DE ACUCAR PREF B 2.120,00 BRL 90,500 71.072,42 0,11 0,11

CIA DE CONCESSOES RODOVIARIAS - 19.800,00 BRL 19,450 142.659,75 0,23 0,23

CIA HERING - 2.000,00 BRL 41,990 31.109,46 0,05 0,05

COMPANHIA BRASILEIRA DE MEIOS - 6.295,00 BRL 56,990 132.895,74 0,21 0,21

CPFL ENERGIA SA - 6.500,00 BRL 21,400 51.528,06 0,08 0,08

CSN-CIA SIDERURGICA NACIONAL S.A. - 15.100,00 BRL 11,860 66.340,43 0,11 0,11

CVRD-CIA VALE DO RIO DOCE PREF A 33.300,00 BRL 40,870 504.156,70 0,80 0,80

EMBRAER AIRCRAFT CORP-SP ADR SP ADR 1.300,00 USD 28,510 28.112,11 0,05 0,05

EMBRAER SA - 6.000,00 BRL 14,450 32.117,06 0,05 0,05

ENERGIAS DO BRASIL SA - 11.000,00 BRL 12,490 50.894,61 0,08 0,08

FIBRIA CELULOSE SA - 5.000,00 BRL 22,570 41.804,04 0,07 0,07

GERDAU SA PREF 15.300,00 BRL 17,930 101.622,15 0,16 0,16

IKPC-INDS KLABIN DE PAPEL E CELULOSE PREF 8.000,00 BRL 12,790 37.903,32 0,06 0,06

ITAU UNIBANCO HOLDINGS SA PREF PREF 38.700,00 BRL 33,390 478.678,64 0,76 0,76

ITAUSA-INVESTIMENTOS ITAU SA - 46.224,00 BRL 9,690 165.923,53 0,26 0,26

LOJAS AMERICANAS SA -PREF- 7.200,00 BRL 18,330 48.889,05 0,08 0,08

LOJAS RENNER SA - 2.400,00 BRL 79,750 70.902,02 0,11 0,11

METALURGICA GERDAU SA - 5.500,00 BRL 22,900 46.656,79 0,07 0,07

MRV ENGENHARIA E PARTICIPACOES SA - 8.300,00 BRL 11,980 36.834,23 0,06 0,06

MULTIPLUS SA - 1.300,00 BRL 47,720 22.980,55 0,04 0,04

NATURA COSMETICOS SA - 4.100,00 BRL 58,640 89.062,42 0,14 0,14

OGX PETROLEO E GAS PARTICIPACO - 27.100,00 BRL 4,380 43.970,36 0,07 0,07

PDG REALTY SA EMPREENDIMENTOS - 28.000,00 BRL 3,310 34.332,28 0,06 0,05

PETROBRAS-PETROLEO BRASILEIRO S.A. - 48.867,00 BRL 19,550 353.898,81 0,56 0,56

PETROBRAS-PETROLEO BRASILEIRO S.A. PREF 70.426,00 BRL 19,520 509.248,20 0,81 0,81

PORTO SEGURO SA - 3.500,00 BRL 23,490 30.455,64 0,05 0,05

SABESP-CIA SANEAM. BASICO SAO PAULO - 2.400,00 BRL 86,870 77.232,08 0,12 0,12

SOUZA CRUZ S.A. - 6.800,00 BRL 30,810 77.609,93 0,12 0,12

TELEF BRASIL PREF 5.105,00 BRL 49,000 92.663,46 0,15 0,15

TIM PARTICIPACOES SA - 8.000,00 BRL 8,200 24.300,80 0,04 0,04

TIM PARTICIPACOES SA - 1.289,00 USD 19,820 19.378,02 0,03 0,03

TRACTEBEL ENERGIA SA - 3.800,00 BRL 33,350 46.945,73 0,08 0,07

ULTRAPAR PARTICIPACOES SA - 6.300,00 BRL 46,290 108.030,01 0,17 0,17

VALE SA - 22.400,00 BRL 42,280 350.832,38 0,56 0,56

WEG SA - 4.100,00 BRL 27,000 41.007,59 0,07 0,07

Cayman Islands

HENGAN INT GROUP COMPANY LTD - 36.500,00 HKD 69,950 249.853,21 0,40 0,40

SHIMAO PROPERTY HOLDINGS LTD - 90.000,00 HKD 14,620 128.763,93 0,21 0,20

SOHO CHINA LTD - 200.000,00 HKD 6,220 121.737,60 0,19 0,19

TENCENT HOLDINGS - 43.716,00 HKD 249,000 1.065.231,78 1,69 1,69

TINGYI HOLDING CORP - 106.000,00 HKD 21,550 223.541,15 0,36 0,35

XINAO GAS HOLDINGS LTD - 46.000,00 HKD 33,750 151.927,35 0,24 0,24

China

AGRICULTURAL BANK OF CHINA - 907.000,00 HKD 3,830 339.946,37 0,54 0,54

ALIMINUM CORP OF CHINA LTD - 396.000,00 HKD 3,550 137.571,32 0,22 0,22

ANHUI CONCH CEMENT CO LTD - 68.500,00 HKD 28,200 189.035,79 0,30 0,30

BANK OF CHINA LTD - H - 3.076.500,00 HKD 3,460 1.041.687,30 1,66 1,65

BANK OF COMMUNICATIONS LTD - 303.625,00 HKD 5,840 173.522,07 0,28 0,28

CHANGSHA ZOOMLION HEAVY INDUST - 90.000,00 HKD 11,420 100.580,31 0,16 0,16

CHINA CITIC BANK CHINA CITIC BANK 364.000,00 HKD 4,600 163.856,46 0,26 0,26

CHINA COAL ENERGY CO - 206.000,00 HKD 8,420 169.739,79 0,27 0,27

CHINA COMMUNICATIONS CONST-H - 242.000,00 HKD 7,480 177.141,91 0,28 0,28

CHINA CONSTRUCTION BANK - 2.943.000,00 HKD 6,220 1.791.368,77 2,85 2,84

CHINA GAS HOLDINGS LTD - 190.000,00 HKD 6,100 113.419,52 0,18 0,18

CHINA LIFE INSURANCE CO - 308.000,00 HKD 25,300 762.562,75 1,21 1,21

CHINA MERCHANTS BANK CO LTD - 180.669,00 HKD 17,100 302.331,99 0,48 0,48

CHINA MINSHENG BANKING CORP LT - 224.000,00 HKD 8,960 196.408,55 0,31 0,31

CHINA PACIFIC INSURANCE GROUP - 104.800,00 HKD 28,650 293.826,02 0,47 0,47

CHINA RAILWAY GROUP LTD - 240.000,00 HKD 4,530 106.393,18 0,17 0,17

CHINA SHENHUA ENERGY COMPANY LTD - 152.000,00 HKD 33,950 504.995,74 0,80 0,80

CHINA TELECOM CORP LTD - 634.000,00 HKD 4,310 267.405,83 0,43 0,42

CITIC SECURITIES CO LTD - 60.000,00 HKD 19,600 115.083,13 0,18 0,18

COUNTRY GARDEN HOLDINGS COMPANY - 300.000,00 HKD 4,060 119.193,24 0,19 0,19

DAPHNE INTERNATIONAL HOLDINGS - 94.000,00 HKD 10,620 97.691,49 0,16 0,16

DONGFENG MOTOR CORP - 152.000,00 HKD 11,960 177.901,30 0,28 0,28

EVERGRANDE REAL ESTATE GROUP - 310.000,00 HKD 4,250 128.930,29 0,21 0,20

FUJIAN ZIJIN MINING IND - 380.000,00 HKD 3,050 113.419,52 0,18 0,18

GCL POLY ENERGY HOLDINGS LTD - 468.000,00 HKD 1,560 71.445,49 0,11 0,11

GEELY AUTOMOBILE HOLDINGS LTD - 260.000,00 HKD 3,670 93.377,83 0,15 0,15

GOLDEN EAGLE RETAIL GROUP LTD - 70.000,00 HKD 19,080 130.701,56 0,21 0,21

GREAT WALL MOTOR CO LTD - 48.000,00 HKD 24,450 114.848,27 0,18 0,18

HUANENG POWER INTL "H" 196.000,00 HKD 7,170 137.524,34 0,22 0,22

IND & COMM BK OF CHINA - 2.679.760,00 HKD 5,500 1.442.324,37 2,29 2,28

JIANGXI COPPER COMPANY LTD. -H- 108.000,00 HKD 20,400 215.604,72 0,34 0,34

LONGFOR PROPERTIES CO LTD - 91.000,00 HKD 15,180 135.181,58 0,22 0,21

PETROCHINA COMPANY LIMITID - 888.000,00 HKD 10,980 954.156,60 1,52 1,51

PICC PROPERTY & CASUALTY -H- 132.000,00 HKD 10,860 140.283,99 0,22 0,22

PING AN INSURANCE GROUP CO - 83.500,00 HKD 64,900 530.316,97 0,84 0,84

SINOPEC-CHINA PETROL & CHEM CORP. "A" 712.000,00 HKD 8,780 611.756,88 0,97 0,97

SINOPHARM GROUP CO - 48.000,00 HKD 24,250 113.908,81 0,18 0,18

SUN ART RETAIL GROUP LTD - 117.000,00 HKD 11,900 136.250,21 0,22 0,22

WANT WANT CHINA HOLDINGS LTD - 283.000,00 HKD 10,680 295.775,39 0,47 0,47

WEICHAI POWER CO LTD - 36.000,00 HKD 34,400 121.189,58 0,19 0,19

YANZHOU COAL MINING CO LTD - 110.000,00 HKD 12,820 138.001,90 0,22 0,22

Hong Kong

BEIJING ENTERPRISES HOLD LTD - 34.500,00 HKD 50,500 170.496,25 0,27 0,27

BELLE INTERNATIONAL HOLDINGS - 237.000,00 HKD 16,820 390.102,46 0,62 0,62

BRILIANCE CHINA AUTOMOTIVE - 148.000,00 HKD 9,540 138.170,22 0,22 0,22

CHINA MENGNIU DAIRY CO LTD - 66.000,00 HKD 22,000 142.092,44 0,23 0,23

CHINA MERCHANTS HLDGS INTL - 100.000,00 HKD 24,850 243.181,62 0,39 0,39

CHINA MOBILE LTD. - 249.500,00 HKD 90,250 2.203.545,95 3,50 3,49

CHINA NATIONAL BUILDING MATERI - 168.000,00 HKD 11,340 186.434,67 0,30 0,30

CHINA OVERSEAS LAND & INVEST LTD - 197.158,00 HKD 23,100 445.687,79 0,71 0,71

CHINA RESOURCES ENTERPRISE - 60.000,00 HKD 27,950 164.110,89 0,26 0,26

CHINA RESOURCES LAND - 106.000,00 HKD 21,100 218.873,24 0,35 0,35

CHINA RESOURCES POWER HOLDINGS CO - 103.800,00 HKD 19,780 200.922,23 0,32 0,32

CHINA UNICOM HONG KONG LTD - 217.714,00 HKD 12,420 264.613,69 0,42 0,42

CITIC PACIFIC LTD - 120.000,00 HKD 11,560 135.751,12 0,22 0,22

CNOOC LTD - 744.000,00 HKD 16,780 1.221.713,13 1,94 1,93

COSCO PACIFIC - 170.000,00 HKD 11,040 183.663,28 0,29 0,29

KINGBOARD CHEMICALS HOLDIGNS - 30.000,00 HKD 27,500 80.734,34 0,13 0,13

LENOVO GROUP LTD - 264.000,00 HKD 7,020 181.361,62 0,29 0,29

SHANGAI INDUSTRIAL HOLDING - 53.000,00 HKD 27,250 141.334,02 0,23 0,22

India

RELIANCE INDUSTRIES LTD SP GDR "144A" 24,00 USD 30,520 555,58 0,00 0,00

Total shares 27.993.881,19 44,50 44,31

Options and futures

Exchange-listed futures

Hong Kong

HANG SENG CHINA ENTERPR INDEX JAN 13 5,00 HKD 11.451,000 280.148,16 0,45 0,44

Suspense accounts (futures)

Hong Kong

HANG SENG CHINA ENTERPR INDEX JAN 13 -2.830.500,00 HKD 1,000 -276.992,18 -0,44 -0,44

Total options and futures 3.155,98 0,01 0,01

Forward contracts EUR -3.168,53 -0,01

TOTAL SECURITIES PORTFOLIO 62.902.391,85 100,00 99,57

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 1.754.444,93 EUR 1,000 1.754.444,93 2,78

TOTAL RECEIVED COLLATERAL 1.754.444,93 2,78

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO 157.137,33 EUR 1,000 157.137,33 0,25

KBC GROUP HKD -971.670,89 HKD 1,000 -95.087,52 -0,15

KBC GROUP USD 96.292,79 USD 1,000 73.037,61 0,12

Total demand accounts 135.087,42 0,21

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 24.408,86 EUR 1,000 24.408,86 0,04

KBC GROUP FUT. REK. HKD 643.039,17 HKD 1,000 62.927,69 0,10

Total managed futures accounts 87.336,55 0,14

TOTAL CASH AT BANK AND IN HAND 222.423,97 0,35

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP BRL RECEIVABLE 75.048,60 BRL 1,000 27.800,93 0,04

KBC GROUP EUR RECEIVABLE 38.316,15 EUR 1,000 38.316,15 0,06

Netherlands

KBC CLEARING NV DEKKING HKD 164.000,00 HKD 1,000 16.049,01 0,03

Total receivables 82.166,09 0,13

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-1.754.444,93 EUR 1,000 -1.754.444,93 -2,78

KBC GROUP EUR PAYABLE -47.906,11 EUR 1,000 -47.906,11 -0,08

Payables -1.802.351,04 -2,85

TOTAL RECEIVABLES AND PAYABLES -1.720.184,95 -2,72

OTHER

Interest receivable EUR 53.636,68 0,09

Accrued interest EUR 1.384,90 0,00

Expenses payable EUR -41.519,99 -0,07

TOTAL OTHER 13.501,59 0,02

TOTAL NET ASSETS 63.172.577,39 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium 0,04 0,19 0,15 0,27 Bermuda 0,20 0,13 0,33 0,50 Brazil 30,31 28,75 29,32 28,24 China 26,03 25,80 27,83 28,14 Cayman Islands 2,65 2,44 3,15 3,09 Hong Kong 10,56 11,87 12,39 11,87 India 12,82 14,10 11,74 11,63 Indonesia 0,00 0,00 0,07 0,07 Ireland 0,00 0,53 0,49 0,44 Luxembourg 0,00 0,00 0,94 0,73 Russia 17,09 15,84 13,59 14,62 U.S.A. 0,30 0,35 0,00 0,40 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 43,41 40,49 37,33 36,09 Consum(cycl) 6,45 6,39 6,40 6,64 Cons.goods 6,02 6,91 7,48 8,08 Pharma 1,63 1,71 1,76 1,75 Financials 25,84 25,97 27,41 29,77 Technology 4,46 4,90 4,90 4,13 Telecomm. 5,67 7,27 7,23 6,64 Utilities 3,27 3,26 3,91 3,07 Real est. 3,15 3,01 3,45 3,70 Unit trusts 0,10 0,10 0,12 0,12 Various 0,00 -0,01 0,01 0,01 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 BRL 29,50 27,68 28,97 28,09 CNY 7,49 7,57 8,67 8,33 EUR 2,45 0,26 1,04 1,06 HKD 32,17 33,50 35,58 35,90 INR 12,75 14,09 11,83 11,85 USD 15,64 16,90 13,91 14,77 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND BRIC (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 11.720.641,43 10.993.190,22 22.713.831,66 Sales 13.851.602,56 13.117.144,93 26.968.747,48 Total 1 25.572.243,99 24.110.335,15 49.682.579,14 Subscriptions 3.318.510,68 2.369.154,24 5.687.664,92 Redemptions 5.379.660,21 4.606.913,65 9.986.573,86 Total 2 8.698.170,89 6.976.067,89 15.674.238,78 Monthly average of total assets

66.636.419,75 62.348.837,05 64.483.347,92

Turnover rate 25,32 % 27,48 % 52,74 %

1st half of year 2nd half of year YearPurchases 11.720.641,43 10.993.190,22 22.713.831,66 Sales 13.851.602,56 13.117.144,93 26.968.747,48 Total 1 25.572.243,99 24.110.335,15 49.682.579,14 Subscriptions 3.318.510,68 2.369.154,24 5.687.664,92 Redemptions 5.379.660,21 4.606.913,65 9.986.573,86 Total 2 8.698.170,89 6.976.067,89 15.674.238,78 Monthly average of total assets

65.865.463,52 61.977.382,85 64.084.458,36

Corrected turnover rate 25,62 % 27,65 % 53,07 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR EUR 1.754.444,93 1.754.444,93 N/A 31.12.2012

KBCCLEAR DEKKING HKD HKD 164.000,00 16.049,01 N/A 31.12.2012

HANGSCHE 13/01/2013 HKD 2.862.750,00 280.148,16 50,00 21.12.2012

KBC AK-VK HKD-EUR 130313-121214 10.10708

HKD 2.800.000,00 274.007,46 N/A 14.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total

2010 - 12 11.285,31 3.035,22 11.868,79 3.222,93 48.352,71 11.563,88 59.916,58

2011 - 12 6.707,45 936,49 13.842,83 2.496,99 41.217,32 10.003,38 51.220,71

2012 - 12 3.883,30 463,48 5.701,92 2.013,65 39.398,71 8.453,22 47.851,93

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 16.156.467,64 4.265.764,37 16.913.030,02 4.528.669,41

2011 - 12 9.256.358,44 1.356.597,41 19.805.584,90 3.400.163,56

2012 - 12 5.088.060,87 600.398,69 7.441.509,02 2.580.953,21

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 93.457.269,12 1.566,50 1.531,72

2011 - 12 62.389.722,80 1.224,07 1.193,27

2012 - 12 63.172.577,39 1.327,69 1.285,09

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0946137966 EUR 7.84% -0.78% -5.39% 24/05/2006 4.32%

DIV BE0946136950 EUR 7.84% -0.78% -5.39% 24/05/2006 4.32%

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

The bar chart shows the performance for full financial years. 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 incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 28/03/2013: 6.24 EUR net (8.32 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Distribution: 1.093% Capitalization: 1.732% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 4,056 2,419 59.64%

CSFBSAS 3,916 2,344 59.85%

MERRILL 5,964 3,644 61.09%

MORGAN STANLEY 3,302 1,748 52.93%

NOMURA 4,523 2,558 56.56%

UBSWDR 1,423 889 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.6% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.6% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The Hang Seng China Enterprises Index is a capitalization-weighted index comprised of state-owned Chinese companies (H-Shares) listed on the Stock Exchange of Hong Kong. The base value of this index is 2000 as of January 3, 2000. The Stock Exchange of Hong Kong has all proprietary rights with repect to the index. In no way the Stock Exchange of Hong Kong endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. The Stock Exchange of Hong Kong disclaims any liability for the issue and offering of the shares of this undertaking for collective investment. The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service.

Name Maximum management feeHorizon-Access Fund Brazil 1,60 Horizon-Access Fund China-Classic Shares 1,60 Horizon-Access Fund Russia 1,60 Horizon-Access India Fund-Classic Shares 1,60 KBC Equity Fund-BRIC 1,60

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 64.889,64 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ALUMINUM CORP OF CHINA LTD -H- HKD 395.999 3,550 137.570,97

BANK OF COMMUNICATIONS CO -H- HKD 303.624 5,840 173.521,50

CHINA MERCHANTS BANK CO LTD -H- HKD 180.668 17,100 302.330,32

CHINA NATL. BUILDING MATERIAL -H- HKD 135.999 11,340 150.922,20

CHINA OVERS LAND INV HKD 64.000 23,100 144.675,94

CHINA UNICOM HONG KONG LTD HKD 217.713 12,420 264.612,47

GCL POLY ENERGY HOLDINGS LTD HKD 467.999 1,560 71.445,33

GREAT WALL MOTOR CO LTD -H- HKD 3.514 24,450 8.407,85

KUNLUN ENERGY COMPANY LTD HKD 139.999 16,180 221.670,45

SHANGHAI INDUST.HOL. HKD 7.793 27,250 20.781,44

SHIMAO PROPERTY HOLDINGS LTD HKD 89.999 14,620 128.762,50

Total 1.624.700,97

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FRANCE 2003 2,25% 25/07/2020 EUR 139.000 EUR 202.252,37

FRANCE 2004 1,60% 25/07/2015 EUR 580.000 EUR 745.301,16

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 428.000 EUR 471.858,02

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 299.000 EUR 335.033,39

Total 1.754.444,94 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund CSOB BRIC

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND CSOB BRIC

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 30 November 2007 Initial subscription price: 1000 CZK Currency: CZK

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED The sub-fund invests primarily, directly or indirectly, in shares of companies from different sectors in Brazil, Russia, India and China.

RISK CONCENTRATION Shares of Brazilian, Russian, Indian and Chinese companies.

INVESTMENTS IN ASSETS OTHER THAN SECURITIES OR MONEY MARKET INSTRUMENTS Under the investment policy referred to above, the sub-fund may invest primarily in permitted assets other than securities or money market instruments, including units in UCIs.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR The KBC Equity Fund CSOB BRIC fund invests directly and indirectly in the following developing economies which make up the BRIC acronym: Brazil, Russia, India and China. The KBC Equity Fund CSOB BRIC starts the investment process in these markets by following the MSCI BRIC breakdown: Brazil 29%, Russia 14%, India 15% and China 42%, and then applying any country preferences. The fund finished the year with a positive return but underperformed its benchmark, MSCI BRIC. Over the first half of the 2012, the changing situation in Europe was the primary concern for investors who were in a risk-on, risk-off mode depending primarily on the Eurozone developments. Throughout the first quarter, the situation in Europe continued to improve and markets performed strongly. Investors accepted Greek sovereign debt swap offer and the European Central Bank provided support to troubled European banks. Economists were of opinion that China, the most important trading partner for Brazil and receiver of its commodities-based exports, will experience a slowdown in growth but short of outright recession. Global situation worsened in the second quarter of the year. In France, anti-austerity measures of a newly elected president were in opposition to the so-far dominating view advocated by German Chancellor Angela Merkel and resulted in a widening of an already existing rift in European policy. Investors were concerned that Greece, following local parliamentary elections, may leave with the Eurozone and return to its old currency, the drachma and cause an uncontrolled breakup of the European Monetary Union. Contagion fears spread to another weak link in a European chain – Spain. Its macroeconomic numbers continued to disappoint and Madrid was forced to ask for a bailout as costs of financing in capital markets were too high. Political issues were not the only force behind declines in equities. First half of the year saw a substantial deterioration in macro data globally – not only in Europe that remained in the spotlight, but also in the US and China. As a consequence, markets were very weak and in a risk-off mode, with most risk assets reversing the gains achieved in first months of the year.

At the start of the second half of the year, markets moved considerably upwards although the start of the third quarter brought even more disappointing macroeconomic news. The US growth forecast was downgraded and problems in the Eurozone continued. The equity rally gained momentum towards the end of the summer on anticipation that central banks worldwide, and an American monetary authority in particular, will start a new round of monetary easing. The expectations proved to be true when the US Fed announced QE3 in September, along with the aim of keeping interest rates low until at least the middle of 2015. In the final quarter of the year, markets gained some positive momentum in its final months on the expectation that a political resolution of ‘fiscal cliff’ issue in the United States would be found and cuts in spending and increases in taxes, which would likely prompt the US into recession, would be avoided. Other main news over the period were successful leadership transition in China and elections in Japan. On the economic front in Brazil, economic activity substantially let down in 2012. At the start of the year, market watchers were quite upbeat about prospects for Latin America’s largest economy and expected GDP growth to come in at 3.4% for the full year. However, economic data continued to come in below expectations, the awaited economic recovery failed to materialise and GDP forecasts had to be revised down accordingly. The most recent forecast for 2012 GDP growth is a lacklustre 1%. On a monetary policy front, the interest rate, the Selic, finished year at 7.25%, an all-time historic low, down from 11% at the start of the year. The slowdown in economic activity was recognised early by the Brazilian Central Bank which proved to be very proactive in their monetary response and the interest rate has been decreased by a total of 500 basis points since the summer of 2011. However, interest rate cuts and substantial pro-cyclical fiscal policy promoted by the Brazilian government failed to have a substantial and lasting impact on Brazilian economy, reinforcing the opinion that recent deterioration in economic activity is not short-term, cyclical and driven by global macroeconomic factors and but rather of more structural, domestic and long-term nature. After starting the year strongly, the Russian economic growth decelerated and external risks were rising. Despite the slowdown in economic activity in 2012, the Russian economy was fairly solid. Economic growth decelerated to 2.9 % YoY in the third quarter from 4.8 % YoY in 4Q11 but the GDP growth for the entire year should be between 3.5 % - 4 %, thus slightly lower than the year before (4.3 % in 2011). Growth was mainly driven by consumer activity, service sector expansion and some manufacturing efficiency gains rather than by extractive industries. The inflation rate reached all-time low in April when it was only 3.6 % YoY, mainly due to tariff hikes postponement. However, from July inflation was on the rise as tariffs were raised and food prices soared due to bad harvest. It should end the year around 6.5 %. The unemployment rate decreased to 5.2 % in August and reached the lowest level in modern Russian history. Surprisingly the Russian stock market did not perform as well as expected given the strong economic growth and high average oil prices. International investors were held back given a series of long term negative factors such as high corruption and poor corporate governance as well as strong national protests against Putin’s establishment.

The Indian market kicked off the year strongly outperforming the region on the back of the Central Bank signaling that it would follow a monetary easing strategy. However from end February to end May Indian equities pulled back strongly in the face of multiple headwinds including: 1) a distracted Government due to political turmoil, following a series of corruption exposes, 2) poor economic data coupled with stubbornly high inflation limiting the RBI’s ability to ease monetary policy, 3) stubbornly high global crude oil prices, putting added pressure on India’s already strained fiscal position, 4) the proposal to address tax avoidance through the introduction of General Anti Avoidance Rule (GAAR), 5) India's governing National Congress party suffering major setbacks in the five state elections 6) S&P downgrade of India's outlook to "negative” and 7) global risk aversion in the face of an uncertain global macro environment due to slowing growth and the European crisis. The second half of the year kicked off with a major cabinet reshuffle and Pranab Mukherjee was elected as the next President of India and Chidambaram Palaniappan staged a comeback as the Finance Minister. The turning point for the market came in September on the back of unexpected reform measure announced by the government, including diesel price hikes, an increased FDI limit across a number of areas and a number of important cabinet approvals passed to name a few. Rainfall also picked up over the month easing concerns surrounding the impact a deficient monsoon would have on agri-production. This together with positive developments in economic numbers combined to support investor sentiment. The rally gained further traction in the last quarter of 2012 with the government announcing the increase in FII limits for Rupee denominated government and corporate bonds and securing the vote of FDI in multi-brand retail. China went against the global trend in April, rising sharply and despite falling in May and June, the domestic market ended the first half of the year slightly ahead of international indices. While the volatility globally continued, there was also concern domestically about weakening growth in China over the first half of 2012. Growth was slower than most expected, with the official growth target being lowered to 7.5%. Most domestic activity metrics were weak – industrial production, investment and retail sales. On the positive side, inflation continued to fall, leaving room for policy makers to make changes if needed. While there was some slowdown in employment growth, there was no mass unemployment as was seen in 2008/2009. Following this slowdown, Chinese authorities began to take steps to boost growth. Initially the focus was on increasing investment, with particular focus on water and other environmental areas, utilities, railways and social housing. However at the beginning of June, the People’s Bank of China took the decision to lower lending and deposit rates by 25bps. They also took steps to liberalise the interest rate regime, seen as a significant positive. In September macroeconomic releases from China were showing a turnaround. Industrial production, retail sales and fixed investment all started to show signs of stabilization over the fourth quarter, lessening worries that the Chinese economy was experiencing a hard landing. On the political front, over the quarter, we saw the completion of a successful leadership transition in the country and while it will be 2013 before the leadership takes action on most items, the transition was completed smoothly which was a positive for the market. While the Chinese news was a significant driver of the region over the period, international factors continued to influence sentiment positively.

2.1.8 FUTURE POLICY Looking forward, we believe that 2013 will be a year of sluggish and weak growth for the overall global economy. While global growth is expected to be positive it is not anticipated that it will be much more positive when compared to 2012. Developed markets are being highlighted as the point of weakness with only modest expansion expected. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on global growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to continue their decline in 2013. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. Household incomes and corporate and financial sector rebalancing is expected to continue hindering consumption growth in these regions. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only a short term solution in advance of the debt ceiling debate to follow in February. Inflation is expected to remain contained in developed markets this year allowing monetary policy to focus on growth. In the US, growth is predicted to improve in the second half of the year along with improvement in the housing market and unemployment figures. It would appear that growth in 2013 will emanate from the same source as 2012, with almost 90% of global GDP growth expected to originate from Emerging Markets. Growth is also expected to continue in China where considerable confidence remains, however it is not expected to surpass the growth of 2012. In relation to the BRIC countries: in Brazil there are some signs that economy is turning the corner as industrial business confidence improved in a final quarter of 2012. Household spending, one of the pillars of economic growth in 2012, is expected to remain strong as consumer confidence rose to a level close to its historical peak. Labour market conditions tightened even more and continue to defy Brazil’s disappointing economic reality. The unemployment is 4.9% at the end of the year, the second lowest in the series. Together with a 9% increase to a minimum wage, it is expected to provide an additional boost to a household consumption that is already growing at a healthy rate. However, the growth in labour’s productivity remains disappointing and heated labour market conditions are likely to translate into inflationary pressures in 2013. Russia is currently in a unique position as the economy is growing relatively fast, has no debt problems and operates in an environment of positive real interest rates. The major factor for the Russian market is an oil price. We expect the price for the year 2013 to stay around current levels with upside risks given rising tensions in the Middle East. The biggest short- to mid-term risks for Russia remain to be the debt situation in Europe and economic recovery in China. We remain constructive on Indian equities in 2013. The market is well positioned gain support from further monetary easing, an improving policy environment, as evidenced in a series of announcements from the government over the last number of months, and a bottoming out of economic growth early in 2013. A substantial political calendar however implies potential equity market volatility. With a backdrop of weak global growth domestic demand led economies such as India stand out. In addition, lower global growth tends to translate into lower commodity prices which not only helps lower inflation but anchor inflation expectations. Growth in China has slowed down in recent years and that the outlook now is for a lower level of growth than was achieved before. However we expect that policy makers will avoid a hard landing and will provide support to the market. The new leadership will announce their policy changes during the course of 2013 and this has the potential to drive the market further. We believe that the impact of loosening announced in 2012 as well as additional investment in infrastructure will support growth looking into 2013.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 435.601.850,28 381.855.317,11

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 13.254.920,88 10.500.197,48 C. Shares and similar instruments a) Shares 194.738.349,64 163.889.432,17 Of which securities lent 12.265.806,25 11.075.107,22 D. Other securities 27.500,81 E. Open-end undertakings for collective investment 238.086.500,59 215.639.285,05

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 813.125,61 1.006.919,98 B. Payables a) Accounts payable (-) -52.052,02 -313.641,37 c) Borrowings (-) -539.529,48 -139.107,13 d) Collateral (-) -13.254.920,88 -10.500.197,48

V. Deposits and cash at bank and in hand A. Demand balances at banks 2.347.392,77 1.665.198,50

VI. Accruals and deferrals A. Expense to be carried forward 6.487,68 B. Accrued income 365.362,41 213.993,22 C. Accrued expense (-) -157.299,24 -140.751,80

TOTAL SHAREHOLDERS' EQUITY 435.601.850,28 381.855.317,11

A. Capital 356.443.236,78 331.357.956,75

B. Income equalization 48.592,46 -35.389,69

C. Profit(Loss) carried forward 50.497.360,36 145.044.185,14

D. Result for the period 28.612.660,68 -94.511.435,09

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 13.254.920,88 10.500.197,48

IX Financial instruments lent 12.265.806,25 11.075.107,22

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 25.232.789,43 -47.702.708,80 D. Other securities 3.326,16 -3.224,74 E. Open-end undertakings for collective investment 15.939.593,99 -66.442.749,28 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -15.103.798,90 19.090.662,84

II. Investment income and expenses A. Dividends 5.999.137,09 4.624.641,57 B. Interests a) Securities and money market instruments 910.607,50 96.553,07 b) Cash at bank and in hand and deposits 1.725,73 2.467,94 C. Interest on borrowings (-) -4.062,76 -3.401,76

III. Other income B. Other 13.449,80

IV. Operating expenses A. Investment transaction and delivery costs (-) -712.883,58 -713.605,59 B. Financial expenses (-) -5.715,28 -31.244,39 C. Custodian's fee (-) -139.558,05 -136.309,19 D. Manager's fee (-) a) Financial management -2.902.049,36 -2.683.382,59 b) Administration and accounting management -410.670,56 -397.647,61 F. Formation and organisation expenses (-) -31.444,31 -37.733,74 G. Remuneration, social security charges and

pension -77,33

H. Services and sundry goods (-) -90.395,74 -77.946,98 J. Taxes -10.817,47 -25.761,72 K. Other expenses (-) -63.123,21 -83.416,59

Income and expenditure for the period Subtotal II + III + IV 2.540.750,00 546.584,89

V. Profit (loss) on ordinary activities before tax 28.612.660,68 -94.511.435,09

VII. Result for the period 28.612.660,68 -94.511.435,09

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 79.158.613,50 50.497.360,36 Profit (loss) brought forward from the previous

financial year 50.497.360,36 145.044.185,14

Profit for the period available for appropriation 28.612.660,68 -94.511.435,09 Income on the creation of shares (income on the

cancellation of shares) 48.592,46 -35.389,69

II. (Appropriations to) Deductions from capital -79.158.613,50

III. Profit (loss) to be carried forward 50.497.360,36

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND CSOB BRIC

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Open-end funds

UCITS registered with the FSMA

Belgium

HORIZON ACCESS FD BRAZIL KAP 4.257,00 EUR 789,120 84.304.588,45 9,40 19,48 19,36

HORIZON ACCESS FD CHINA KAP 3.266,00 USD 653,000 40.596.320,86 3,72 9,38 9,32

HORIZON ACCESS FD RUSSIA KAP 5.816,00 EUR 427,990 62.468.709,11 5,91 14,43 14,34

HORIZON ACCESS INDIA FD KAP 2.526,00 USD 1.054,780 50.716.882,17 1,73 11,72 11,64

Total investment funds 238.086.500,59 55,01 54,66

Shares

Exchange-listed shares

Bermuda

CNPC HONG KONG LTD - 36.000,00 HKD 16,180 1.430.506,63 0,33 0,33

Brazil

AMBEV-CIA DE BEBIDAS DAS AMERICAS PREF 4.005,00 BRL 85,580 3.186.368,35 0,74 0,73

ANHANGUERA EDUCACIONAL PARTICIPACOES - 800,00 BRL 34,570 257.105,01 0,06 0,06

BANCO BRADESCO S.A. ADR 2.200,00 USD 17,370 727.410,92 0,17 0,17

BANCO BRADESCO S.A. PREF 8.400,00 BRL 35,170 2.746.457,18 0,64 0,63

BANCO DO BRASIL SA - 2.400,00 BRL 25,600 571.179,20 0,13 0,13

BANCO SANTANDER BRASIL SA - 4.100,00 BRL 14,970 570.593,52 0,13 0,13

BM&F BOVESPA SA - 10.100,00 BRL 14,000 1.314.530,26 0,30 0,30

BR MALLS PARTICIPACOES SA - 3.000,00 BRL 27,020 753.577,25 0,17 0,17

BRF - BRASIL FOODS SA - 2.000,00 BRL 42,190 784.441,75 0,18 0,18

BRF - BRASIL FOODS SA - 1.100,00 USD 21,110 442.016,25 0,10 0,10

CEMIG-CIA ENERGETICA DE MINAS GERAIS PREF 2.525,00 BRL 22,600 530.506,85 0,12 0,12

CIA BRAS DISTRIB GRUPO PAO DE ACUCAR PREF B 600,00 BRL 90,500 504.801,93 0,12 0,12

CIA DE CONCESSOES RODOVIARIAS - 6.800,00 BRL 19,450 1.229.559,91 0,28 0,28

COMPANHIA BRASILEIRA DE MEIOS - 1.940,00 BRL 56,990 1.027.830,65 0,24 0,24

CPFL ENERGIA SA - 3.100,00 BRL 21,400 616.732,23 0,14 0,14

CSN-CIA SIDERURGICA NACIONAL S.A. - 5.500,00 BRL 11,860 606.413,07 0,14 0,14

CVRD-CIA VALE DO RIO DOCE PREF A 7.900,00 BRL 40,870 3.001.600,62 0,69 0,69

DIAGNOSTICOS DA AMERICA - 3.100,00 BRL 13,190 380.126,08 0,09 0,09

DURATEX SA - 3.400,00 BRL 14,850 469.382,13 0,11 0,11

EMBRAER AIRCRAFT CORP-SP ADR SP ADR 400,00 USD 28,510 217.077,36 0,05 0,05

EMBRAER SA - 1.500,00 BRL 14,450 201.502,43 0,05 0,05

GERDAU SA - 1.600,00 USD 8,990 273.802,24 0,06 0,06

GERDAU SA PREF 3.000,00 BRL 17,930 500.060,70 0,12 0,12

HYPERMARCAS SA - 1.200,00 BRL 16,620 185.410,12 0,04 0,04

ITAU UNIBANCO HOLDINGS SA PREF PREF 6.600,00 BRL 33,390 2.048.714,93 0,47 0,47

ITAU UNIBANCO HOLDINGS SA PREF PREF 3.200,00 USD 16,460 1.002.621,76 0,23 0,23

ITAUSA-INVESTIMENTOS ITAU SA - 11.954,00 BRL 9,690 1.076.857,42 0,25 0,25

LOJAS AMERICANAS SA -PREF- 3.300,00 BRL 18,330 562.338,19 0,13 0,13

LOJAS RENNER SA - 700,00 BRL 79,750 518.979,15 0,12 0,12

MULTIPLUS SA - 600,00 BRL 47,720 266.178,43 0,06 0,06

NATURA COSMETICOS SA - 900,00 BRL 58,640 490.634,01 0,11 0,11

OGX PETROLEO E GAS PARTICIPACO - 8.800,00 BRL 4,380 358.325,70 0,08 0,08

OI SA - 6.401,00 BRL 9,160 545.085,31 0,13 0,13

PDG REALTY SA EMPREENDIMENTOS - 16.300,00 BRL 3,310 501.576,03 0,12 0,12

PETROBRAS-PETROLEO BRASILEIRO S.A. - 8.600,00 BRL 19,550 1.563.026,68 0,36 0,36 PETROBRAS-PETROLEO BRASILEIRO S.A. ADR-PREF

2.200,00 USD 19,300 808.234,35 0,19 0,19

PETROBRAS-PETROLEO BRASILEIRO S.A. ARD - ORD

2.600,00 USD 19,470 963.599,61 0,22 0,22

PETROBRAS-PETROLEO BRASILEIRO S.A. PREF 15.600,00 BRL 19,520 2.830.906,92 0,65 0,65

PORTO SEGURO SA - 1.600,00 BRL 23,490 349.401,03 0,08 0,08

SABESP-CIA SANEAM. BASICO SAO PAULO - 700,00 BRL 86,870 565.313,09 0,13 0,13

SOUZA CRUZ S.A. - 1.400,00 BRL 30,810 400.996,80 0,09 0,09

TELEF BRASIL PREF 1.660,00 BRL 49,000 756.180,28 0,18 0,17

TRACTEBEL ENERGIA SA - 1.600,00 BRL 33,350 496.063,19 0,12 0,11

ULTRAPAR PARTICIPACOES SA - 600,00 USD 22,280 254.462,48 0,06 0,06

ULTRAPAR PARTICIPACOES SA - 1.200,00 BRL 46,290 516.404,01 0,12 0,12

VALE SA - 7.200,00 BRL 42,280 2.830.014,45 0,65 0,65

VALE SA - 600,00 USD 20,960 239.386,60 0,06 0,06

WEG SA - 800,00 BRL 27,000 200.805,19 0,05 0,05

Cayman Islands

HENGAN INT GROUP COMPANY LTD - 10.000,00 HKD 69,950 1.717.894,84 0,40 0,39

SHIMAO PROPERTY HOLDINGS LTD - 24.000,00 HKD 14,620 861.722,58 0,20 0,20

SHUI ON LAND LTD - 79.500,00 HKD 3,750 732.162,12 0,17 0,17

TENCENT HOLDINGS - 11.784,00 HKD 249,000 7.206.110,84 1,67 1,65

TINGYI HOLDING CORP - 30.000,00 HKD 21,550 1.587.732,69 0,37 0,36

XINAO GAS HOLDINGS LTD - 10.000,00 HKD 33,750 828.862,77 0,19 0,19

China

AGRICULTURAL BANK OF CHINA - 276.000,00 HKD 3,830 2.596.071,88 0,60 0,60

AIR CHINA LTD - 48.000,00 HKD 6,550 772.131,72 0,18 0,18

ALIMINUM CORP OF CHINA LTD - 124.000,00 HKD 3,550 1.081.082,64 0,25 0,25

ANHUI CONCH CEMENT CO LTD - 20.500,00 HKD 28,200 1.419.749,83 0,33 0,33

ANTA SPORTS PRODUCTS LTD - 36.000,00 HKD 6,860 606.506,52 0,14 0,14

BANK OF CHINA LTD - H - 877.000,00 HKD 3,460 7.452.200,82 1,72 1,71

BANK OF COMMUNICATIONS LTD - 69.895,00 HKD 5,840 1.002.461,76 0,23 0,23

CHINA CITIC BANK CHINA CITIC BANK 94.600,00 HKD 4,600 1.068.704,96 0,25 0,25

CHINA COAL ENERGY CO - 59.000,00 HKD 8,420 1.220.036,88 0,28 0,28

CHINA COMMUNICATIONS CONST-H - 67.000,00 HKD 7,480 1.230.793,68 0,28 0,28

CHINA CONSTRUCTION BANK - 802.000,00 HKD 6,220 12.251.058,40 2,83 2,81

CHINA GAS HOLDINGS LTD - 54.000,00 HKD 6,100 808.970,07 0,19 0,19

CHINA LIFE INSURANCE CO - 89.000,00 HKD 25,300 5.529.926,83 1,28 1,27

CHINA MERCHANTS BANK CO LTD - 51.211,00 HKD 17,100 2.150.642,50 0,50 0,49

CHINA MINSHENG BANKING CORP LT - 59.000,00 HKD 8,960 1.298.281,53 0,30 0,30

CHINA OILFIELD SERVICES LTD - 14.000,00 HKD 15,980 549.431,64 0,13 0,13

CHINA PACIFIC INSURANCE GROUP - 30.600,00 HKD 28,650 2.153.053,94 0,50 0,49

CHINA RAILWAY GROUP LTD - 76.000,00 HKD 4,530 845.513,71 0,20 0,19

CHINA SHENHUA ENERGY COMPANY LTD - 35.000,00 HKD 33,950 2.918.210,93 0,67 0,67

CHINA TELECOM CORP LTD - 166.000,00 HKD 4,310 1.757.090,84 0,41 0,40

CITIC SECURITIES CO LTD - 26.500,00 HKD 19,600 1.275.589,11 0,30 0,29

COUNTRY GARDEN HOLDINGS COMPANY - 63.928,00 HKD 4,060 637.420,47 0,15 0,15

DONGFENG MOTOR CORP - 42.000,00 HKD 11,960 1.233.642,51 0,29 0,28

EVERGRANDE REAL ESTATE GROUP - 87.000,00 HKD 4,250 908.065,22 0,21 0,21

FUJIAN ZIJIN MINING IND - 115.492,00 HKD 3,050 865.088,62 0,20 0,20

GCL POLY ENERGY HOLDINGS LTD - 127.000,00 HKD 1,560 486.560,87 0,11 0,11

GOME ELECTRICAL APPLIANCES HLD - 300.000,00 HKD 0,920 677.825,56 0,16 0,16

GREAT WALL MOTOR CO LTD - 13.400,00 HKD 24,450 804.623,14 0,19 0,19

GUANGZHOU AUTOMOBILE GROUP CORP - 34.000,00 HKD 6,870 573.646,72 0,13 0,13

HUANENG POWER INTL "H" 54.000,00 HKD 7,170 950.871,37 0,22 0,22

IND & COMM BK OF CHINA - 770.660,00 HKD 5,500 10.409.607,75 2,41 2,39

JIANGXI COPPER COMPANY LTD. -H- 27.000,00 HKD 20,400 1.352.704,05 0,31 0,31

LONGFOR PROPERTIES CO LTD - 24.000,00 HKD 15,180 894.729,73 0,21 0,21

PETROCHINA COMPANY LIMITID - 256.000,00 HKD 10,980 6.903.211,23 1,60 1,59

PICC PROPERTY & CASUALTY -H- 36.000,00 HKD 10,860 960.154,64 0,22 0,22

PING AN INSURANCE GROUP CO - 22.500,00 HKD 64,900 3.586.212,93 0,83 0,82

SINOPEC-CHINA PETROL & CHEM CORP. "A" 204.000,00 HKD 8,780 4.398.793,16 1,02 1,01

SINOPHARM GROUP CO - 19.600,00 HKD 24,250 1.167.284,37 0,27 0,27

SUN ART RETAIL GROUP LTD - 25.000,00 HKD 11,900 730.627,19 0,17 0,17

WANT WANT CHINA HOLDINGS LTD - 81.000,00 HKD 10,680 2.124.541,06 0,49 0,49

WEICHAI POWER CO LTD - 9.599,00 HKD 34,400 810.948,53 0,19 0,19

YANZHOU COAL MINING CO LTD - 30.000,00 HKD 12,820 944.535,18 0,22 0,22

Hong Kong

BEIJING ENTERPRISES HOLD LTD - 8.000,00 HKD 50,500 992.179,44 0,23 0,23

BELLE INTERNATIONAL HOLDINGS - 62.000,00 HKD 16,820 2.561.100,01 0,59 0,59

BRILIANCE CHINA AUTOMOTIVE - 38.200,00 HKD 9,540 894.994,97 0,21 0,21

CHINA MENGNIU DAIRY CO LTD - 17.000,00 HKD 22,000 918.502,75 0,21 0,21

CHINA MERCHANTS HLDGS INTL - 24.000,00 HKD 24,850 1.464.692,62 0,34 0,34

CHINA MOBILE LTD. - 70.500,00 HKD 90,250 15.625.905,19 3,61 3,59

CHINA NATIONAL BUILDING MATERI - 52.000,00 HKD 11,340 1.448.189,04 0,34 0,33

CHINA OVERSEAS LAND & INVEST LTD - 53.907,00 HKD 23,100 3.058.200,82 0,71 0,70

CHINA RESOURCES ENTERPRISE - 18.000,00 HKD 27,950 1.235.558,11 0,29 0,28

CHINA RESOURCES LAND - 31.000,00 HKD 21,100 1.606.397,45 0,37 0,37

CHINA RESOURCES POWER HOLDINGS CO - 26.000,00 HKD 19,780 1.263.014,95 0,29 0,29

CHINA UNICOM HONG KONG LTD - 59.374,00 HKD 12,420 1.811.034,66 0,42 0,42

CITIC PACIFIC LTD - 35.000,00 HKD 11,560 993.652,97 0,23 0,23

CNOOC LTD - 207.000,00 HKD 16,780 8.530.434,63 1,97 1,96

COSCO PACIFIC - 36.000,00 HKD 11,040 976.068,80 0,23 0,22

FOSUN INTERNATIONAL - 62.000,00 HKD 4,950 753.712,55 0,17 0,17

KINGBOARD CHEMICALS HOLDIGNS - 7.500,00 HKD 27,500 506.527,25 0,12 0,12

LENOVO GROUP LTD - 74.000,00 HKD 7,020 1.275.785,58 0,30 0,29

SHANGAI INDUSTRIAL HOLDING - 15.000,00 HKD 27,250 1.003.844,91 0,23 0,23

SINO-OCEAN LAND HOLDINGS LTD - 56.000,00 HKD 5,790 796.297,68 0,18 0,18

India

RELIANCE INDUSTRIES LTD SP GDR "144A" 7,00 USD 30,520 4.066,68 0,00 0,00

Total shares 194.738.349,64 44,99 44,71

TOTAL SECURITIES PORTFOLIO 432.824.850,23 100,00 99,36

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 528.168,66 EUR 1,000 13.254.920,88 3,04

TOTAL RECEIVED COLLATERAL 13.254.920,88 3,04

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CZK -164.133,20 CZK 1,000 -164.133,20 -0,04

KBC GROUP EURO -7.989,12 EUR 1,000 -200.494,96 -0,05

KBC GROUP GBP 983,81 GBP 1,000 30.439,77 0,01

KBC GROUP HKD -71.217,09 HKD 1,000 -174.901,32 -0,04

KBC GROUP USD 121.719,43 USD 1,000 2.316.953,00 0,53

Total demand accounts 1.807.863,29 0,42

TOTAL CASH AT BANK AND IN HAND 1.807.863,29 0,42

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP CZK RECEIVABLE 813.125,61 CZK 1,000 813.125,61 0,19

Total receivables 813.125,61 0,19

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-528.168,66 EUR 1,000 -13.254.920,88 -3,04

KBC GROUP CZK PAYABLE -52.052,02 CZK 1,000 -52.052,02 -0,01

Payables -13.306.972,90 -3,06

TOTAL RECEIVABLES AND PAYABLES -12.493.847,29 -2,87

OTHER

Interest receivable CZK 298.762,52 0,07

Accrued interest CZK 66.599,89 0,02

Expenses payable CZK -157.299,24 -0,04

TOTAL OTHER 208.063,17 0,05

TOTAL NET ASSETS 435.601.850,28 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium 0,05 0,18 0,16 0,27 Bermuda 0,21 0,22 0,34 0,33 Brazil 29,35 28,75 29,33 28,22 China 25,08 26,54 27,73 28,74 Cayman Islands 2,47 2,40 3,54 2,99 Hong Kong 10,63 11,60 12,49 12,21 India 12,38 14,11 11,78 11,60 Indonesia 0,00 0,00 0,07 0,07 Luxembourg 0,00 0,00 0,93 0,73 Russia 16,73 15,85 13,63 14,43 U.S.A. 3,10 0,35 0,00 0,41 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 42,63 40,11 37,74 36,36 Consum(cycl) 6,05 6,23 6,48 6,57 Cons.goods 6,12 6,96 7,76 7,86 Pharma 1,63 1,69 1,69 1,86 Financials 27,73 25,81 26,78 29,63 Technology 4,27 4,91 4,91 4,09 Telecomm. 5,44 7,50 7,11 6,70 Utilities 2,99 3,55 3,91 2,99 Real est. 3,04 3,14 3,50 3,83 Unit trusts 0,10 0,10 0,12 0,11 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 BRL 22,18 22,81 25,80 26,92 CNY 7,43 7,53 8,65 8,40 CZK 0,31 0,58 0,47 0,14 EUR 1,89 0,02 1,00 0,74 GBP 0,04 0,01 0,01 0,01 HKD 31,22 33,36 35,27 35,97 INR 12,34 14,05 11,82 11,80 USD 24,59 21,64 16,98 16,02 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND CSOB BRIC (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 101.161.545,16 87.912.422,43 189.073.967,59 Sales 81.261.315,77 81.063.009,24 162.324.325,01 Total 1 182.422.860,93 168.975.431,67 351.398.292,60 Subscriptions 47.466.333,09 35.877.872,98 83.344.206,07 Redemptions 27.544.262,46 30.815.091,06 58.359.353,52 Total 2 75.010.595,55 66.692.964,04 141.703.559,59 Monthly average of total assets

416.346.518,46 420.714.197,07 418.539.811,61

Turnover rate 25,80 % 24,31 % 50,10 %

1st half of year 2nd half of year YearPurchases 101.161.545,16 87.912.422,43 189.073.967,59 Sales 81.261.315,77 81.063.009,24 162.324.325,01 Total 1 182.422.860,93 168.975.431,67 351.398.292,60 Subscriptions 47.466.333,09 35.877.872,98 83.344.206,07 Redemptions 27.544.262,46 30.815.091,06 58.359.353,52 Total 2 75.010.595,55 66.692.964,04 141.703.559,59 Monthly average of total assets

408.380.599,89 416.323.948,33 414.105.480,09

Corrected turnover rate 26,30 % 24,57 % 50,64 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 528.168,66 13.254.920,88 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 176.788,63 0,00 96.375,38 0,00 471.558,11 0,00 471.558,11

2011 - 12 189.320,09 0,00 100.767,20 0,00 560.111,01 0,00 560.111,01

2012 - 12 116.373,73 0,00 81.814,07 0,00 594.670,67 0,00 594.670,67

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 140.703.940,94 0,00 77.437.384,54 0,00

2011 - 12 142.997.698,78 0,00 72.540.018,50 0,00

2012 - 12 83.641.183,89 0,00 58.507.311,40 0,00

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 405.909.071,92 860,78 N/A

2011 - 12 381.855.317,11 681,75 N/A

2012 - 12 435.601.850,28 732,51 N/A

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0947600079 EUR 7.65% -1.12% -5.39% 30/11/2007 -5.13%

CAP BE0947600079 CZK 5.93% -2.78% -6.48% 30/11/2007 -6.01%

DIV BE0947599065 EUR 30/11/2007

DIV BE0947599065 CZK 30/11/2007

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

The bar chart shows the performance for full financial years. 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

as a percentage. In the case of units that pay dividends, the dividend is incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

2.4.6 COSTS Total expense ratio (TER): * Distribution: Not applicable Capitalization: 1.843% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 1,828 1,085 59.35%

CSFBSAS 795 423 53.22%

MERRILL 927 571 61.55%

MORGAN STANLEY 1,463 825 56.37%

NOMURA 1,362 735 53.97%

UBSWDR 301 188 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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.

Name Maximum management feeHorizon-Access Fund Brazil 1,60 Horizon-Access Fund China-Classic Shares 1,60 Horizon-Access Fund Russia 1,60 Horizon-Access India Fund-Classic Shares 1,60 KBC Equity Fund-CSOB BRIC 1,50

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 872.994,27 CZK. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ALUMINUM CORP OF CHINA LTD -H- HKD 123.999 3,550 1.081.073,94

BANK OF COMMUNICATIONS CO -H- HKD 69.894 5,840 1.002.447,42

CHINA MERCHANTS BANK CO LTD -H- HKD 51.210 17,100 2.150.600,47

CHINA UNICOM HONG KONG LTD HKD 59.373 12,420 1.811.004,15

COSCO PACIFIC HKD 35.999 11,040 976.041,66

GCL POLY ENERGY HOLDINGS LTD HKD 126.999 1,560 486.556,98

GREAT WALL MOTOR CO LTD -H- HKD 13.399 24,450 804.563,20

KUNLUN ENERGY COMPANY LTD HKD 35.999 16,180 1.430.466,98

SHIMAO PROPERTY HOLDINGS LTD HKD 23.999 14,620 861.686,72

SINO-OCEAN LAND HOLDINGS LTD HKD 55.999 5,790 796.283,53

ZIJIN MINING GROUP CO -H- HKD 115.491 3,050 865.081,20

Total 12.265.806,25

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 2.000 CZK 61.324,79

FRANCE 2003 2,25% 25/07/2020 EUR 51.000 CZK 1.862.316,51

FRANCE 2004 1,60% 25/07/2015 EUR 107.000 CZK 3.450.579,89

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 233.000 CZK 6.446.559,49

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 51.000 CZK 1.434.140,11

Total 13.254.920,79 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund CSOB Akciovy Fond Dividendovych Firem

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND CSOB AKCIOVY FOND DIVIDENDOVYCH FIREM

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 28 September 2012 Initial subscription price: 1000 CZK Currency: CZK

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED KBC Equity Fund CSOB Akciovy Fond Dividendovych Firem aims to generate a return by investing at least 75% of its assets in shares with a high dividend yield. All regions, sectors and themes may be taken into consideration. The rest of the assets will be invested in bonds, debt instruments, money market instruments and deposits.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund CSOB Akciovy Fond Dividendovych Firem launched on 02nd October 2012. The NAV of KBC Equity Fund New Share rising from CZK 988.70 on 02nd October 2012 to CZK 1000.78 on 28th December 2012. The fourth quarter was an eventful one, with the US taking the spotlight from the Eurozone. A hard-fought presidential election saw President Obama retain the presidency, and markets focused very much on efforts to avert the “fiscal cliff” – a series of sharp tax increases and spending cuts which were due to come into effect on January 1st if no agreement could be reached on how to defer them. In Europe, it was a period of (relative) calm, with the main events being a new rescue package being agreed for Greece, and a slightly earlier than expected end to the cross-party government in Italy. In China, a new leadership team was announced, and growth seemed to rebound somewhat. Indeed, with the exception of the Eurozone where a recession continued, growth around the world held up quite well during the quarter. The fund outperformed global equities over the final quarter of 2012. This was a positive outcome because from a style point of view, high dividends were mostly out of favour during the final quarter with poor relative performance in all regions for high yielding stocks in general. Avoiding traditional yield traps through our all industry, all region approach to investing in high dividends enhanced the Fund’s return over the quarter. Our focus on buying stocks with strong balance sheets and an ability to sustain and potentially grow that dividend were the main drivers of the Fund’s outperformance during the period under review.

2.1.8 FUTURE POLICY Our expectation for 2013 is that we will see another positive year for market returns, although we don’t expect that returns will hit double digits for the second consecutive year. The global macro background remains fragile and volatile, contrasting with the corporate sector which remains robust as companies deliver solid and consistent earnings and dividend growth. In light of the challenging macro conditions the global economy still requires a highly supportive policy-making framework with central banks and politicians ensuring measures are in place to underpin the weak macro environment. These policy measures will remain the key support mechanism until we have a less fragile and more positive and sustained global growth environment. For the first half of the year, at least, we expect that the pivotal support role played by global authorities will remain necessary. But this should fade into the background in the later part of the year as global growth becomes more robust and sustainable. As political and economic uncertainty diminishes through the year, it is reasonable to expect a more material pickup in growth and indeed there is a scenario whereby growth in the US economy in particular could surprise to the upside. Stock picking will be increasingly important as those companies that continue to deliver solid earnings above the more anaemic economic growth levels will continue to be rewarded. The search for yield and income will remain a prevalent theme so a key focus for stock picking should be on companies that are delivering high, growing, and sustainable dividends.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

TOTAL NET ASSETS 176.560.730,96

II. Securities, money market instruments, UCIs and derivatives

C. Shares and similar instruments a) Shares 171.792.621,47 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) 68.123,14

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 189.137.224,80 b) Tax assets 12.852,16 B. Payables a) Accounts payable (-) -187.616.899,11 c) Borrowings (-) -18.877.816,03

V. Deposits and cash at bank and in hand A. Demand balances at banks 21.972.394,44

VI. Accruals and deferrals B. Accrued income 232.396,86 C. Accrued expense (-) -160.166,77

TOTAL SHAREHOLDERS' EQUITY 176.560.730,96

A. Capital 174.382.096,70

B. Income equalization -17.472,96

D. Result for the period 2.196.107,22

Off-balance-sheet headings

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 104.407.505,70

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 4.783.759,14 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts 68.123,14 b) Other foreign exchange positions and

transactions -2.772.648,22

II. Investment income and expenses A. Dividends 1.135.020,31 B. Interests b) Cash at bank and in hand and deposits 2.112,28 C. Interest on borrowings (-) -7.919,06

IV. Operating expenses A. Investment transaction and delivery costs (-) -296.410,84 B. Financial expenses (-) -2.479,81 D. Manager's fee (-) a) Financial management -586.516,58 b) Administration and accounting management -40.128,81 F. Formation and organisation expenses (-) -728,62 H. Services and sundry goods (-) -1.155,08 J. Taxes -1.824,84 K. Other expenses (-) -83.095,79

Income and expenditure for the period Subtotal II + III + IV 116.873,16

V. Profit (loss) on ordinary activities before tax 2.196.107,22

VII. Result for the period 2.196.107,22

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

I. Profit to be appropriated 2.178.634,26 Profit for the period available for appropriation 2.196.107,22 Income on the creation of shares (income on the

cancellation of shares) -17.472,96

II. (Appropriations to) Deductions from capital -2.178.634,26

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND CSOB AKCIOVY FOND

DIVIDENDOVYCH FIREM

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

AGL ENERGY LIMITED - 3.050,00 AUD 15,380 927.024,39 0,54 0,53

ANZ BANKING GROUP - 2.988,00 AUD 25,050 1.479.187,78 0,86 0,84

COMMONWEALTH BK OF AUSTRALIA - 1.278,00 AUD 62,180 1.570.422,68 0,91 0,89

MIRVAC GROUP - 37.968,00 AUD 1,485 1.114.241,07 0,65 0,63

NATIONAL AUSTRALIA BANK - 3.068,00 AUD 25,000 1.515.759,68 0,88 0,86

RIO TINTO LTD - 911,00 AUD 66,010 1.188.401,24 0,69 0,67

Belgium

BELGACOM - 2.529,00 EUR 22,205 1.409.302,16 0,82 0,80

Canada

C.I.B.C. - 841,00 CAD 79,970 1.285.766,53 0,75 0,73

CANADIAN OIL SANDS LTD - 4.716,00 CAD 20,170 1.818.522,67 1,06 1,03

GREAT-WEST LIFECO INC. - 2.112,00 CAD 24,350 983.177,44 0,57 0,56

IGM FINANCIAL INC - 5.000,00 CAD 41,600 3.976.512,58 2,31 2,25

POWER CORP - 2.348,00 CAD 25,380 1.139.275,44 0,66 0,65

POWER FINANCIAL CORP - 3.286,00 CAD 27,240 1.711.250,89 1,00 0,97

ROGERS COMM. "B" 1.572,00 CAD 45,160 1.357.205,15 0,79 0,77

ROYAL BK CANADA - 1.082,00 CAD 59,880 1.238.648,49 0,72 0,70

SHAW COMMUNICATIONS INC "B" 4.391,00 CAD 22,840 1.917.337,48 1,12 1,09

Cayman Islands

SEAGATE TECHNOLOGY - 6.892,00 USD 30,480 3.998.688,25 2,33 2,27

Finland

UPM-KYMMENE CORP - 9.596,00 EUR 8,805 2.120.430,84 1,23 1,20

France

BOUYGUES - 4.004,00 EUR 22,400 2.250.850,23 1,31 1,28

SANOFI - 586,00 EUR 71,390 1.049.879,63 0,61 0,60

TOTAL - 1.861,00 EUR 39,010 1.821.909,65 1,06 1,03

VIVENDI - 3.061,00 EUR 16,950 1.302.079,63 0,76 0,74

Germany

BASF SE - 1.280,00 EUR 71,150 2.285.542,94 1,33 1,29

PROSIEBEN SAT.1 MEDIA AG PREF 2.730,00 EUR 21,300 1.459.307,32 0,85 0,83

Hong Kong

NWS HOLDINGS LTD - 31.000,00 HKD 13,100 997.336,81 0,58 0,57

Italy

E.N.E.L. - 24.738,00 EUR 3,138 1.948.148,40 1,13 1,10

ENI - 3.007,00 EUR 18,340 1.384.003,76 0,81 0,78

Japan

CANON INC - 1.300,00 JPY 3.340,000 955.849,40 0,56 0,54

DAIHATSU MOTOR CO LTD - 3.000,00 JPY 1.711,000 1.129.980,42 0,66 0,64

DAITO TRUST CONSTRUCTION - 500,00 JPY 8.150,000 897.071,93 0,52 0,51

EISAI CO. - 1.200,00 JPY 3.600,000 951.006,32 0,55 0,54

MITSUI & CO - 4.700,00 JPY 1.283,000 1.327.468,33 0,77 0,75

NIPPON EXPRESS CO LTD - 15.000,00 JPY 355,000 1.172.247,37 0,68 0,66

RICOH CO - 4.000,00 JPY 907,000 798.669,19 0,47 0,45

SANKYO CO LTD GUNMA - 1.200,00 JPY 3.425,000 904.776,84 0,53 0,51

SUMITOMO CORP - 6.400,00 JPY 1.100,000 1.549.788,07 0,90 0,88

SUMITOMO METAL MINING - 4.000,00 JPY 1.208,000 1.063.718,18 0,62 0,60

SUMITOMO MITSUI FINANCIAL GROUP INC - 2.500,00 JPY 3.115,000 1.714.342,98 1,00 0,97

TOYOTA INDUSTRIES CORP. - 2.400,00 JPY 2.731,000 1.442.887,92 0,84 0,82

Netherlands

BOSKALIS WESTMINSTER (AMS) 2.372,00 EUR 34,000 2.023.942,24 1,18 1,15

KON. AHOLD - 4.595,00 EUR 10,135 1.168.728,89 0,68 0,66

New Zealand

FLECHTER BUILDING LTD - 7.900,00 NZD 8,390 1.040.853,51 0,61 0,59

Norway

AKER KVAERNER ASA - 1.949,00 NOK 112,900 752.627,23 0,44 0,43

DNB ASA - 4.411,00 NOK 70,400 1.062.145,14 0,62 0,60

GJENSIDIGE FORSIKRING ASA - 4.277,00 NOK 79,400 1.161.539,28 0,68 0,66

STATOIL - 3.384,00 NOK 139,000 1.608.863,89 0,94 0,91

Spain

ENAGAS - 2.266,00 EUR 16,140 917.842,04 0,53 0,52

Sweden

INVESTOR AB "B" 3.254,00 SEK 170,000 1.618.622,95 0,94 0,92

SWEDBANK - 4.124,00 SEK 127,000 1.532.503,95 0,89 0,87

Switzerland

ADECCO SA CHESEREX REG 780,00 CHF 48,040 779.232,06 0,45 0,44

NESTLE AG REG 1.985,00 CHF 59,600 2.460.231,53 1,43 1,39

U.K.

ASTRAZENECA PLC - 5.657,00 GBP 29,095 5.092.542,39 2,96 2,88

BAT HOLDINS BV - 4.155,00 GBP 31,210 4.012.313,96 2,34 2,27

HSBC HOLDING PLC - 7.411,00 GBP 6,469 1.483.351,51 0,86 0,84

RECKITT BENCKISER PLC - 770,00 GBP 38,790 924.146,06 0,54 0,52

STANDARD LIFE PLC - 20.907,00 GBP 3,321 2.148.279,12 1,25 1,22

TUI TRAVEL PLC - 13.045,00 GBP 2,825 1.140.230,49 0,66 0,65

VODAFONE GROUP PLC - 20.650,00 GBP 1,545 986.820,31 0,57 0,56

U.S.A.

ACCENTURE LTD "A" 1.948,00 USD 66,500 2.465.857,14 1,44 1,40

ANNALY CAPITAL MANAGEMENT INC - 8.833,00 USD 14,040 2.360.655,72 1,37 1,34

AT&T INC - 4.337,00 USD 33,710 2.782.950,55 1,62 1,58

BAXTER INTL INC - 818,00 USD 66,660 1.037.948,79 0,60 0,59

BEST BUY - 6.982,00 USD 11,850 1.574.909,16 0,92 0,89

BRISTOL-MYERS SQUIBB CO - 2.266,00 USD 32,590 1.405.728,92 0,82 0,80

C.H. ROBINSON WORLDWIDE INC. - 1.500,00 USD 63,220 1.805.107,48 1,05 1,02

CARDINAL HEALTH INC - 920,00 USD 41,180 721.159,76 0,42 0,41

CHEVRON CORP - 1.535,00 USD 108,140 3.159.745,18 1,84 1,79

COMPUTER SCIENCES - 1.127,00 USD 40,050 859.179,19 0,50 0,49

CONOCOPHILLIPS - 3.517,00 USD 57,990 3.882.243,68 2,26 2,20

DEERE & COMPANY - 859,00 USD 86,420 1.413.073,46 0,82 0,80

DU PONT DE NEMOURS - 1.709,00 USD 44,970 1.462.925,69 0,85 0,83

EATON CORP. - 968,00 USD 54,200 998.692,89 0,58 0,57

EATON VANCE CORP - 6.662,00 USD 31,850 4.038.977,00 2,35 2,29

EMERSON ELECTRIC CO - 1.022,00 USD 52,960 1.030.282,18 0,60 0,58

ENTERGY CORPORATION - 1.409,00 USD 63,750 1.709.812,54 1,00 0,97

EXXON MOBIL CORP - 2.296,00 USD 86,550 3.782.650,97 2,20 2,14

GAP INC - 1.298,00 USD 31,040 766.926,46 0,45 0,43

GENERAL ELEC CAP CORP - 4.158,00 USD 20,990 1.661.323,61 0,97 0,94

H&R BLOCK, INC. - 4.536,00 USD 18,570 1.603.401,42 0,93 0,91

HARRIS CORP - 3.041,00 USD 48,960 2.834.099,83 1,65 1,61

LILLY (ELI) & CO - 6.442,00 USD 49,320 6.047.851,28 3,56 3,43

LORILLARD INC - 2.209,00 USD 116,670 4.905.826,99 2,86 2,78

M&T BANK CORP - 691,00 USD 98,470 1.295.207,35 0,75 0,73

MARATHON PETROLEUM CORP - 681,00 USD 63,000 816.666,94 0,48 0,46

MAXIM INTEGRATED PRODUCTS - 2.201,00 USD 29,400 1.231.756,00 0,72 0,70

MEADWESTVACO CORP - 2.616,00 USD 31,870 1.587.000,70 0,92 0,90

MICROSOFT CORP - 5.503,00 USD 26,730 2.799.985,53 1,63 1,59

MOTOROLA SOLUTIONS INC - 990,00 USD 55,680 1.049.280,82 0,61 0,59

NUCOR CORPORATION - 1.139,00 USD 43,180 936.189,31 0,55 0,53

PFIZER - 3.279,00 USD 25,080 1.565.403,37 0,91 0,89

PITNEY BOWES - 6.179,00 USD 10,640 1.251.460,48 0,73 0,71

PROCTER & GAMBLE - 762,00 USD 67,890 984.732,10 0,57 0,56

RAYONIER INC - 1.356,00 USD 51,830 1.337.821,63 0,78 0,76

REYNOLDS AMERICAN INC - 2.061,00 USD 41,430 1.625.362,52 0,95 0,92

ROCKWELL AUTOMATION CORP - 942,00 USD 83,990 1.506.037,54 0,88 0,85

SAFEWAY INC. - 12.228,00 USD 18,090 4.210.671,02 2,45 2,39

SPECTRA ENERGY CORP - 3.091,00 USD 27,380 1.610.978,57 0,94 0,91

TIME WARNER INC - 910,00 USD 47,830 828.512,54 0,48 0,47

TOTAL SYSTEMS SERVICES - 1.930,00 USD 21,420 786.926,35 0,46 0,45

WEST UNION COMPANY - 3.800,00 USD 13,610 984.462,18 0,57 0,56

Total shares 171.792.621,47 99,96 97,30

Forward contracts CZK 68.123,14 0,04

TOTAL SECURITIES PORTFOLIO 171.860.744,61 100,00 97,34

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 8.829,15 AUD 1,000 174.483,31 0,10

KBC GROUP CAD 9.938,20 CAD 1,000 189.997,01 0,11

KBC GROUP CHF 5.968,67 CHF 1,000 124.121,43 0,07

KBC GROUP CZK 20.343.513,12 CZK 1,000 20.343.513,12 11,52

KBC GROUP EURO -752.224,09 EUR 1,000 -18.877.816,03 -10,69

KBC GROUP GBP 3.926,77 GBP 1,000 121.497,01 0,07

KBC GROUP HKD 57.891,17 HKD 1,000 142.174,33 0,08

KBC GROUP JPY 525.693,00 JPY 1,000 115.726,24 0,07

KBC GROUP NOK 33.776,76 NOK 1,000 115.529,30 0,07

KBC GROUP NZD 2.825,60 NZD 1,000 44.372,23 0,03

KBC GROUP SEK 85.968,36 SEK 1,000 251.546,26 0,14

KBC GROUP USD 18.357,27 USD 1,000 349.434,20 0,20

Total demand accounts 3.094.578,41 1,75

TOTAL CASH AT BANK AND IN HAND 3.094.578,41 1,75

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP CZK RECEIVABLE 85.760.799,97 CZK 1,000 85.760.799,97 48,57

KBC GROUP EUR RECEIVABLE 772.000,00 EUR 1,000 19.374.112,28 10,97

KBC GROUP USD RECEIVABLE 4.413.000,00 USD 1,000 84.002.312,55 47,58

KBC GROUP WHT TO BE RECOVERED EUR 512,12 EUR 1,000 12.852,16 0,01

Total receivables 189.150.076,96 107,13

Payables

Belgium

KBC GROUP CAD PAYABLE -7.831,47 CAD 1,000 -149.720,86 -0,09

KBC GROUP CZK PAYABLE -103.464.865,70 CZK 1,000 -103.464.865,70 -58,60

KBC GROUP USD PAYABLE -4.413.000,00 USD 1,000 -84.002.312,55 -47,58

Payables -187.616.899,11 -106,26

TOTAL RECEIVABLES AND PAYABLES 1.533.177,85 0,87

OTHER

Interest receivable CZK 232.396,86 0,13

Expenses payable CZK -160.166,77 -0,09

TOTAL OTHER 72.230,09 0,04

TOTAL NET ASSETS 176.560.730,96 100,00

Geographic breakdown (as a % of securities portfolio)

31/12/2012Australia 4,54 Belgium 0,84 Canada 8,98 Switzerland 1,89 Germany 2,18 Spain 0,53 Finland 1,23 France 3,74 U.K. 9,19 Hong Kong 0,58 Italy 1,94 Japan 8,09 Netherlands 1,86 Norway 2,67 New Zealand 0,61 Sweden 1,83 U.S.A. 49,30 Total 100,00

Sector breakdown (as a % of securities portfolio)

31/12/2012Cyclicals 24,39 Consum(cycl) 12,31 Cons.goods 12,06 Pharma 10,40 Financials 19,59 Technology 10,92 Telecomm. 5,11 Utilities 3,20 Real est. 2,02 Total 100,00

Currency breakdown (as a % of net assets)

31/12/2012AUD 4,52 CAD 8,77 CHF 1,91 CZK 60,65 EUR 0,31 GBP 9,02 HKD 0,65 JPY 7,95 NOK 2,66 NZD 0,61 SEK 1,93 USD 1,02 Total 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND CSOB AKCIOVY

FOND DIVIDENDOVYCH FIREM (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 0,00 181.633.441,09 181.633.441,09 Sales 0,00 12.156.595,51 12.156.595,51 Total 1 0,00 193.790.036,60 193.790.036,60 Subscriptions 0,00 174.424.859,89 174.424.859,89 Redemptions 0,00 42.763,19 42.763,19 Total 2 0,00 174.467.623,08 174.467.623,08 Monthly average of total assets

0,00 157.936.483,43 157.936.483,43

Turnover rate 0,00 % 12,23 % 12,23 %

1st half of year 2nd half of year YearPurchases 0,00 181.633.441,09 181.633.441,09 Sales 0,00 12.156.595,51 12.156.595,51 Total 1 0,00 193.790.036,60 193.790.036,60 Subscriptions 0,00 174.424.859,89 174.424.859,89 Redemptions 0,00 42.763,19 42.763,19 Total 2 0,00 174.467.623,08 174.467.623,08 Monthly average of total assets

0,00 123.949.025,08 123.949.025,08

Corrected turnover rate 0,00 % 15,59 % 15,59 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC AK-VK CZK-EUR 130204-130103 25.0989

CZK 21.108.174,90 21.108.174,90 N/A 31.12.2012

KBC AK-VK CZK-USD 130204-130103 19.0442

CZK 83.299.330,80 83.299.330,80 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2012 - 12 174.833,86 0,00 42,73 0,00 174.791,13 0,00 174.791,13

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2012 - 12 174.407.453,74 0,00 42.830,00 0,00

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2012 - 12 176.560.730,96 1.010,12 N/A

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

2.4.6 COSTS Total expense ratio (TER): Not applicable

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Belgium

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND BELGIUM

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 1 October 1991 Initial subscription price: 5000 BEF Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of Belgian companies.

RISK CONCENTRATION Belgian shares.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Real GDP in the EMU contracted by an annualised 0.3%. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany played its traditional role as European economic engine to a lesser extent than in the recent past. Greater divergence within Europe resulted primarily in a further decline in unemployment in Germany and an alarmingly rapid rise in joblessness in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. The European debt crisis continued to hang over the economy of the EMU in 2012 like the sword of Damocles. Following the ECB's long-term refinancing operations (LTROs) of December 2011 and February 2012, it appeared for a short while as though the central bank had pumped enough cash into the financial markets to take away the uncertainty for a time, but the numbing effect of these LTROs proved to be short lived. The flaring up of problems with the banks in Spain and speculation about Greece exiting the euro area caused the crisis to explode again in the second quarter of 2012. During the summer months the Belgian shares responded positively to the statement by Mario Draghi, the President of the European Central Bank, that the euro would be defended at any cost. In September the ECB launched its Outright Monetary Transactions (OMT) programme, under which unlimited purchases will be made of short-dated (up to three years) government bonds issued by struggling countries, provided certain conditions are met. Following a consolidation the Bel20 continued its rally in the second half of the fourth quarter. KBC Equity Fund Belgium shareholders obtained a positive return (in euros) of more than 25% in 2012. The fund performed better than the Bel20 index thanks to the relatively good performance of, among others, Thrombogenics, Econocom and Jensen. The underweight positions in AB InBev and Solvay and the overweight position in D’Ieteren adversely affected the relative performance of the fund. Within the Bel20 KBC and Ageas recorded the strongest performance. Solvay and AB InBev, which acquired the Mexican market leader Modelo, were once again star performers. D’Ieteren, Mobistar and especially Delhaize, which is grappling with structural problems in its two main markets, were the main disappointments during the period under review.

2.1.8 FUTURE POLICY Europe remains in a low-growth environment, with no underlying inflationary pressure, low interest rates and runaway public finances. The need to strengthen its internal mechanisms is becoming a matter of urgency for the euro area. This involves measures such as supranational supervision of banks, strict monitoring and sanctioning of budgetary policy, monitoring of pay policy and harmonising European taxation. There is no urgent macroeconomic reason to increase the exceptionally low money market rates so long as the economic situation in the West remains weak and there is no sign of any real inflationary pressures. Against this background KBC Equity Fund Belgium is overweighting a number of attractively valued companies in various sectors, such as Tessenderlo Chemie, CFE, EVS, Melexis and Kinepolis. Food distributors and the telecom sector are underweighted. The evolution of the European debt crisis and the associated credibility of the euro remain crucial to share price trends in the European and Belgian banking sectors. This problem remains as serious as ever due to the approach adopted by European leaders. We will be monitoring this closely.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 36.137.904,49 38.981.381,69

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 167.700,80 198.526,50 a} Collateral received in the form of bonds 92.687,90 89.535,86 C. Shares and similar instruments a) Shares 35.110.087,58 38.019.368,86 Of which securities lent 85.750,00 97.157,20 b) Closed-end undertakings for collective

investment 108.351,30 85.329,00

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 26.997,01 2.229,86 b) Tax assets 684.264,92 664.386,55 B. Payables a) Accounts payable (-) -19.924,90 -0,20 d) Collateral (-) -92.687,90 -89.535,86

V. Deposits and cash at bank and in hand A. Demand balances at banks 102.023,21 39.859,24

VI. Accruals and deferrals A. Expense to be carried forward 1.859,92 B. Accrued income 2.324,93 8.467,58 C. Accrued expense (-) -43.920,36 -38.645,62

TOTAL SHAREHOLDERS' EQUITY 36.137.904,49 38.981.381,69

A. Capital 15.729.941,93 26.906.403,09

B. Income equalization -264.347,43 -54.938,90

C. Profit(Loss) carried forward 11.972.356,82 21.352.350,65

D. Result for the period 8.699.953,17 -9.222.433,15

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 92.687,90 89.535,86

IX Financial instruments lent 85.750,00 97.157,20

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -30.825,70 224,80 C. Shares and similar instruments a) Shares 7.802.024,29 -10.101.192,84 b) Closed-end undertakings for collective

investment 17.767,41 -8.751,99

D. Other securities -0,67 -6,43 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -0,42 -0,51

II. Investment income and expenses A. Dividends 1.547.142,22 1.663.238,23 B. Interests a) Securities and money market instruments 52.612,70 39.752,59 b) Cash at bank and in hand and deposits 1.495,33 675,70 C. Interest on borrowings (-) -1.101,70 -5.836,85

III. Other income B. Other 2.468,88

IV. Operating expenses A. Investment transaction and delivery costs (-) -67.103,34 -67.183,48 B. Financial expenses (-) -517,23 -3.480,59 C. Custodian's fee (-) -32.502,48 -40.404,24 D. Manager's fee (-) a) Financial management -515.724,88 -597.162,27 b) Administration and accounting management -38.938,32 -46.367,40 E. Administrative expenses (-) -437,98 -215,29 F. Formation and organisation expenses (-) -3.360,93 -5.039,79 G. Remuneration, social security charges and

pension -3,28 -10,32

H. Services and sundry goods (-) -7.572,62 -9.822,42 J. Taxes -16.712,55 -34.032,14 K. Other expenses (-) -6.286,68 -9.286,79

Income and expenditure for the period Subtotal II + III + IV 910.988,26 887.293,82

V. Profit (loss) on ordinary activities before tax 8.699.953,17 -9.222.433,15

VII. Result for the period 8.699.953,17 -9.222.433,15

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 20.407.962,56 12.074.978,60 Profit (loss) brought forward from the previous

financial year 11.972.356,82 21.352.350,65

Profit for the period available for appropriation 8.699.953,17 -9.222.433,15 Income on the creation of shares (income on the

cancellation of shares) -264.347,43 -54.938,90

II. (Appropriations to) Deductions from capital -20.295.332,28

III. Profit (loss) to be carried forward 11.972.356,82

IV. (Dividends to be paid out) -112.630,28 -102.621,78

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND BELGIUM

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Closed-end funds

Listed closed-end investment funds

Belgium

QUEST FOR GROWTH - 19.009,00 EUR 5,700 108.351,30 0,31 0,30

Total investment funds 108.351,30 0,31 0,30

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 281.000,00 EUR 59,680 167.700,80 0,47 0,46

Total bonds 167.700,80 0,47 0,46

Shares

Exchange-listed shares

Belgium

ABLYNX - 10.705,00 EUR 5,850 62.624,25 0,18 0,17

ABLYNX STRIP-VVPR 35.000,00 EUR 0,001 35,00

ACKERMANS VH NV - 12.519,00 EUR 62,270 779.558,13 2,20 2,16

AGEAS NV - 145.442,00 EUR 22,215 3.230.994,03 9,13 8,94

AGFA GEVAERT - 102.418,00 EUR 1,330 136.215,94 0,39 0,38

AGFA GEVAERT STRIP VVPR 20.000,00 EUR 0,001 20,00

ALFACAM GROUP - 900,00 EUR 1,050 945,00 0,00 0,00

ANHEUSER-BUSCH INBEV NV - 36.786,00 EUR 65,740 2.418.311,64 6,83 6,69

ANHEUSER-BUSCH INBEV NV STRIP-VVPR 34.904,00 EUR 0,001 34,90

ARSEUS NV - 31.096,00 EUR 15,500 481.988,00 1,36 1,33

ARSEUS NV STRIP VVPR 6.633,00 EUR 0,001 6,63

BARCO NV NEW 9.544,00 EUR 54,500 520.148,00 1,47 1,44

BEFIMMO - 6.717,00 EUR 48,830 327.991,11 0,93 0,91

BEKAERT - 27.166,00 EUR 21,875 594.256,25 1,68 1,64

BELGACOM - 51.924,00 EUR 22,205 1.152.972,42 3,26 3,19

C.F.E. (BRU) 15.152,00 EUR 43,840 664.263,68 1,88 1,84

C.M.B. - 2.645,00 EUR 14,360 37.982,20 0,11 0,11

COFINIMMO - 5.564,00 EUR 89,600 498.534,40 1,41 1,38

COLRUYT - 14.912,00 EUR 37,500 559.200,00 1,58 1,55

D'IETEREN - 18.351,00 EUR 30,440 558.604,44 1,58 1,55

DECEUNINCK - 109.749,00 EUR 1,160 127.308,84 0,36 0,35

DELHAIZE GROEP - 56.564,00 EUR 30,250 1.711.061,00 4,84 4,74

DEVGEN STRIP-VVPR 40.000,00 EUR 0,000 4,00

ECODIS - 1.892,00 EUR 0,070 132,44

ECONOCOM GROUP - 66.800,00 EUR 5,950 397.460,00 1,12 1,10

ELIA SYSTEM OPERATOR - 16.522,00 EUR 34,200 565.052,40 1,60 1,56

EURONAV SA - 59.643,00 EUR 4,590 273.761,37 0,77 0,76

EVS BROADCAST EQUIPMENT (BRU) 12.450,00 EUR 44,400 552.780,00 1,56 1,53

FINANCIERE DE TUBIZE (BRU) 39.788,00 EUR 32,260 1.283.560,88 3,63 3,55

G.B.L. (BRU) STRIP-VVPR 5.600,00 EUR 0,001 5,60

G.B.L. - 25.524,00 EUR 60,140 1.535.013,36 4,34 4,25

GALAPAGOS GENOMICS NV - 18.454,00 EUR 15,810 291.757,74 0,82 0,81

IBA ION BEAM (BRU) STRIP-VVPR 1.350,00 EUR 0,001 1,35

IBA ION BEAM - 46.187,00 EUR 5,530 255.414,11 0,72 0,71

JENSEN-GROUP NV (BRU) 36.104,00 EUR 11,550 417.001,20 1,18 1,15

KBC ANCORA - 69.255,00 EUR 12,950 896.852,25 2,53 2,48

KBC GROUP - 65.824,00 EUR 26,150 1.721.297,60 4,86 4,76

KINEPOLIS GROUP (BRU) 6.167,00 EUR 81,990 505.632,33 1,43 1,40

MDXHEALTH - 15.714,00 EUR 2,000 31.428,00 0,09 0,09

MELEXIS NV - 37.473,00 EUR 12,880 482.652,24 1,36 1,34

MOBISTAR - 17.664,00 EUR 19,390 342.504,96 0,97 0,95

NYRSTAR - 164.943,00 EUR 4,494 741.253,84 2,10 2,05

NYRSTAR STRIP VVPR 22.554,00 EUR 0,001 22,55

PUNCH INTERNATIONAL (BRU) 40.141,00 EUR 3,270 131.261,07 0,37 0,36

PUNCH INTERNATIONAL VVPR STRIP 15.660,00 EUR 0,003 46,98

REALDOLMEN (BRU) 70,00 EUR 0,110 7,70

REALDOLMEN BONUS 01/04/09 12.217,00 EUR 16,500 201.580,50 0,57 0,56

REALDOLMEN STRIP VVPR BONUS 01/04/09 1.860,00 EUR 0,001 1,86

REALDOLMEN STRIP-VVPR 80,00 EUR 0,001 0,08

RECTICEL - 61.352,00 EUR 5,270 323.325,04 0,91 0,90

RHJ INTERNATIONAL - 35.494,00 EUR 3,990 141.621,06 0,40 0,39

ROULARTA MEDIA GROUP (BRU) STRIP-VVPR 2.500,00 EUR 0,001 2,50

ROULARTA MEDIA GROUP - 11.643,00 EUR 10,320 120.155,76 0,34 0,33

SIOEN INDUSTRIES - 33.015,00 EUR 6,600 217.899,00 0,62 0,60

SOFTIMAT (BRU) 14.993,00 EUR 3,360 50.376,48 0,14 0,14

SOLVAY - 27.088,00 EUR 109,350 2.962.072,80 8,37 8,20

SPECTOR (BRU) STRIP-VVPR 270.279,00 EUR 0,001 270,28 0,00 0,00

TELENET - 9.274,00 EUR 35,650 330.618,10 0,93 0,92

TELENET STRP-VVPR 81.900,00 EUR 0,001 81,90

TESSENDERLO (BRU) STRIP-VVPR 1.605,00 EUR 0,008 12,84

TESSENDERLO - 29.158,00 EUR 24,840 724.284,72 2,05 2,00

THROMBOGENICS NV - 632,00 EUR 42,050 26.575,60 0,08 0,07

THROMBOGENICS NV STRIP-VVPR 46.450,00 EUR 0,002 92,90

U.C.B. - 19.226,00 EUR 43,220 830.947,72 2,35 2,30

UMICORE - 53.582,00 EUR 41,690 2.233.833,58 6,31 6,18

VAN DE VELDE - 2.697,00 EUR 34,200 92.237,40 0,26 0,26

ZETES INDUSTRIES SA - 24.362,00 EUR 15,020 365.917,24 1,03 1,01

France

GDF SUEZ - 136.417,00 EUR 15,575 2.124.694,78 6,00 5,88

GDF SUEZ STRIP VVPR 910.205,00 EUR 0,001 910,21 0,00 0,00

GLOBAL GRAPHICS - 65.281,00 EUR 1,130 73.767,53 0,21 0,20

TOTAL (BRU) STRIP-VVPR 441.288,00 EUR 0,001 441,29 0,00 0,00

Germany

HEIDELBERGCEMENT AG STRIP-VVPR 40.658,00 EUR 0,010 406,58 0,00 0,00

Total shares 35.110.087,58 99,22 97,16

TOTAL SECURITIES PORTFOLIO 35.386.139,68 100,00 97,92

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 92.687,90 EUR 1,000 92.687,90 0,26

TOTAL RECEIVED COLLATERAL 92.687,90 0,26

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO 101.987,99 EUR 1,000 101.987,99 0,28

KBC GROUP GBP 2,22 GBP 1,000 2,74

KBC GROUP USD 42,82 USD 1,000 32,48

Total demand accounts 102.023,21 0,28

TOTAL CASH AT BANK AND IN HAND 102.023,21 0,28

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 26.997,01 EUR 1,000 26.997,01 0,08

KBC GROUP WHT TO BE RECOVERED EUR 684.264,92 EUR 1,000 684.264,92 1,89

Total receivables 711.261,93 1,97

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -92.687,90 EUR 1,000 -92.687,90 -0,26

KBC GROUP EUR PAYABLE -19.924,90 EUR 1,000 -19.924,90 -0,06

Payables -112.612,80 -0,31

TOTAL RECEIVABLES AND PAYABLES 598.649,13 1,66

OTHER

Accrued interest EUR 2.324,93 0,01

Expenses payable EUR -43.920,36 -0,12

TOTAL OTHER -41.595,43 -0,12

TOTAL NET ASSETS 36.137.904,49 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium 91,42 90,17 88,64 93,31 France 8,58 9,31 10,46 6,22 Ireland 0,00 0,52 0,45 0,47 Luxembourg 0,00 0,00 0,45 0,00 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 23,67 19,98 20,58 27,78 Consum(cycl) 3,08 4,43 4,16 4,32 Cons.goods 15,81 17,29 17,63 14,83 Pharma 9,29 9,32 7,28 5,98 Financials 24,91 21,12 24,38 27,57 Technology 4,89 5,77 5,75 5,70 Telecomm. 8,83 10,96 8,06 5,16 Utilities 7,81 9,13 9,90 6,01 Real est. 1,50 1,78 2,04 2,34 Unit trusts 0,21 0,22 0,22 0,31 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 EUR 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND BELGIUM (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 20.292.572,26 10.985.991,42 31.278.563,68 Sales 20.892.756,49 21.091.858,76 41.984.615,25 Total 1 41.185.328,74 32.077.850,19 73.263.178,93 Subscriptions 4.786.152,31 4.077.498,21 8.863.650,52 Redemptions 5.900.585,33 14.088.014,52 19.988.599,85 Total 2 10.686.737,64 18.165.512,73 28.852.250,37 Monthly average of total assets

41.836.481,56 37.880.185,25 39.842.508,22

Turnover rate 72,90 % 36,73 % 111,47 %

1st half of year 2nd half of year YearPurchases 20.292.572,26 10.985.991,42 31.278.563,68 Sales 20.892.756,49 21.091.858,76 41.984.615,25 Total 1 41.185.328,74 32.077.850,19 73.263.178,93 Subscriptions 4.786.152,31 4.077.498,21 8.863.650,52 Redemptions 5.900.585,33 14.088.014,52 19.988.599,85 Total 2 10.686.737,64 18.165.512,73 28.852.250,37 Monthly average of total assets

40.575.521,99 36.117.179,27 38.497.684,26

Corrected turnover rate 75,17 % 38,52 % 115,36 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 92.687,90 92.687,90 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 10.104,17 4.789,02 25.396,19 6.012,95 122.875,12 24.792,50 147.667,62

2011 - 12 8.106,98 4.674,75 19.572,12 5.264,00 111.409,99 24.203,25 135.613,24

2012 - 12 23.147,41 4.252,78 56.605,75 3.057,39 77.951,64 25.398,64 103.350,28

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 3.850.421,88 1.089.300,77 9.482.192,48 1.394.905,06

2011 - 12 3.081.206,76 926.950,15 7.317.461,79 1.197.061,95

2012 - 12 8.014.633,38 885.163,96 19.702.815,54 632.796,61

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 52.773.877,27 382,72 231,82

2011 - 12 38.981.381,69 309,62 185,38

2012 - 12 36.137.904,49 389,23 228,24

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0129009966 EUR 25.02% 1.84% -9.82% 4.20% 31/05/1999 -0.61%

DIV BE0129141348 EUR 24.98% 1.81% -9.84% 4.18% 31/05/1999 -0.63%

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

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 28/03/2013: 3.33 EUR net (4.43 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Distribution: 1.612% Capitalization: 1.578% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 2,683 1,359 50.66%

CSFBSAS 1,088 525 48.23%

DEUTSCHE 6,396 3,161 49.42%

HSBC 177 89 50.00%

NOMURA 411 197 47.90%

SOCGEN 772 376 48.64%

UBSWDR 1,146 565 49.31%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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.

Name Maximum management feeKBC Equity Fund-Belgium 1,50

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 13.697,21 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

BEKAERT EUR 3.920 21,875 85.750,00

Total 85.750,00

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

BUNDESREPUB.DTL. 2011 2.25% 04/09/21 EUR 17.000 EUR 18.730,33

OAT FRANCE 2003 4% 25/04/14 EUR 12.000 EUR 12.956,56

FRANCE 2004 1,60% 25/07/2015 EUR 2.000 EUR 2.570,00

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 53.000 EUR 58.431,02

Total 92.687,91 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund World

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND WORLD

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 5 April 1991 Initial subscription price: 11741 BEF Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in an international basket of shares.

INVESTMENTS PRIMARILY IN ASSETS OTHER THAN SECURITIES OR MONEY MARKET INSTRUMENTS The sub-fund will invest primarily in permitted assets other than securities or money market instruments, including units in other UCIs.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. The debt crisis in Europe continued to rage unabated. Five euro countries have already needed a bailout from the European emergency fund. Greece twice reached an agreement during the year with its private sector creditors on restructuring the bond debt it owes them. Spain found itself in the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. Consolidation of the stock-market rally The initial phase of the economic recovery went hand in hand with a fine stock-market rally, resulting in the S&P 500 being 75% higher at the end of April 2010 than its low point on 9 March 2009. Since then, the equity markets have struggled to find fresh impetus. The euro crisis and fear that the European banking sector would collapse naturally continued to cast a dark cloud over the market. On top of this, the stock markets were affected by vacillating sentiment about the economic situation, and the same is true of 2012. In the first three months the markets were buoyed up by relative economic optimism. After the gains slackened in April and May, a fine rally occurred from early June onwards, thereby negating the gloomier economic signals. The MSCI All Countries (the broadest global index) was up 14.5% in euros on December compared to year-end 2011. Regional performance Of the traditional markets, Western Europe (MSCI Europe return index up +18.4% over this period) managed to claw back some of the underperformance that has built up since the start of the euro crisis in autumn 2009. Nevertheless the problems continued to mount in the EMU: they include the Greek debt restructuring, the threat of an extremist separatist party winning the Greek elections, the undercapitalisation of Spanish banks, the referendum in Ireland, and the financial collapse in Cyprus. Evidently the underperformance of European shares over many years has increased the valuation gap with US shares to such an extent that fresh events in the euro crisis have less impact on the stock markets. Wall Street closed the year substantially higher on balance (S&P500: +13.4%, Dow Jones: +7.3%), while European investors also benefited from a small increase in the value of the dollar (return MSCI USA in euros: +13,9%).

The return on the Japanese stock exchange (+6.1%) was positive but hardly convincing from a global perspective. Over the past years (and indeed decades) the Japanese market has lost much of its attraction. Domestic investors are sceptical about the country’s economic and political stability. Foreign investors, who previously capitalised on growth in Asia via the Tokyo stock exchange, now have better (direct) alternatives. The Asian emerging markets (+20.4%) lagged behind well into 2011, but were able to regain ground as from early 2012. Investors were worried about rising inflation and the tightening of monetary policy. Developments in recent months have proved that to be unjustified. Stock-market valuations remain favourable, especially given the high growth forecasts, sound macroeconomic balance and a banking sector that was barely – if at all – affected by the credit crisis. The Latin American markets (+6.8%) were also hit by the fears of overheating. The link to the commodity markets is always at the fore. Eastern Europe (+16.1%) was a divided region. The Russian stock market excelled until mid-2011, owing to the increase in oil prices. This later changed when oil prices slipped, which had an immediate effect on the valuation of oil companies and an indirect effect by way of a higher premium for the 'Russia' risk because of the resultant fall in government revenue. Sectoral performance There were major differences in the returns for the various sectors. The best performing sectors included Financials, Pharmaceuticals and Consumer Discretionary. The worst performers included Energy, Utilities and Telecommunication Services. The outperformance of the Banks is no doubt associated with the quantitative easing programmes undertaken by the central banks. That entails the Fed’s QE3 and, more especially, the announcement of OMT by the ECB, which eased the pressure of the euro crisis. Pharmaceuticals had been shunned for a long time due to a lack of product innovation, patent expiry and the reforms to healthcare insurance in the US. In recent months investors began to focus on the sector’s response to these challenges: restructuring operations and the sell-off of non-strategic divisions. Media put in a very strong performance. The advertising markets emerged from a deep trough thanks to the Olympic Games and the presidential elections in the US. Other significant trends are the increasing popularity of e-books and the ongoing breakthrough of digital television. The oil companies suffered from the vagaries of the oil market, the political instability in the Middle East and frequent accidents. The consequences of the Fukushima nuclear disaster continued to cast a shadow throughout the world over the future of nuclear power plants. The forecast growth will also necessitate further investments in network capacity and it is not clear whether the budgets allocated by the telecom operators will be sufficient.

2.1.8 FUTURE POLICY The US and European barometers measuring confidence among business leaders peaked in spring 2011 at record levels, but have slipped over the past 18 months. In the US they have ended up in the twilight zone between recession and expansion. In Europe they are below freezing point. We are expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as jobs growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. In Europe the budgetary plans, the banks' tighter lending policy and the high level of uncertainty among consumers and producers will continue to weigh on growth. In first half of the year could therefore see a contraction of European GDP. No recovery is therefore anticipated until the second half.

Today’s world is one of two-speed economies. The mature industrialised economies (US, Europe, Japan) still find themselves in a low-growth environment, with no underlying inflationary pressure, persistently low interest rates and runaway public finances. The picture in the 'new world' is altogether different. The strong economic growth has sometimes already created inflationary pressure in Asia. As a result, monetary policy in the region will need to be more cautious, or even restrictive (as in 2011) rather than accommodating (as at present). Monetary policy in China and elsewhere in Asia is therefore primed for adjustment and geared to preventing asset-price inflation. This implies not only adjusting interest rates but also active intervention on the credit and foreign exchange markets. This cautious policy is beginning to bear fruit. In China, the rate of increase in the money supply has already slowed considerably, to match the rate of nominal GDP growth. Inflation fell from 6.5% in September 2011 to 2.1% in November 2012. The risk of overheating therefore appears under control. During a period in which a new leadership of the Chinese Communist Party will be installed, little will be left to chance and economic growth will be barely lower than in previous years. One of the major challenges for this decade will be the further development of consumption in China and the rest of Asia. That could help bring about a more balanced economic world order: it will not only reduce the region’s dependence on exports but, at least as importantly, will have an effect on international capital flows. More consumption in China means lower savings and more imports, which will help the West to ‘grow out’ of its debt problems. Thanks to the continued strong growth in the emerging markets, the global economy could post growth of 2–2.5% in 2012 and 2.5–3% in 2013. This is one of the reasons why corporate earnings could continue to grow in the coming quarters at a rate of 5–10%. It seems paradoxical that companies have emerged as the winners from the 2008/09 crisis. They are now reaping the benefits of the considerable restructuring measures pushed through during the recession. Cost controls go beyond (one-off and in some cases spectacular) restructuring measures and have now become an integral part of business culture. The recession of 2008/09 caused companies to be even more aware of risks (i.e. money, and hence costs). Investment projects are subject to a more thorough profitability study. A combination of debt reduction and low interest rates has resulted in a steep drop in financial charges. Globalisation (pressure of relocation) and ongoing high unemployment have made employees powerless to demand high pay increases. Maintaining purchasing power is now about all that is on offer. There is no question of real wage rises. In brief, every cent increase in revenue goes (almost) entirely to the capital factor.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 83.354.531,98 87.989.070,17

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 989.390,80 2.177.108,00 C. Shares and similar instruments a) Shares 1.039.147,10 1.207.704,01 b) Closed-end undertakings for collective

investment 105.218,40

E. Open-end undertakings for collective investment 81.037.838,80 83.757.654,41 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -13.142,32 m) Financial indices Futures and forward contracts (+/-) 5.125,60 26.716,16

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 9.528,79 4.083,70 b) Tax assets 5.514,87 c) Collateral 100.643,00 148.565,37 B. Payables a) Accounts payable (-) -96.972,70 -159.261,36

V. Deposits and cash at bank and in hand A. Demand balances at banks 349.216,49 782.078,84

VI. Accruals and deferrals A. Expense to be carried forward 1.625,41 B. Accrued income 5.097,95 3.580,20 C. Accrued expense (-) -71.341,53 -71.517,84

TOTAL SHAREHOLDERS' EQUITY 83.354.531,98 87.989.070,17

A. Capital 63.334.176,64 79.522.014,55

B. Income equalization -15.277,40 40.038,96

C. Profit(Loss) carried forward 8.442.358,17 10.805.986,55

D. Result for the period 11.593.274,57 -2.378.969,89

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.B Cash at bank and in hand/deposits 100.643,00 148.565,37

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 2.566.623,15 2.225.647,15

III.B Written futures and forward contracts -265.473,30

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -197.024,70 6.031,10 C. Shares and similar instruments a) Shares 53.513,85 1.686.411,03 b) Closed-end undertakings for collective

investment 2.254,68 9.770,28

D. Other securities 24,73 E. Open-end undertakings for collective investment 11.896.800,80 -3.745.467,37 F. Derivative financial instruments l) Financial indices Futures and forward contracts 259.845,01 141.871,60 m) Derivative financial instruments Swap contracts (+/-) 82.421,04 G. Receivables, deposits, cash at bank and in hand

and payables 0,01

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -13.142,32 b) Other foreign exchange positions and

transactions -396.127,39 -57.347,41

II. Investment income and expenses A. Dividends 32.916,88 132.684,79 B. Interests a) Securities and money market instruments 267.863,10 43.382,93 b) Cash at bank and in hand and deposits 1.880,25 11.684,64 c) Collateral (+/-) 0,65 C. Interest on borrowings (-) -1.692,61 -4.894,41

III. Other income B. Other 4.042,60

IV. Operating expenses A. Investment transaction and delivery costs (-) -141.792,48 -68.383,64 B. Financial expenses (-) -1.504,35 -3.905,69 C. Custodian's fee (-) -4.334,73 -31.334,78 D. Manager's fee (-) a) Financial management -37.538,66 -121.625,74 b) Administration and accounting management -88.500,62 -105.113,08 E. Administrative expenses (-) -93,82 F. Formation and organisation expenses (-) -12.100,21 -271.838,57 G. Remuneration, social security charges and

pension -7,35 -18,86

H. Services and sundry goods (-) -15.777,15 -64.949,85 J. Taxes -4.385,86 -8.772,63 K. Other expenses (-) -7.777,75 -13.643,26

Income and expenditure for the period Subtotal II + III + IV -12.845,36 -502.684,90

V. Profit (loss) on ordinary activities before tax 11.593.274,57 -2.378.969,89

VII. Result for the period 11.593.274,57 -2.378.969,89

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 20.020.355,34 8.467.055,62 Profit (loss) brought forward from the previous

financial year 8.442.358,17 10.805.986,55

Profit for the period available for appropriation 11.593.274,57 -2.378.969,89 Income on the creation of shares (income on the

cancellation of shares) -15.277,40 40.038,96

II. (Appropriations to) Deductions from capital -20.013.246,57

III. Profit (loss) to be carried forward 8.442.358,17

IV. (Dividends to be paid out) -7.108,77 -24.697,45

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND WORLD

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Closed-end funds

Listed closed-end investment funds

Belgium

KBC ECO FUND WATER IS B KAP 1.142,00 EUR 731,250 835.087,50 0,51 1,01 1,00

KBC EQUITY FUND AMERICA IS B KAP 7.102,00 USD 1.525,100 8.215.458,28 2,67 9,89 9,86

KBC EQUITY FUND BUYBACK AMERICA IS B KAP 1.557,00 USD 1.025,240 1.210.784,80 0,70 1,46 1,45 KBC EQUITY FUND COMMODITIES & MATERIALS IS B KAP

3.862,00 EUR 473,090 1.827.073,58 1,85 2,20 2,19

KBC EQUITY FUND CONSUMER DURABLES IS B KAP 1.650,00 EUR 347,130 572.764,50 1,63 0,69 0,69

KBC EQUITY FUND EUROZONE IS B KAP 36.783,00 EUR 348,010 12.800.851,83 2,56 15,43 15,36

KBC EQUITY FUND FINANCE IS B KAP 17.663,00 EUR 380,660 6.723.597,58 2,14 8,10 8,07 KBC EQUITY FUND FOOD & PERSONAL PRODUCTS IS B KAP

2.683,00 EUR 1.067,240 2.863.404,92 1,96 3,45 3,44

KBC EQUITY FUND GROWTH BY INNOVATION IS B KAP 8.527,00 EUR 159,680 1.361.591,36 2,10 1,64 1,63

KBC EQUITY FUND HIGH DIVIDEND IS B KAP 2.692,00 EUR 850,160 2.288.630,72 0,69 2,76 2,75 KBC EQUITY FUND HIGH DIVIDEND NEW MARKETS IS B KAP

9.277,00 EUR 462,540 4.290.983,58 2,01 5,17 5,15

KBC EQUITY FUND HIGH DIVIDEND NORTH AMERICA IS B KAP 9.264,00 USD 590,700 4.150.671,12 2,23 5,00 4,98

KBC EQUITY FUND INDUSTRIALS & INFRASTRUCTUR IS B KAP

7.283,00 EUR 205,300 1.495.199,90 2,16 1,80 1,79

KBC EQUITY FUND MILLENNIUM IS B KAP 22.297,00 EUR 93,210 2.078.303,37 2,03 2,50 2,49

KBC EQUITY FUND NEW ASIA IS B KAP 3.512,00 EUR 555,200 1.949.862,40 0,83 2,35 2,34

KBC EQUITY FUND OIL IS B KAP 1.775,00 EUR 628,370 1.115.356,75 1,23 1,34 1,34

KBC EQUITY FUND PACIFIC IS B KAP 5.150,00 EUR 359,300 1.850.395,00 2,18 2,23 2,22

KBC EQUITY FUND PHARMA IS B KAP 4.953,00 EUR 740,170 3.666.062,01 1,70 4,41 4,40

KBC EQUITY FUND QUANT EMU IS B KAP 21.016,00 EUR 513,140 10.784.150,24 2,70 12,98 12,94

KBC EQUITY FUND QUANT EUROPE IS B KAP 3.407,00 EUR 350,080 1.192.722,56 2,50 1,44 1,43

KBC EQUITY FUND SATELLITES IS B KAP 915,00 EUR 918,240 840.189,60 1,67 1,01 1,01

KBC EQUITY FUND TECHNOLOGY IS B KAP 43.074,00 USD 146,410 4.783.422,59 1,41 5,76 5,74

KBC EQUITY FUND TELECOM IS B KAP 5.575,00 EUR 274,650 1.531.173,75 1,97 1,84 1,84

Open-end funds

UCITS registered with the FSMA

Belgium

KBC EQUITY FUND EUROPE KAP 1.490,00 EUR 1.175,800 1.751.942,00 1,81 2,11 2,10

UCI registered with FSMA

Belgium

KBC MULTI TRACK GERMANY KAP 4.082,00 EUR 210,230 858.158,86 0,78 1,03 1,03

Total investment funds 81.037.838,80 97,57 97,22

Bonds

Corporate bonds

Ireland

ARCADE FINANCE PLC R17 SUB 14/05/13 545.000,00 EUR 59,880 326.346,00 0,39 0,39

D-STAR FINANCE PLC SUB 14/05/13 1.111.000,00 EUR 59,680 663.044,80 0,80 0,80

Total bonds 989.390,80 1,19 1,19

Shares

Exchange-listed shares

France

GDF SUEZ STRIP VVPR 62,00 EUR 0,001 0,06

U.S.A.

ISHARES TRUST CDN S&P/TSX 60 76.121,00 CAD 17,920 1.039.147,04 1,25 1,25

Total shares 1.039.147,10 1,25 1,25

Options and futures

Exchange-listed futures

Belgium

EURO - STOXX 50 MAR 13 31,00 EUR 2.615,000 810.650,00 0,98 0,97

U.S.A.

STAND & POORS MAR 13 3,00 USD 1.420,100 807.854,22 0,97 0,97

Suspense accounts (futures)

Belgium

EURO - STOXX 50 MAR 13 -811.270,00 EUR 1,000 -811.270,00 -0,98 -0,97

U.S.A.

STAND & POORS MAR 13 -1.057.500,00 USD 1,000 -802.108,62 -0,97 -0,96

Total options and futures 5.125,60 0,01 0,01

Forward contracts EUR -13.142,32 -0,02

TOTAL SECURITIES PORTFOLIO 83.058.359,98 100,00 99,65

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 616,14 AUD 1,000 485,19 0,00

KBC GROUP CAD 624,82 CAD 1,000 475,98 0,00

KBC GROUP CHF 881,01 CHF 1,000 730,04 0,00

KBC GROUP CZK 37,50 CZK 1,000 1,49

KBC GROUP DKK 941,22 DKK 1,000 126,15

KBC GROUP EURO 263.747,02 EUR 1,000 263.747,02 0,32

KBC GROUP GBP 2.869,19 GBP 1,000 3.537,41 0,00

KBC GROUP HKD 298,11 HKD 1,000 29,17

KBC GROUP HUF 36.338,62 HUF 1,000 124,78

KBC GROUP JPY 64.084,00 JPY 1,000 562,14 0,00

KBC GROUP NOK 2.834,69 NOK 1,000 386,34

KBC GROUP PLN 570,69 PLN 1,000 139,86

KBC GROUP SEK 750,86 SEK 1,000 87,55

KBC GROUP SGD 510,99 SGD 1,000 317,29

KBC GROUP TRY 3.353,73 TRY 1,000 1.425,30 0,00

KBC GROUP USD 793,82 USD 1,000 602,11 0,00

KBC GROUP ZAR 935,28 ZAR 1,000 83,61

Total demand accounts 272.861,43 0,33

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 27.997,78 EUR 1,000 27.997,78 0,03

KBC GROUP USD FUT REK 63.754,24 USD 1,000 48.357,28 0,06

Total managed futures accounts 76.355,06 0,09

TOTAL CASH AT BANK AND IN HAND 349.216,49 0,42

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 9.528,79 EUR 1,000 9.528,79 0,01

Netherlands

KBC CLEARING NV DEKKING EUR 60.822,00 EUR 1,000 60.822,00 0,07

KBC CLEARING NV DEKKING USD 52.500,00 USD 1,000 39.821,00 0,05

Total receivables 110.171,79 0,13

Payables

Belgium

KBC GROUP EUR PAYABLE -96.972,70 EUR 1,000 -96.972,70 -0,12

Payables -96.972,70 -0,12

TOTAL RECEIVABLES AND PAYABLES 13.199,09 0,02

OTHER

Interest receivable EUR 4.933,92 0,01

Accrued interest EUR 164,03

Expenses payable EUR -71.341,53 -0,08

TOTAL OTHER -66.243,58 -0,08

TOTAL NET ASSETS 83.354.531,98 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Argentinia 0,01 0,00 0,01 0,00 Australia 2,88 1,54 0,90 1,38 Austria 0,17 0,25 0,27 0,28 Belgium 0,95 2,47 3,50 4,71 Bermuda 0,50 0,36 0,36 0,28 Brazil 2,33 1,32 1,05 1,05 Canada 1,65 1,77 1,31 1,68 Switzerland 3,09 2,45 1,98 1,98 Chile 0,09 0,08 0,15 0,17 China 1,91 1,81 1,84 1,92 Colombia 0,04 0,23 0,17 0,15 Czech Republic 0,18 0,16 0,07 0,06 Cayman Islands 0,23 0,18 0,32 0,28 Cyprus 0,04 0,01 0,02 0,00 Germany 5,33 8,64 12,69 10,88 Denmark 0,82 0,42 0,51 0,60 Egypt 0,00 0,01 0,00 0,00 Spain 1,14 3,19 3,53 3,33 Finland 0,64 0,83 0,44 0,61 France 3,98 8,73 10,87 9,63 U.K. 10,20 7,24 6,02 5,36 Greece 0,17 0,08 0,06 0,07 Hong Kong 1,66 1,39 1,37 1,23 Hungary 0,09 0,03 0,01 0,01 India 1,12 0,78 0,80 0,64 Indonesia 0,32 0,34 0,47 0,31 Ireland 0,58 3,30 1,80 1,57 Israel 0,10 0,06 0,04 0,02 Italy 1,40 2,21 3,09 2,28 Jersey/The Channel Islands 0,12 0,21 0,15 0,20 Japan 5,80 3,74 3,11 3,98 South Korea 2,26 2,26 2,32 2,05 Luxembourg 0,20 0,49 0,43 0,37 Mexico 0,82 0,42 0,44 0,46 Malaysia 0,60 0,58 0,62 0,42 Netherlands 1,77 3,50 3,62 3,28 Norway 0,54 0,45 0,45 0,43 New Zealand 0,02 0,02 0,01 0,03 Peru 0,04 0,11 0,09 0,10 Philippines 0,08 0,14 0,20 0,16 Poland 0,30 0,23 0,12 0,14 Portugal 0,12 0,27 0,09 0,09 Romania 0,01 0,01 0,00 0,00 Russia 1,66 1,42 0,50 0,50 Singapore 0,58 0,33 0,25 0,28 Slovenia 0,00 0,01 0,00 0,00 Sweden 1,39 0,87 0,80 1,14 Thailand 0,20 0,23 0,38 0,35 Turkey 0,42 0,24 0,33 0,28 Taiwan 1,75 1,88 1,88 1,60 U.S.A. 38,86 32,03 29,88 33,00 Guernsey The Channel Islands 0,01 0,00 0,00 0,00

South Africa 0,81 0,66 0,65 0,66 Zaire 0,02 0,02 0,03 0,00 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 30,16 25,73 25,07 23,34 Consum(cycl) 10,15 10,14 12,09 10,28 Cons.goods 9,69 11,91 12,63 11,49 Pharma 8,42 8,80 8,77 9,35 Financials 20,03 21,43 20,56 24,56 Technology 11,44 10,83 11,86 12,42 Telecomm. 5,66 6,46 4,18 4,21 Utilities 2,81 3,48 3,61 3,02 Real est. 1,56 1,17 1,13 1,31 Governm. 0,04 0,01 0,01 0,00 Unit trusts 0,01 0,01 0,02 0,00 Various 0,03 0,03 0,07 0,02 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 2,87 1,56 0,90 1,37 BRL 2,23 1,27 1,04 1,02 CAD 2,62 3,15 2,51 2,85 CHF 3,09 2,48 1,74 2,03 CNY 0,19 0,18 0,03 0,04 COP 0,04 0,04 0,02 0,00 CZK 0,20 0,17 0,07 0,06 DKK 0,82 0,42 0,51 0,60 EUR 16,75 34,52 41,06 35,02 GBP 9,61 6,80 5,15 5,34 HKD 3,51 3,07 3,48 3,36 HUF 0,09 0,03 0,01 0,01 IDR 0,42 0,43 0,50 0,31 ILS 0,00 0,00 0,01 0,01 INR 0,94 0,62 0,71 0,59 JPY 5,77 3,66 3,14 3,97 KRW 2,24 2,24 2,31 2,03 MXN 0,56 0,31 0,42 0,40 MYR 0,60 0,58 0,60 0,41 NOK 0,58 0,45 0,44 0,45 NZD 0,02 0,03 0,01 0,03 PEN 0,01 0,00 0,00 0,00 PHP 0,08 0,14 0,20 0,16 PLN 0,31 0,23 0,12 0,14 RON 0,01 0,01 0,00 0,00 SEK 1,37 0,88 0,79 1,10 SGD 0,54 0,30 0,25 0,28 THB 0,21 0,26 0,38 0,35 TRY 0,42 0,24 0,33 0,28 TWD 1,83 1,82 1,88 1,53 USD 41,23 33,43 30,71 35,59 ZAR 0,84 0,68 0,68 0,67 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND WORLD (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 28.410.682,60 17.026.051,72 45.436.734,32 Sales 31.620.882,65 29.808.487,96 61.429.370,61 Total 1 60.031.565,25 46.834.539,68 106.866.104,93 Subscriptions 4.288.490,82 681.660,10 4.970.150,92 Redemptions 7.527.732,96 13.619.084,84 21.146.817,80 Total 2 11.816.223,78 14.300.744,94 26.116.968,72 Monthly average of total assets

92.098.780,85 89.100.666,95 90.599.723,90

Turnover rate 52,35 % 36,51 % 89,13 %

1st half of year 2nd half of year YearPurchases 28.410.682,60 17.026.051,72 45.436.734,32 Sales 31.620.882,65 29.808.487,96 61.429.370,61 Total 1 60.031.565,25 46.834.539,68 106.866.104,93 Subscriptions 4.288.490,82 681.660,10 4.970.150,92 Redemptions 7.527.732,96 13.619.084,84 21.146.817,80 Total 2 11.816.223,78 14.300.744,94 26.116.968,72 Monthly average of total assets

91.396.560,40 88.647.942,05 90.175.144,00

Corrected turnover rate 52,75 % 36,70 % 89,55 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBCCLEAR DEKKING EUR EUR 60.822,00 60.822,00 N/A 31.12.2012

KBCCLEAR DEKKING USD USD 52.500,00 39.821,00 N/A 31.12.2012

EUROSTOX 13/03/2013 EUR 810.650,00 810.650,00 10,00 17.12.2012

STPOORS 13/03/2013 USD 1.065.075,00 807.854,22 250,00 17.12.2012

KBC AK-VK USD-EUR 130111-121130 1.293584

USD 1.250.000,00 948.118,93 N/A 30.11.2012

KBC VK-AK USD-EUR 130111-121212 1.293571

USD -350.000,00 -265.473,30 N/A 12.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 102.263,46 8.222,00 56.897,06 4.185,00 98.984,31 7.106,00 106.090,31

2011 - 12 7.871.631,90 273.655,42 7.634.553,10 254.764,09 336.063,11 25.997,32 362.060,44

2012 - 12 18.260,13 319,85 75.426,20 3.251,73 278.897,05 23.065,44 301.962,49

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 1.505.933,71 462.591,75 3.495.362,40 253.069,56

2011 - 12 2.655.285,39 244.939,19 2.261.199.685,42 83.800.126,44

2012 - 12 4.888.188,70 70.064,13 20.433.819,28 728.478,29

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 27.817.063,66 265,11 221,64

2011 - 12 87.989.070,17 245,92 205,64

2012 - 12 83.354.531,98 279,62 232,82

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6213775529 EUR 13.29% 7.89% -2.50% 1.96% 05/04/1991 2.97%

DIV BE6213776535 EUR 13.29% 7.90% -2.50% 1.96% 05/04/1991 2.51%

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

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 28/03/2013: 0.23 EUR net (0.31 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Distribution: 0.29% Capitalization: 1.531% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CSFBSAS 276 147 53.33%

JP MORGAN 28 16 55.54%

MORGAN STANLEY 8 4 50.02%

UBSWDR 8 4 55.57%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The Euro Stoxx 50 is a weighted equity index computed by Stoxx Ltd. The dividend is not reinvested. The main purpose of this index is to provide a continuous indication of market trends on the European stock markets. The base value of the index is 1000, calculated on the basis of the underlying prices recorded on 31 December 1991. The Euro Stoxx 50 consists solely of shares from countries participating in the Economic and Monetary Union, with the exception of Luxembourg. On 10 April 1998, the following stock exchanges were included in the index: Austria (Vienna), Belgium (Brussels), Finland (Helsinki), France (Paris), Germany (Frankfurt), Italy (Milan), Ireland (Dublin), the Netherlands (Amsterdam), Portugal (Lisbon) and Spain (Madrid). The index consists of the 50 largest European shares in terms of shares that are freely negotiable, and the shares are accordingly weighted on the basis of this criterion. The Euro Stoxx 50 is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Stoxx Limited has all proprietary rights with repect to the index. In no way Stoxx Limited endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Stoxx Limited disclaims any liability for the issue and offering of the shares of this undertaking for collective investment.

The S&P 500 is an equity index computed by Standard & Poor’s that is made up of 500 shares. The dividend is not reinvested. The S&P 500 serves primarily as a continuous indicator of market trends on the US stock markets. The value of the S&P 500 index is calculated on the basis of the market value of the shares of 500 companies at a given point in time, compared to the market value of the shares of 500 similar companies during the reference period from 1941 to 1943. The index is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Standard & Poor’s has all proprietary rights with repect to the index. In no way Standard & Poor’s endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Standard & Poor’s disclaims any liability for the issue and offering of the shares of this undertaking for collective investment The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service.

Name Maximum management feeKBC Eco Fund-Water-Institutional B Shares 1,50 KBC Equity Fund-America-Institutional B Shares 1,50 KBC Equity Fund-Buyback America-Institutional B Shares 1,50 KBC Equity Fund-Commodities & Materials-Institutional B Shares 1,50 KBC Equity Fund-Consumer Durables-Institutional B Shares 1,50 KBC Equity Fund-Eurozone-Institutional B Shares 1,50 KBC Equity Fund-Finance-Institutional B Shares 1,50 KBC Equity Fund-Food & Personal Products-Institutional B Shares 1,50 KBC Equity Fund-Growth by Innovation-Institutional B Shares 1,50 KBC Equity Fund-High Dividend-Institutional B Shares 1,50 KBC Equity Fund-High Dividend New Markets-Institutional B Shares 1,50 KBC Equity Fund-High Dividend North America-Institutional B Shares 1,50 KBC Equity Fund-Industrials & Infrastructure-Institutional B Shares 1,50 KBC Equity Fund-Millennium-Institutional B Shares 1,50 KBC Equity Fund-New Asia-Institutional B Shares 1,60 KBC Equity Fund-Oil-Institutional B Shares 1,50 KBC Equity Fund-Pacific-Institutional B Shares 1,50 KBC Equity Fund-Pharma-Institutional B Shares 1,50 KBC Equity Fund-Quant EMU-Institutional B Shares 1,50 KBC Equity Fund-Quant Europe-Institutional B Shares 1,50 KBC Equity Fund-Satellites-Institutional B Shares 1,50 KBC Equity Fund-Technology-Institutional B Shares 1,50 KBC Equity Fund-Telecom-Institutional B Shares 1,50 KBC Equity Fund-Europe 1,50 KBC Multi Track-Germany 0,70 KBC Equity Fund-World 1,50

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to –568,84 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Latin America

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND LATIN AMERICA

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 28 January 1994 Initial subscription price: 20000 BEF Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies in Latin American countries where conditions are such as to ensure accelerated economic growth in the short or medium term. This may involve the use of Depository Receipts, including ADRs and GDRs. Investors should note that the sub-fund may invest up to 100% of its assets in Depository Receipts.

RISK CONCENTRATION Latin American shares.

INDEX-TRACKING: The object of the sub-fund is to track the composition of an index within the meaning and limits of Article 37 of the Royal Decree of 4 March 2005. Index/indices in question: MSCI Latin America. Index tracking method: Optimised Sampling: the index is tracked using a selection of shares in the index in order to best replicate the index. In addition, an optimisation algorithm is used that balances the risk and the return of each of the portfolio positions, so optimising the selection.

If the composition of the index is no longer sufficiently diversified or if the index is no longer sufficiently representative of the market it relates to or if the value and composition of the index is no longer published in a suitable manner, the management company will inform the Board of Directors without delay. The Board of Directors will consider what action to take in the interest of investors and may convene a general meeting of shareholders in order to amend the investment policy.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR The KBC Equity Fund Latin America invests directly in local Latin American markets as well as ADRs and GDRs where necessary. The fund invests in the following markets with approximately the accompanying proportions: Brazil (59%), Mexico (23%), Chile (9%), Colombia (5%), Peru (3%) and Argentina (1%). The largest holdings are Petrobras, Vale and America Movil. The fund’s NAV rose from 1344.71 to 1393.41 in 2012. Latin American equities had a positive returns in 2012 but failed to outperform global equity markets in the euro terms. A large discrepancy in the returns is evident. Colombia and Mexico were top performers with very strong, double-digit returns. Brazilian stock market was a clear laggard and had negative returns. On a sector basis, Industrials and Consumer Staples were top performers while Energy stocks lagged behind.

Over the first half of the 2012, the changing situation in Europe was the primary concern for investors who were in a risk-on/risk-off mode depending primarily on the Eurozone developments. Throughout the first quarter, the situation in Europe continued to improve and markets performed strongly. Investors accepted the Greek sovereign debt swap offer and the European Central Bank agreed to provide direct support to troubled European banks. Economists were of opinion that China, the most important trading partner for Brazil and receiver of its commodities-based exports, will experience a slowdown in growth but not an outright recession. The global situation worsened in the second quarter of the year. In France, anti-austerity measures of a newly elected president were in opposition to the so-far dominating view advocated by German Chancellor Angela Merkel and resulted in a widening of an already existing rift in European policy. Investors were concerned that Greece, following local parliamentary elections, may leave the Eurozone and return to its old currency, the drachma and cause an uncontrolled breakup of the European Monetary Union. Contagion fears spread to another weak link in a European chain – Spain. Its macroeconomic numbers continued to disappoint and Madrid was forced to ask for an assistance as costs of financing in capital markets were too high. Political issues were not the only force behind declines in equities. First half of the year saw a substantial deterioration in macro data globally – not only in Europe that remained in the spotlight, but also in the US and China. As a consequence, markets were very weak and in a risk-off mode, with most risk assets reversing the gains achieved in first months of the year. At the start of the second half of the year, markets moved considerably upwards although the first days of the third quarter brought even more disappointing macroeconomic news. The US growth forecast was downgraded and problems in the Eurozone continued. The equity rally gained momentum towards the end of the summer on anticipation that central banks worldwide, and the American monetary authority in particular, will start a new round of monetary easing. The expectations proved to be true when the US Fed announced QE3 in September, along with the aim of keeping interest rates low until at least the middle of 2015. In the final quarter of the year, markets gained some positive momentum in its final months on the expectation that a political resolution of ‘fiscal cliff’ issue in the United States would be found and cuts in government spending and increases in taxes, which would likely prompt the US economy into recession, would be avoided. Other main news over the period were successful leadership transition in China and elections in Japan. In Brazil, economic activity disappointed in 2012. At the start of the year, market watchers were quite upbeat about prospects for Latin America’s largest economy and expected GDP growth to come in at 3.4% for the full year. However, economic data continued to come in below expectations, the awaited economic recovery failed to materialise and GDP forecasts had to be revised down accordingly. The most recent forecast for 2012 GDP growth is a lacklustre 1%. For Brazilian investors, who became used to an annual GDP growth above 4% over last 10 years, this negative review caused quite some concerns. On a monetary policy front, the benchmark interest rate, the Selic, finished year at 7.25%, an all-time historic low, down from 11% at the start of the year. The slowdown in economic activity was recognised early by the Brazilian Central Bank which proved to be very proactive in their monetary response and the interest rate has been decreased by a total of 500 basis points since the summer of 2011. However, interest rate cuts and substantial counter-cyclical fiscal policy promoted by the Brazilian government failed to have a substantial and lasting impact on the Brazilian economy, reinforcing the opinion that recent deterioration in economic activity is not short-term, cyclical and driven by global macroeconomic factors and but rather of more structural, domestic and long-term nature. Especially given the fact, that Brazil’s economic activity remained somewhat at odds with its Latin American peers, particularly Mexico, which is expected to record a healthy growth rate of 3.8% in 2012. Although the headline economic data is disappointing, there are some signs that the economy is turning the corner as industrial business confidence improved in a final quarter of 2012. Household spending, one of the pillars of economic growth in 2012, is expected to remain strong as consumer confidence rose to a level close to its historical peak. Labour market conditions tightened even more and continue to defy Brazil’s disappointing economic reality. The unemployment is 4.9% at the end of the year, the second lowest in the series. Together with a 9% increase in the minimum wage, it is expected to provide an additional boost to a household consumption that is already growing at a healthy rate. However, the growth in labour’s productivity remains disappointing and heated labour market conditions may translate into inflationary pressures in 2013. For now though, inflation remains within a target range set by the Brazilian Central Bank, although closer to its upper limit. Inflation is always a topic that should be looked at in Brazil, given the history of price instability. However for now, market participants expect it will not be an issue for the central bank and that the benchmark interest rate will remain unchanged in 2013. Moreover, they anticipate an uptick in the economic activity in 2013 with market consensus for economic growth of 3.5% for the full year.

Over the last decade, dubbed as ‘a decade of emerging markets’, Mexico’s growth was quite disappointing and in line with the US growth rather than similar to its emerging markets peers. In 2012, however, Mexican equities substantially outperformed other Latin American and emerging market equities on a premise that after presidential elections ambitious structural reforms will be implemented. Market watchers believe that probability is quite high that aggressive reforms agenda will be advanced and local equities and a currency trade at a premium to other Latin American markets as they already started to price in the positive impact that reforms will have on boosting Mexico’s competitiveness and long-term growth prospects.

2.1.8 FUTURE POLICY Overall, equity markets were quite volatile during the first months of 2012 and while some concerns eased in the second half of the year, the volatility is likely to continue going forward. Although, the political situation, especially in Europe, improved somewhat recently, assets prices are still driven mainly by political news and changes in market sentiment. Investors are likely to continue switching between risk-on and risk-off modes depending on developments in political and macroeconomic situation. Historically, emerging markets equities are more volatile than their counterparts in developed markets as their prices are more sensitive to changes in global macroeconomic data and investors’ sentiment towards risk assets. This is likely to continue to prove true for equities in Latin America and particularly in Brazil, which is more intertwined in the global economy than its smaller local peers. Brazil’s largest companies are reliant on the global macroeconomic situation as their fortunes tend to be more dependent on commodity-oriented exports. We do continue to believe, however, that the global economic picture is getting stronger. Moreover, a substantial part of the slowdown in the Brazilian economy appears to be priced in at current valuations. In the mid to long term, we believe that Latin America will be one of the major beneficiaries of global economic recovery, partly as the region was exposed to very few structural imbalances that came to light during the financial crisis of 2008 and partly as demographic dynamics and credit penetration have room to evolve further. On a final note, investors should be aware of the high risk and volatility associated with investing in emerging markets such as Latin America.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 42.118.031,75 43.853.809,22

II. Securities, money market instruments, UCIs and derivatives

C. Shares and similar instruments a) Shares 41.897.515,81 43.585.981,21 D. Other securities 1.043,45 1,85

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 146.366,06 1.850,93 B. Payables a) Accounts payable (-) -78.767,50 -27.948,68 c) Borrowings (-) -75.801,02

V. Deposits and cash at bank and in hand A. Demand balances at banks 60.840,29 117.436,07

VI. Accruals and deferrals A. Expense to be carried forward 3.317,98 B. Accrued income 203.591,82 224.421,26 C. Accrued expense (-) -36.757,16 -51.251,40

TOTAL SHAREHOLDERS' EQUITY 42.118.031,75 43.853.809,22

A. Capital 12.662.557,99 15.879.770,65

B. Income equalization -40.941,23 -293.389,88

C. Profit(Loss) carried forward 27.918.245,72 45.690.806,52

D. Result for the period 1.578.169,27 -17.423.378,07

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 3.889.854,88 -13.310.084,21 D. Other securities 1.092,67 -6.071,31 G. Receivables, deposits, cash at bank and in hand

and payables -0,29 -0,01

H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -2.862.754,00 -5.006.777,62

II. Investment income and expenses A. Dividends 1.328.921,06 2.163.797,31 B. Interests a) Securities and money market instruments 31,01 8.555,33 b) Cash at bank and in hand and deposits 353,16 1.946,29 C. Interest on borrowings (-) -1.186,94 -2.881,50

III. Other income B. Other 5.230,04

IV. Operating expenses A. Investment transaction and delivery costs (-) -46.303,28 -88.349,53 B. Financial expenses (-) -686,58 -2.246,13 C. Custodian's fee (-) -38.657,41 -66.894,80 D. Manager's fee (-) a) Financial management -638.253,35 -975.454,78 b) Administration and accounting management -43.521,51 -67.115,72 E. Administrative expenses (-) -237,68 -109,64 F. Formation and organisation expenses (-) -4.954,93 -7.210,98 G. Remuneration, social security charges and

pension -3,38 -14,46

H. Services and sundry goods (-) -8.712,65 -14.765,33 J. Taxes 11.925,74 -36.347,51 K. Other expenses (-) -8.737,25 -18.583,51

Income and expenditure for the period Subtotal II + III + IV 549.976,01 899.555,08

V. Profit (loss) on ordinary activities before tax 1.578.169,27 -17.423.378,07

VII. Result for the period 1.578.169,27 -17.423.378,07

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 29.455.473,76 27.974.038,57 Profit (loss) brought forward from the previous

financial year 27.918.245,72 45.690.806,52

Profit for the period available for appropriation 1.578.169,27 -17.423.378,07 Income on the creation of shares (income on the

cancellation of shares) -40.941,23 -293.389,88

II. (Appropriations to) Deductions from capital -29.416.539,19

III. Profit (loss) to be carried forward 27.918.245,72

IV. (Dividends to be paid out) -38.934,57 -55.792,85

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND LATIN AMERICA

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Argentinia

BBVA BANCO FRANCES SA ADR 111,00 USD 5,030 423,49 0,00 0,00

CRESUD S.A.C.I.F.Y.A. - 5,00 ARS 5,540 4,27

CRESUD S.A.C.I.F.Y.A. -ADR- 50,00 USD 8,320 315,53 0,00 0,00

ENDESA COSTANERA SA 'B' 10.000,00 ARS 1,530 2.360,64 0,01 0,01

IRSA 'B' 9,00 ARS 4,800 6,67

IRSA GDR 74,00 USD 6,970 391,22 0,00 0,00

MOLINOS RIO DE LE PLATA S.A. - 9,00 ARS 26,000 36,10

MOLINOS RIO DE LE PLATA S.A. 'B' 38.980,00 ARS 25,900 155.768,44 0,37 0,37

PETROBAS ENERGIA PARTICIPACIO ADR 8.284,00 USD 4,750 29.846,03 0,07 0,07

PETROBRAS ARGENTINA "B" 4,00 ARS 3,380 2,09

SOLVAY INDUPA S.A.I.C. - 56.694,00 ARS 1,250 10.934,15 0,03 0,03

TRANSPORTADORA DE GAS DEL SUR S.A. -ADR- 73,00 USD 1,760 97,45

TRANSPORTADORA DE GAS DEL SUR S.A. 'B' 1,00 ARS 2,220 0,34

Brazil

AES TIETE SA - 7.000,00 BRL 23,590 61.170,59 0,15 0,15

ALL AMERICA LATINA LOGISTICA - 28.300,00 BRL 8,310 87.117,24 0,21 0,21

AMBEV-CIA DE BEBIDAS DAS AMERICAS - 9.000,00 BRL 83,700 279.051,68 0,67 0,66

AMBEV-CIA DE BEBIDAS DAS AMERICAS PREF 47.800,00 BRL 85,580 1.515.363,59 3,62 3,60

AMIL PARTICIPACOES SA - 8.000,00 BRL 30,850 91.424,34 0,22 0,22

ANHANGUERA EDUCACIONAL PARTICIPACOES - 7.800,00 BRL 34,570 99.887,39 0,24 0,24

ARTERIS SA - 8.000,00 BRL 18,950 56.158,55 0,13 0,13

BANCO BRADESCO S.A. - 36.300,00 BRL 33,940 456.388,96 1,09 1,08

BANCO BRADESCO S.A. PREF 121.133,00 BRL 35,170 1.578.161,74 3,77 3,75

BANCO DO BRASIL SA - 36.300,00 BRL 25,600 344.241,53 0,82 0,82

BANCO SANTANDER BRASIL SA - 48.100,00 BRL 14,970 266.737,17 0,64 0,63

BANRISUL - 12.169,00 BRL 15,510 69.917,09 0,17 0,17

BM&F BOVESPA SA - 101.400,00 BRL 14,000 525.875,16 1,26 1,25

BR MALLS PARTICIPACOES SA - 26.400,00 BRL 27,020 264.244,49 0,63 0,63

BR PROPERTIES SA - 12.000,00 BRL 25,500 113.354,32 0,27 0,27

BRADESPAR S.A. PREF 14.400,00 BRL 32,830 175.125,76 0,42 0,42

BRASIL TELECOM PARTICIPACOES S.A. PREF 53.102,00 BRL 8,320 163.663,14 0,39 0,39

BRASKEM SA PREF 10.000,00 BRL 12,800 47.416,19 0,11 0,11

BRF - BRASIL FOODS SA - 41.400,00 BRL 42,190 647.033,15 1,54 1,54

CEMIG-CIA ENERGETICA DE MINAS GERAIS PREF 30.397,00 BRL 22,600 254.481,27 0,61 0,60

CETIP SA - BALCAO ORGANIZADO DE ATI - 13.479,00 BRL 25,390 126.776,00 0,30 0,30

CIA BRAS DISTRIB GRUPO PAO DE ACUCAR PREF B 6.203,00 BRL 90,500 207.953,88 0,50 0,49

CIA DE CONCESSOES RODOVIARIAS - 55.900,00 BRL 19,450 402.761,62 0,96 0,96

CIA DE SANEAMENTO DE MINAS GER - 4.000,00 BRL 43,750 64.826,82 0,16 0,15

CIA ENERGETICA DE SP - 10.800,00 BRL 19,390 77.574,37 0,19 0,18

CIA HERING - 8.800,00 BRL 41,990 136.881,64 0,33 0,33

CIA PARANAENSE DE ENERGIA-COPEL PREF 6.500,00 BRL 31,700 76.328,95 0,18 0,18

COMPANHIA BRASILEIRA DE MEIOS - 18.640,00 BRL 56,990 393.514,95 0,94 0,93

COSAN SA INDUSTRIA COMERCIO - 7.700,00 BRL 41,750 119.086,87 0,28 0,28

CPFL ENERGIA SA - 15.200,00 BRL 21,400 120.496,39 0,29 0,29

CSN-CIA SIDERURGICA NACIONAL S.A. - 45.904,00 BRL 11,860 201.674,92 0,48 0,48

CVRD-CIA VALE DO RIO DOCE PREF A 126.868,00 BRL 40,870 1.920.761,31 4,58 4,56

CYRELA BRAZIL REALTY SA - 19.200,00 BRL 17,890 127.241,34 0,30 0,30

DIAGNOSTICOS DA AMERICA - 14.800,00 BRL 13,190 72.314,13 0,17 0,17

DURATEX SA - 15.680,00 BRL 14,850 86.255,97 0,21 0,21

ECORODOVIA INFRASTRUTURA E LOGIS - 11.000,00 BRL 17,300 70.494,54 0,17 0,17

ELETROBRAS-CENTR ELETRICAS BRAS S.A. - 19.667,00 BRL 6,330 46.116,73 0,11 0,11 ELETROBRAS-CENTR ELETRICAS BRAS S.A. PREF "B" 15.300,00 BRL 10,480 59.397,67 0,14 0,14

ELETROPAULO METROPOLITANA S.A. PREF B 6.080,00 BRL 16,800 37.838,12 0,09 0,09

EMBRAER SA - 35.100,00 BRL 14,450 187.884,79 0,45 0,45

ENERGIAS DO BRASIL SA - 16.000,00 BRL 12,490 74.028,52 0,18 0,18

FIBRIA CELULOSE SA - 15.769,00 BRL 22,570 131.841,57 0,32 0,31

GERDAU SA PREF 54.400,00 BRL 17,930 361.323,21 0,86 0,86

HYPERMARCAS SA - 21.800,00 BRL 16,620 134.215,97 0,32 0,32

IKPC-INDS KLABIN DE PAPEL E CELULOSE PREF 28.500,00 BRL 12,790 135.030,56 0,32 0,32

ITAU UNIBANCO HOLDINGS SA PREF PREF 144.500,00 BRL 33,390 1.787.314,32 4,27 4,24

ITAUSA-INVESTIMENTOS ITAU SA - 160.311,00 BRL 9,690 575.444,93 1,37 1,37

JBS SA - 26.289,00 BRL 6,000 58.430,82 0,14 0,14

KROTON EDUCACIONAL SA - 4.700,00 BRL 46,250 80.524,17 0,19 0,19

LIGHT SA - 3.900,00 BRL 22,320 32.245,97 0,08 0,08

LOCALIZA RENT A CAR - 8.300,00 BRL 37,500 115.299,13 0,28 0,27

LOJAS AMERICANAS SA - 8.100,00 BRL 17,820 53.469,90 0,13 0,13

LOJAS AMERICANAS SA -PREF- 25.667,00 BRL 18,330 174.282,69 0,42 0,41

LOJAS RENNER SA - 7.800,00 BRL 79,750 230.431,56 0,55 0,55

MARCOPOLO SA MARCOPOLO SA -PREF 13.000,00 BRL 12,900 62.122,62 0,15 0,15

METALURGICA GERDAU SA - 17.400,00 BRL 22,900 147.605,11 0,35 0,35

MPX ENERGIA SA - 9.000,00 BRL 11,150 37.173,55 0,09 0,09

MRV ENGENHARIA E PARTICIPACOES SA - 19.807,00 BRL 11,980 87.900,67 0,21 0,21

MULTIPLAN EMPREENDIMENTOS IMOB - 4.800,00 BRL 60,200 107.042,04 0,26 0,25

MULTIPLUS SA - 3.000,00 BRL 47,720 53.032,04 0,13 0,13

NATURA COSMETICOS SA - 11.100,00 BRL 58,640 241.120,21 0,58 0,57

ODONTOPREV SA - 16.800,00 BRL 10,730 66.776,81 0,16 0,16

OGX PETROLEO E GAS PARTICIPACO - 81.900,00 BRL 4,380 132.884,61 0,32 0,32

OI SA - 16.615,00 BRL 9,160 56.378,37 0,14 0,13

PDG REALTY SA EMPREENDIMENTOS - 76.000,00 BRL 3,310 93.187,63 0,22 0,22

PETROBRAS-PETROLEO BRASILEIRO S.A. - 188.576,00 BRL 19,550 1.365.682,83 3,26 3,24

PETROBRAS-PETROLEO BRASILEIRO S.A. PREF 266.087,00 BRL 19,520 1.924.066,77 4,59 4,57

PORTO SEGURO SA - 7.800,00 BRL 23,490 67.872,57 0,16 0,16

QUALICORP SA - 9.200,00 BRL 21,210 72.284,50 0,17 0,17

RAIA DROGASIL SA - 12.700,00 BRL 23,070 108.534,54 0,26 0,26

SABESP-CIA SANEAM. BASICO SAO PAULO - 7.180,00 BRL 86,870 231.052,64 0,55 0,55

SOUZA CRUZ S.A. - 24.200,00 BRL 30,810 276.200,04 0,66 0,66

SUL AMERICA SA - 7.138,00 BRL 17,700 46.802,22 0,11 0,11

TELEF BRASIL PREF 18.817,00 BRL 49,000 341.556,95 0,82 0,81

TIM PARTICIPACOES SA - 53.551,00 BRL 8,200 162.666,49 0,39 0,39

TOTVS SA - 7.200,00 BRL 40,390 107.726,62 0,26 0,26

TRACTEBEL ENERGIA SA - 10.700,00 BRL 33,350 132.189,29 0,32 0,31

ULTRAPAR PARTICIPACOES SA - 20.700,00 BRL 46,290 354.955,73 0,85 0,84

USIMINAS-USINAS SIDER. MINAS GERAIS PREF 24.100,00 BRL 12,800 114.273,01 0,27 0,27

VALE SA - 82.932,00 BRL 42,280 1.298.894,22 3,10 3,08

WEG SA - 13.700,00 BRL 27,000 137.025,38 0,33 0,33

Chile

BANCO DE CHILE "ADR" 6.899,00 USD 96,500 504.970,80 1,21 1,20

BANCO SANTANDER CHILE ADR 27.261,00 USD 28,490 589.097,31 1,41 1,40

COMP. CERVEC. UNIDAS ADS 18.559,00 USD 31,630 445.252,71 1,06 1,06

ENDESA CHILE ADR 16.761,00 USD 48,810 620.528,22 1,48 1,47

ENERSIS SA SP ADR 42.429,00 USD 18,220 586.359,51 1,40 1,39

SOC QUIMICA MINERA CHILE SA ADR "B" 13.947,00 USD 57,640 609.758,10 1,46 1,45

Colombia

ALMACENES EXITO SA - 15.001,00 COP 35.500,000 228.594,27 0,55 0,54

BANCO DAVIVIENDA SA - 10.184,00 COP 23.480,000 102.643,93 0,25 0,24

BANCOLOMBIA SA - 12.113,00 COP 30.000,000 155.987,48 0,37 0,37

BANCOLOMBIA SA PREF 17.848,00 COP 29.820,000 228.462,00 0,55 0,54

CEMENTOS ARGOS SA - 30.030,00 COP 10.100,000 130.194,75 0,31 0,31

CORP FINANCIERA COLOMBIANA SA - 4.039,00 COP 36.480,000 63.247,81 0,15 0,15

ECOPETROL SA - 276.650,00 COP 5.460,000 648.395,65 1,55 1,54

GRUPO AVAL ACCIONES Y VALORES - 179.841,00 COP 1.300,000 100.357,27 0,24 0,24

GRUPO DE INVERSIONES SURAMERIC - 14.291,00 COP 38.000,000 233.111,12 0,56 0,55

GRUPO DE INVERSIONES SURAMERIC - 9.176,00 COP 39.000,000 153.615,41 0,37 0,37

INTERCONEXION ELECTRICIA SA - 20.986,00 COP 9.600,000 86.480,40 0,21 0,21

INVERSIONES ARGOS SA - 23.716,00 COP 21.000,000 213.785,14 0,51 0,51 INVERSIONES ARGOS SA PREF INVERSIONES ARGOS SA 6.510,00 COP 21.320,000 59.577,87 0,14 0,14

ISAGEN SA ESP - 103.535,00 COP 2.505,000 111.329,87 0,27 0,26

Luxembourg

DB X-TRACKERS MSCI EM LATIN 31.600,00 USD 56,935 1.364.643,51 3,26 3,24

Mexico

ALFA SA DE CV - 179.510,00 MXN 27,380 287.076,76 0,69 0,68

ALPEK SA DE CV - 25.000,00 MXN 34,830 50.859,19 0,12 0,12

AMERICA MOVIL S.A. DE C.V. ADR "L" 123.550,00 USD 23,140 2.168.497,42 5,18 5,15

ARCA CONTINENTAL SAB DE CV - 21.200,00 MXN 96,090 118.984,39 0,28 0,28

AXTEL SAB DE CV - 82,00 MXN 2,910 13,94

BIMBO - 104.148,00 MXN 33,470 203.602,26 0,49 0,48

CEMEX S.A. DE C.V. CPO 670.544,00 MXN 12,700 497.401,34 1,19 1,18

COCA-COLA FEMSA -L- 27.369,00 MXN 191,340 305.872,65 0,73 0,73

COMPARTAMOS SAB DE CV - 68.744,00 MXN 18,370 73.759,83 0,18 0,18

CONTR. COM. MEXICANA SA -UNIT- 24.457,00 MXN 45,280 64.682,31 0,15 0,15

EL PUERTO DE LIVERPOOL SAB DE - 12.000,00 MXN 135,510 94.979,21 0,23 0,23

FEMSA - 123.100,00 MXN 129,310 929.749,84 2,22 2,21

GRUPO AEROPORTUARIO DE SURESTE SA -B- 13.100,00 MXN 146,400 112.018,13 0,27 0,27

GRUPO AEROPORTUARIO DEL PACIFICO SA -B- 20.800,00 MXN 73,570 89.379,94 0,21 0,21

GRUPO CARSO SA SER A1 36.176,00 MXN 62,550 132.167,24 0,32 0,31

GRUPO FIN.INBURSA 'O' 126.104,00 MXN 39,210 288.802,97 0,69 0,69

GRUPO FINANC NORTE "O" 118.713,00 MXN 83,450 578.629,49 1,38 1,37

GRUPO FINANCIERO SANTANDER MEX - 94.600,00 MXN 41,820 231.074,02 0,55 0,55

GRUPO MODELA "C" 40.184,00 MXN 116,020 272.308,99 0,65 0,65

GRUPO TELEVISA S.A. -CPO- 162.800,00 MXN 68,250 648.982,52 1,55 1,54

GRUPOMEXICO SA -B- 241.990,00 MXN 46,750 660.777,10 1,58 1,57

IND. PENOLES SA -CP- 8.833,00 MXN 650,930 335.829,21 0,80 0,80

INDUSTRIAS CH SAB DE CV - 11.000,00 MXN 97,620 62.720,20 0,15 0,15

KIMBERLY "A" 98.465,00 MXN 32,960 189.559,27 0,45 0,45

MEXICHEM SAB DE CV - 65.317,00 MXN 72,110 275.104,49 0,66 0,65

MINERA FRISCO SAB DE CV - 40.276,00 MXN 54,440 128.067,93 0,31 0,30

WAL-MART DE MEXICO SA DE CV "V" 336.800,00 MXN 42,330 832.714,83 1,99 1,98

Peru

CIA DE MINAS BUENAVENTURA SA - 25.808,00 USD 35,950 703.729,98 1,68 1,67

CREDICORP LTD. - 2.721,00 USD 146,560 302.480,10 0,72 0,72

CREDICORP LTD. - 2.534,00 USD 146,000 280.615,90 0,67 0,67

SOUTHERN COPPER CORP (NYSE) 4.757,00 USD 37,860 136.604,99 0,33 0,32

Venezuela

BANCO PROVINCIAL SA - 4.283,00 VEF 164,990 0,71

BANCO VENEZOLANO DE CREDITO - 10,00 VEF 3.300,000 0,03

CANTV-CIA ANON NAC TEL DE VENEZUELA -D- 113.652,00 VEF 17,500 1,99

CEMEX VENEZUELA S.A.C.A. -II- 1,00 VEF 0,700 0,00

MERCANTIL SERVICIOS FINANCIEROS C.A. -A- 4.530,00 VEF 140,000 0,63

MERCANTIL SERVICIOS FINANCIEROS C.A. -B- 9.750,00 VEF 135,000 1,32

Total shares 41.897.515,81 100,00 99,48

Rights

Brazil

MMX MINERACAO E METALICOS SA CP 05/12/12 7.042,00 BRL 0,400 1.043,45 0,00 0,00

Total rights 1.043,45 0,00 0,00

TOTAL SECURITIES PORTFOLIO 41.898.559,26 100,00 99,48

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CAD 201,10 CAD 1,000 153,20

KBC GROUP EURO 47.936,93 EUR 1,000 47.936,93 0,11

KBC GROUP GBP 159,41 GBP 1,000 196,54

KBC GROUP MXN 214.928,00 MXN 1,000 12.553,62 0,03

KBC GROUP USD -99.936,07 USD 1,000 -75.801,02 -0,18

Total demand accounts -14.960,73 -0,04

TOTAL CASH AT BANK AND IN HAND -14.960,73 -0,04

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP BRL RECEIVABLE 319.053,20 BRL 1,000 118.189,74 0,28

KBC GROUP EUR RECEIVABLE 26.184,76 EUR 1,000 26.184,76 0,06

KBC GROUP MXN RECEIVABLE 34.097,04 MXN 1,000 1.991,56 0,01

Total receivables 146.366,06 0,35

Payables

Belgium

KBC GROUP EUR PAYABLE -78.767,50 EUR 1,000 -78.767,50 -0,19

Payables -78.767,50 -0,19

TOTAL RECEIVABLES AND PAYABLES 67.598,56 0,16

OTHER

Interest receivable EUR 203.560,81 0,48

Accrued interest EUR 31,01

Expenses payable EUR -36.757,16 -0,09

TOTAL OTHER 166.834,66 0,40

TOTAL NET ASSETS 42.118.031,75 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Argentinia 0,39 0,63 0,51 0,48 Brazil 67,65 63,94 59,25 55,86 Chile 7,31 7,65 9,01 8,01 Colombia 3,38 3,98 5,56 6,00 Luxembourg 0,00 1,08 0,00 3,26 Mexico 19,12 20,02 22,65 22,99 Peru 2,15 2,70 3,02 3,40 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 39,45 37,43 34,52 32,42 Consum(cycl) 4,56 4,21 4,87 5,24 Cons.goods 12,03 15,01 15,29 16,98 Pharma 0,95 0,76 0,79 1,04 Financials 23,47 23,70 23,40 28,84 Technology 0,81 0,92 1,05 0,26 Telecomm. 8,34 8,35 9,07 6,90 Utilities 8,19 7,86 9,34 6,68 Real est. 2,20 1,76 1,67 1,64 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 ARS 0,32 0,53 0,45 0,40 BRL 67,79 63,81 59,41 56,07 COP 3,38 3,97 5,57 6,00 EUR -0,11 0,11 -0,35 -0,01 MXN 13,31 14,03 15,86 17,83 PEN 0,76 0,00 0,00 0,00 USD 14,55 17,55 19,06 19,71 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND LATIN AMERICA (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 6.332.238,40 9.540.675,80 15.872.914,20 Sales 10.533.095,21 8.074.953,29 18.608.048,50 Total 1 16.865.333,61 17.615.629,09 34.480.962,70 Subscriptions 6.276.588,78 7.602.410,26 13.878.999,04 Redemptions 11.539.370,27 6.102.550,71 17.641.920,98 Total 2 17.815.959,05 13.704.960,97 31.520.920,02 Monthly average of total assets

47.205.217,76 41.608.418,98 44.406.818,37

Turnover rate -2,01 % 9,40 % 6,66 %

1st half of year 2nd half of year YearPurchases 6.332.238,40 9.540.675,80 15.872.914,20 Sales 10.533.095,21 8.074.953,29 18.608.048,50 Total 1 16.865.333,61 17.615.629,09 34.480.962,70 Subscriptions 6.276.588,78 7.602.410,26 13.878.999,04 Redemptions 11.539.370,27 6.102.550,71 17.641.920,98 Total 2 17.815.959,05 13.704.960,97 31.520.920,02 Monthly average of total assets

49.026.582,72 40.651.435,76 41.855.807,14

Corrected turnover rate -1,94 % 9,62 % 7,07 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS Nil

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 35.521,65 2.202,93 35.133,07 1.639,40 50.465,70 4.754,41 55.220,11

2011 - 12 19.146,24 1.001,96 39.525,23 1.905,94 30.086,71 3.850,44 33.937,15

2012 - 12 9.315,16 625,92 11.370,40 1.369,92 28.031,47 3.106,44 31.137,91

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 51.682.146,11 2.284.667,92 50.402.810,64 1.644.600,98

2011 - 12 28.505.609,02 1.026.391,80 55.110.120,80 1.973.779,36

2012 - 12 13.286.509,27 616.381,05 15.830.174,45 1.330.072,81

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 88.851.555,59 1.652,71 1.145,55

2011 - 12 43.853.809,22 1.339,41 923,36

2012 - 12 42.118.031,75 1.397,29 949,63

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0146026415 EUR 3.62% 6.99% 0.08% 3.02% 0.49% 1.98% 18.25% 28/01/1994 5.61%

DIV BE0152246535 EUR 3.62% 6.99% 0.07% 3.02% 0.48% 1.98% 18.23% 28/01/1994 7.75%

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

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 28/03/2013: 9.40 EUR net (12.53 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Distribution: 1.644% Capitalization: 1.648% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 6,836 3,709 54.26%

CSFBSAS 1,220 763 62.50%

DEUTSCHE 12,261 6,573 53.61%

MERRILL 229 143 62.50%

MORGAN STANLEY 3,529 1,845 52.29%

NOMURA 3,766 2,008 53.31%

UBSWDR 930 582 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.6% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.6% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to -31,01 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Flanders

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND FLANDERS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 27 June 1997 Initial subscription price: 20000 BEF Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED The assets are invested primarily in shares with a Flemish character where conditions are such as to allow accelerated economic growth in the short or medium term.

RISK CONCENTRATION Shares with a Flemish character.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Real GDP in the EMU contracted by an annualised 0.3%. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany played its traditional role as European economic engine to a lesser extent than in the recent past. Greater divergence within Europe resulted primarily in a further decline in unemployment in Germany and an alarmingly rapid rise in joblessness in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. The European debt crisis continued to hang over the economy of the EMU in 2012 like the sword of Damocles. Following the ECB's long-term refinancing operations (LTROs) of December 2011 and February 2012, it appeared for a short while as though the central bank had pumped enough cash into the financial markets to take away the uncertainty for a time, but the numbing effect of these LTROs proved to be short lived. The flaring up of problems with the banks in Spain and speculation about Greece exiting the euro area caused the crisis to explode again in the second quarter of 2012. During the summer months the Belgian shares responded positively to the statement by Mario Draghi, the President of the European Central Bank, that the euro would be defended at any cost. In September the ECB launched its Outright Monetary Transactions (OMT) programme, under which unlimited purchases will be made of short-dated (up to three years) government bonds issued by struggling countries, provided certain conditions are met. Following a consolidation the Bel20 continued its rally in the second half of the fourth quarter.

KBC Equity Fund Flanders shareholders obtained a positive return (in euros) of more than 32% in 2012. The fund performed significantly better than the Bel20 index thanks to the relatively good performance of, among others, Thrombogenics, Jensen, Galapagos, Kinepolis, Arseus, Exmar and Barco. The positions in Bekaert, Nyrstar and Realdolmen dragged down the fund’s relative performance. Within the Bel20 KBC and Ageas recorded the strongest performance. Solvay and AB InBev, which acquired the Mexican market leader Modelo, were once again star performers. D’Ieteren, Mobistar and especially Delhaize, which is grappling with structural problems in its two main markets, were the main disappointments during the period under review.

2.1.8 FUTURE POLICY Europe remains in a low-growth environment, with no underlying inflationary pressure, low interest rates and runaway public finances. The need to strengthen its internal mechanisms is becoming a matter of urgency for the euro area. This involves measures such as supranational supervision of banks, strict monitoring and sanctioning of budgetary policy, monitoring of pay policy and harmonising European taxation. There is no urgent macroeconomic reason to increase the exceptionally low money market rates so long as the economic situation in the West remains weak and there is no sign of any real inflationary pressures. KBC Equity Fund Flanders focuses primarily on Flemish stocks with above-average growth potential in the years ahead. This means, for instance, large Flemish companies like AB InBev, KBC, Ackermans & van Haaren and Colruyt, cyclical and growth stocks such as Bekaert, Nyrstar, CMB, Euronav, Barco, Recticel and Melexis, and pharmaceutical and biotech companies like Arseus, Thrombogenics, Galapagos and Ablynx, and a number of defensive stocks such as Van de Velde and Miko. The fund also invests in a number of company-specific themes, such as CFE, Tessenderlo Chemie, Sipef and Kinepolis. The evolution of the European debt crisis and the associated credibility of the euro remain crucial to share price trends in the European and Belgian banking sectors. This problem remains as serious as ever due to the approach adopted by European leaders. We will be monitoring this closely.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 21.204.926,27 16.034.137,81

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 145.852,46 139.864,73 C. Shares and similar instruments a) Shares 20.454.665,62 15.673.677,78 Of which securities lent 134.640,62 152.551,67 b) Closed-end undertakings for collective

investment 13.486,20 11.238,50

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 26.264,34 97,66 b) Tax assets 262.220,92 267.195,40 B. Payables a) Accounts payable (-) -61.632,17 -1,42 d) Collateral (-) -145.852,46 -139.864,73

V. Deposits and cash at bank and in hand A. Demand balances at banks 538.934,07 94.687,02

VI. Accruals and deferrals A. Expense to be carried forward 1.049,99 B. Accrued income 66,33 2.395,99 C. Accrued expense (-) -29.079,04 -16.203,11

TOTAL SHAREHOLDERS' EQUITY 21.204.926,27 16.034.137,81

A. Capital 8.764.795,69 9.107.345,16

B. Income equalization -26.088,49 -36.649,68

C. Profit(Loss) carried forward 6.904.253,30 13.586.603,23

D. Result for the period 5.561.965,77 -6.623.160,90

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 145.852,46 139.864,73

IX Financial instruments lent 134.640,62 152.551,67

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 5.374.321,25 -6.782.088,29 b) Closed-end undertakings for collective

investment 2.247,70 -1.324,96

D. Other securities -0,67 -12,79 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -4,17 8,68

II. Investment income and expenses A. Dividends 541.342,14 559.351,34 B. Interests a) Securities and money market instruments 3.380,04 7.894,27 b) Cash at bank and in hand and deposits 981,77 2.827,51 C. Interest on borrowings (-) -968,48 -7.680,01

III. Other income B. Other 1.332,24

IV. Operating expenses A. Investment transaction and delivery costs (-) -39.962,21 -47.319,60 B. Financial expenses (-) -253,48 -1.969,13 C. Custodian's fee (-) -13.597,92 -22.256,04 D. Manager's fee (-) a) Financial management -260.019,11 -284.979,77 b) Administration and accounting management -19.685,33 -21.454,87 E. Administrative expenses (-) -97,99 -59,84 F. Formation and organisation expenses (-) -1.635,59 -2.562,98 G. Remuneration, social security charges and

pension -5,17

H. Services and sundry goods (-) -4.004,46 -4.765,19 J. Taxes -16.280,74 -15.271,78 K. Other expenses (-) -3.796,98 -2.824,52

Income and expenditure for the period Subtotal II + III + IV 185.401,66 160.256,46

V. Profit (loss) on ordinary activities before tax 5.561.965,77 -6.623.160,90

VII. Result for the period 5.561.965,77 -6.623.160,90

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 12.440.130,58 6.926.792,65 Profit (loss) brought forward from the previous

financial year 6.904.253,30 13.586.603,23

Profit for the period available for appropriation 5.561.965,77 -6.623.160,90 Income on the creation of shares (income on the

cancellation of shares) -26.088,49 -36.649,68

II. (Appropriations to) Deductions from capital -12.417.031,42

III. Profit (loss) to be carried forward 6.904.253,30

IV. (Dividends to be paid out) -23.099,16 -22.539,35

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND FLANDERS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Closed-end funds

Listed closed-end investment funds

Belgium

QUEST FOR GROWTH - 2.366,00 EUR 5,700 13.486,20 0,07 0,06

Total investment funds 13.486,20 0,07 0,06

Shares

Exchange-listed shares

Belgium

ABLYNX - 19.370,00 EUR 5,850 113.314,50 0,55 0,53

ABLYNX STRIP-VVPR 20.000,00 EUR 0,001 20,00

ACKERMANS VH NV - 9.735,00 EUR 62,270 606.198,45 2,96 2,86

AGEAS NV - 10.407,00 EUR 22,215 231.191,51 1,13 1,09

AGFA GEVAERT STRIP VVPR 58.203,00 EUR 0,001 58,20

ANHEUSER-BUSCH INBEV NV - 22.825,00 EUR 65,740 1.500.515,50 7,33 7,08

ANHEUSER-BUSCH INBEV NV STRIP-VVPR 38.912,00 EUR 0,001 38,91

ARSEUS NV - 38.466,00 EUR 15,500 596.223,00 2,91 2,81

ARSEUS NV STRIP VVPR 10.868,00 EUR 0,001 10,87

BARCO NV NEW 11.583,00 EUR 54,500 631.273,50 3,08 2,98

BEKAERT - 52.889,00 EUR 21,875 1.156.946,88 5,65 5,46

BELGACOM - 15.000,00 EUR 22,205 333.075,00 1,63 1,57

C.F.E. (BRU) 18.840,00 EUR 43,840 825.945,60 4,04 3,90

C.M.B. - 17.171,00 EUR 14,360 246.575,56 1,21 1,16

COLRUYT - 16.417,00 EUR 37,500 615.637,50 3,01 2,90

DECEUNINCK - 163.934,00 EUR 1,160 190.163,44 0,93 0,90

DEVGEN STRIP-VVPR 20.000,00 EUR 0,000 2,00

DUVEL - MOORTGAT (BRU) 1.998,00 EUR 94,500 188.811,00 0,92 0,89

ECODIS - 13.393,00 EUR 0,070 937,51 0,01 0,00

ECONOCOM GROUP - 19.000,00 EUR 5,950 113.050,00 0,55 0,53

EURONAV SA - 63.318,00 EUR 4,590 290.629,62 1,42 1,37

EVS BROADCAST EQUIPMENT (BRU) 6.246,00 EUR 44,400 277.322,40 1,36 1,31

EXMAR NV - 52.398,00 EUR 7,690 402.940,62 1,97 1,90

EXMAR NV VVPR - STRIP 27.795,00 EUR 0,001 27,80

FINANCIERE DE TUBIZE (BRU) 4.658,00 EUR 32,260 150.267,08 0,73 0,71

GALAPAGOS GENOMICS NV - 18.867,00 EUR 15,810 298.287,27 1,46 1,41

GIMV - 2.911,00 EUR 37,930 110.414,23 0,54 0,52

IBA ION BEAM - 30.953,00 EUR 5,530 171.170,09 0,84 0,81

JENSEN-GROUP NV (BRU) 25.578,00 EUR 11,550 295.425,90 1,44 1,39

KBC ANCORA - 86.764,00 EUR 12,950 1.123.593,80 5,49 5,30

KBC GROUP - 77.627,00 EUR 26,150 2.029.946,05 9,92 9,57

KINEPOLIS GROUP (BRU) 4.516,00 EUR 81,990 370.266,84 1,81 1,75

LOTUS BAKERIES (BRU) 250,00 EUR 555,000 138.750,00 0,68 0,65

MDXHEALTH - 3.184,00 EUR 2,000 6.368,00 0,03 0,03

MELEXIS NV - 38.623,00 EUR 12,880 497.464,24 2,43 2,35

MIKO - 9.501,00 EUR 50,540 480.180,54 2,35 2,26

MOBISTAR - 10.000,00 EUR 19,390 193.900,00 0,95 0,91

NYRSTAR - 65.871,00 EUR 4,494 296.024,27 1,45 1,40

NYRSTAR STRIP VVPR 47.691,00 EUR 0,001 47,69

PINGUIN - 11.967,00 EUR 11,350 135.825,45 0,66 0,64

PINGUIN STRIP VVPR 6.446,00 EUR 0,001 6,45

PUNCH INTERNATIONAL (BRU) 13.485,00 EUR 3,270 44.095,95 0,22 0,21

PUNCH INTERNATIONAL VVPR STRIP 16.028,00 EUR 0,003 48,08

REALDOLMEN BONUS 01/04/09 16.257,00 EUR 16,500 268.240,50 1,31 1,27

REALDOLMEN STRIP VVPR BONUS 01/04/09 12.482,00 EUR 0,001 12,48

REALDOLMEN STRIP-VVPR 19,00 EUR 0,001 0,02

RECTICEL - 84.611,00 EUR 5,270 445.899,97 2,18 2,10

RESILUX (BRU) 3.250,00 EUR 53,490 173.842,50 0,85 0,82

RHJ INTERNATIONAL - 41.571,00 EUR 3,990 165.868,29 0,81 0,78

ROULARTA MEDIA GROUP (BRU) STRIP-VVPR 1.422,00 EUR 0,001 1,42

ROULARTA MEDIA GROUP - 14.643,00 EUR 10,320 151.115,76 0,74 0,71

SIOEN INDUSTRIES - 23.811,00 EUR 6,600 157.152,60 0,77 0,74

SIPEF (BRU) 8.355,00 EUR 58,500 488.767,50 2,39 2,31

SOLVAY - 461,00 EUR 109,350 50.410,35 0,25 0,24

SPECTOR (BRU) STRIP-VVPR 125.000,00 EUR 0,001 125,00 0,00 0,00

TELENET - 5.325,00 EUR 35,650 189.836,25 0,93 0,90

TER BEKE (BRU) 2.314,00 EUR 48,000 111.072,00 0,54 0,52

TESSENDERLO (BRU) STRIP-VVPR 1.937,00 EUR 0,008 15,50

TESSENDERLO - 35.594,00 EUR 24,840 884.154,96 4,32 4,17

THROMBOGENICS NV - 6.601,00 EUR 42,050 277.572,05 1,36 1,31

THROMBOGENICS NV STRIP-VVPR 38.750,00 EUR 0,002 77,50

UMICORE - 35.948,00 EUR 41,690 1.498.672,12 7,32 7,07

VAN DE VELDE - 10.789,00 EUR 34,200 368.983,80 1,80 1,74

WAREHOUSE DISTR. DE PAUW - 1.706,00 EUR 47,240 80.591,44 0,39 0,38

France

GDF SUEZ - 11.341,00 EUR 15,575 176.636,08 0,86 0,83

Netherlands

ADVANCED METALLURGICAL GROUP - 5.000,00 EUR 6,490 32.450,00 0,16 0,15

AEGON - 30.476,00 EUR 4,803 146.376,23 0,72 0,69

ZIGGO BV - 5.000,00 EUR 24,760 123.800,00 0,61 0,58

Total shares 20.454.665,62 99,93 96,46

TOTAL SECURITIES PORTFOLIO 20.468.151,82 100,00 96,53

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 145.852,46 EUR 1,000 145.852,46 0,69

TOTAL RECEIVED COLLATERAL 145.852,46 0,69

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO 538.664,61 EUR 1,000 538.664,61 2,54

KBC GROUP USD 355,26 USD 1,000 269,46 0,00

Total demand accounts 538.934,07 2,54

TOTAL CASH AT BANK AND IN HAND 538.934,07 2,54

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 26.264,34 EUR 1,000 26.264,34 0,12

KBC GROUP WHT TO BE RECOVERED EUR 262.220,92 EUR 1,000 262.220,92 1,24

Total receivables 288.485,26 1,36

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-145.852,46 EUR 1,000 -145.852,46 -0,69

KBC GROUP EUR PAYABLE -61.632,17 EUR 1,000 -61.632,17 -0,29

Payables -207.484,63 -0,98

TOTAL RECEIVABLES AND PAYABLES 81.000,63 0,38

OTHER

Accrued interest EUR 66,33

Expenses payable EUR -29.079,04 -0,14

TOTAL OTHER -29.012,71 -0,14

TOTAL NET ASSETS 21.204.926,27 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium 100,00 100,00 96,40 97,66 France 0,00 0,00 3,43 0,86 Netherlands 0,00 0,00 0,17 1,48 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 25,96 27,21 24,15 30,33 Consum(cycl) 12,73 16,20 12,04 12,04 Cons.goods 18,85 18,89 23,14 15,59 Pharma 14,83 13,05 7,82 7,18 Financials 18,29 13,63 17,65 22,39 Technology 6,66 8,10 7,09 7,41 Telecomm. 2,62 2,84 4,60 4,12 Utilities 0,00 0,01 3,45 0,87 Unit trusts 0,06 0,07 0,06 0,07 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 EUR 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND FLANDERS (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 13.348.216,68 7.928.245,63 21.276.462,30 Sales 11.522.258,81 10.347.537,76 21.869.796,58 Total 1 24.870.475,49 18.275.783,39 43.146.258,88 Subscriptions 3.688.336,23 1.787.395,36 5.475.731,59 Redemptions 2.186.973,35 3.631.729,29 5.818.702,64 Total 2 5.875.309,58 5.419.124,65 11.294.434,23 Monthly average of total assets

19.155.996,02 20.777.279,77 19.973.123,03

Turnover rate 99,16 % 61,88 % 159,47 %

1st half of year 2nd half of year YearPurchases 13.348.216,68 7.928.245,63 21.276.462,30 Sales 11.522.258,81 10.347.537,76 21.869.796,58 Total 1 24.870.475,49 18.275.783,39 43.146.258,88 Subscriptions 3.688.336,23 1.787.395,36 5.475.731,59 Redemptions 2.186.973,35 3.631.729,29 5.818.702,64 Total 2 5.875.309,58 5.419.124,65 11.294.434,23 Monthly average of total assets

18.859.565,63 19.766.094,87 19.044.666,99

Corrected turnover rate 100,72 % 65,04 % 167,25 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 145.852,46 145.852,46 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 6.305,15 349,31 7.139,52 879,25 16.579,05 3.042,09 19.621,14

2011 - 12 1.185,64 301,44 5.147,10 761,70 12.617,60 2.581,83 15.199,42

2012 - 12 4.160,27 236,23 4.068,74 577,10 12.709,13 2.240,96 14.950,09

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 8.700.012,80 372.638,74 9.941.780,24 935.340,18

2011 - 12 1.746.088,78 332.816,57 7.551.753,61 850.369,12

2012 - 12 5.261.467,97 229.073,46 5.311.389,05 548.211,92

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 28.992.376,81 1.535,82 1.160,35

2011 - 12 16.034.137,81 1.101,14 829,03

2012 - 12 21.204.926,27 1.474,46 1.100,37

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0164243223 EUR 32.83% 5.85% -0.87% 0.1119 27/06/1997 7.22%

DIV BE0164244239 EUR 32.83% 5.85% -0.87% 0.1117 27/06/1997 7.21%

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

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 28/03/2013: 7.73 EUR net (10.31 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Distribution: 1.612% Capitalization: 1.611% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 324 144 44.44%

CSFBSAS 139 62 44.45%

DEUTSCHE 4,517 2,250 49.81%

NOMURA 282 141 50.00%

SOCGEN 106 53 50.00%

UBSWDR 230 115 50.00%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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.

Name Maximum management feeKBC Equity Fund-Flanders 1,50

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 5.642,90 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

BEKAERT EUR 6.155 21,875 134.640,62

Total 134.640,62

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 18.000 EUR 19.844,50

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 103.000 EUR 115.412,84

FRANCE - 08/14 3.00% 12/07 EUR 10.000 EUR 10.595,12

Total 145.852,46 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Utilities

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND UTILITIES

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 31 December 1998 Initial subscription price: 20000 BEF Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of public utility companies in countries where conditions are such as to ensure accelerated economic growth in the short or medium term.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate throughout 2012. The debt crisis in Europe continued to rage unabated. Five euro countries requested a bailout from the European emergency fund. Greece reached agreements with its private sector creditors on two occasions in the span of one year on restructuring the bond debt it owes them. Spain found itself in the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the existence of the euro was not at issue. A new feature of this crisis compared to previous ones is that government paper, which had previously been seen as entirely risk-free, also started to be tainted with a degree of credit risk. What started as an isolated problem on the periphery of the euro area developed into an issue concerning the credibility of the monetary union and its institutions. In autumn 2009 – three years ago already – it became clear that Greece's official statistics had painted a highly flattering picture of its public finances; as a result, bond investors lost confidence and many refused to continue to fund Greece. After Greece had elaborated its own bailout programme (April 2010), it rapidly became clear that the EMU needed a structured bailout framework. This initially took the form of the European Financial Stability Facility (EFSF, May 2010) and from 1 October 2012 the permanent European Stability Mechanism (ESM), a fully-fledged supranational institution with its own legal personality. The Greek debacle and lack of political consensus on a blueprint for a renewed currency union continued to fuel mistrust among bond investors. Ireland (November 2010), Portugal (April 2011), once again Greece (July 2011), Cyprus (June 2012) and Spain (with the bailout fund for the banks in June 2012) had to concede that they were no longer able to raise funds in the market and took shelter under the European umbrella. In the course of 2012 the markets shifted their attention from Greece to Spain. The Spanish government has already drawn on the EFSF for the recapitalisation of its banks. In the meantime other problems are also attracting attention: the recession is deeper than had been thought, the austerity policy was already revised as many as four times in the course of 2012 and regional finances are seriously dislocated. In a lengthy address on 3 August, Prime Minister Mariano Rajoy once again emphasised the severity of the situation and drew the attention of the Spanish people to their responsibilities, while also not ruling out immediate cooperation with the EFSF. By the end of the period under review, no formal application for aid had, however, been filed.

Public finances have gone off the rails not only in the EMU, but also in the UK and the US. The budget debate in the US has become mired in a political impasse. The divisions between Republicans and Democrats are considerable and are ideologically driven. Aware of their inability to work out a policy and fearful that the stalemate could lead to an uncontrolled explosion in debt, the parties passed automatic spending cuts into legislation to reduce the budget deficit over a period of ten years to 3% of GDP. In extremis the retiring Congress decided on New Year's Day to delay automatic spending cuts until 1 March 2013. As public-sector finances threatened to run out of control, many European countries looked to levy higher taxes on their utilities. The most striking example in Southern Europe was Italy, which didn’t waste much time introducing its so-called ‘Robin Hood tax’. In the first half of the year, it became evident in Spain that the utilities companies could not count on full payment of the assets the sector has outstanding with the government (known as the 'tariff deficits'). The 2011 Fukushima disaster in Japan continued to reverberate in 2012. Its consequences have been felt by the nuclear industry in Europe in particular. In Germany, a nuclear tax and gradual closure of nuclear plants have been imposed. There was little or no fuss about nuclear power generation in the US and especially the emerging markets. However, with the emergence of shale gas in the US gas prices are at record low levels and operators are switching to gas for their electricity production.

2.1.8 FUTURE POLICY We remain fairly cautious about the fundamental outlook for the industry. The slowdown in growth in Europe is not such as to cancel out the overcapacity that currently exists in the electricity market straight away. We also fear that the sector will remain the victim in the near term of declining government finances. Current valuations in the United States therefore strike us as a little too generous. For the time being, we prefer a healthy mix of defensive, generally regulated businesses with a stable income flow. On the other hand, businesses with strong growth potential also have a place in the fund. These activities are frequently found in the emerging countries. We view the sector as attractive for longer-term investors. The high dividends have a lot to do with that. The debt reduction carried out by most companies translates into healthy balance sheets. Growth in emerging countries remains strong. A crucial factor is the systematic disappearance of the current overcapacity in Europe, which will result in robust price-setting.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 20.271.755,08 25.072.270,74

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 1.336.643,55 208.965,62 C. Shares and similar instruments a) Shares 20.561.119,88 23.501.352,94 Of which securities lent 775.638,82 291.638,36 F. Derivative financial instruments n) Derivative financial instruments Swap contracts (+/-) 34.200,00 838.110,00

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 2.728,33 4.438,32 b) Tax assets 4.987,00 2.016,00 B. Payables a) Accounts payable (-) -36.643,66 -46.793,15 c) Borrowings (-) -442.804,78 d) Collateral (-) -1.336.643,55 -208.965,62

V. Deposits and cash at bank and in hand A. Demand balances at banks 65.693,17 606.158,83

VI. Accruals and deferrals A. Expense to be carried forward 865,52 B. Accrued income 108.314,80 191.634,83 C. Accrued expense (-) -25.839,66 -25.512,55

TOTAL SHAREHOLDERS' EQUITY 20.271.755,08 25.072.270,74

A. Capital 10.489.736,11 15.239.015,72

B. Income equalization -61.191,41 -79.766,41

C. Profit(Loss) carried forward 9.706.830,66 10.638.582,43

D. Result for the period 136.379,72 -725.561,00

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 1.336.643,55 208.965,62

IV Notional amounts of swap contracts (+) 2.000.000,00 2.100.000,00

IX Financial instruments lent 775.638,82 291.638,36

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 158.874,46 -2.169.340,44 D. Other securities 2.288,44 -245.495,06 F. Derivative financial instruments m) Derivative financial instruments Swap contracts (+/-) -135.870,00 761.140,00 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -334.977,05 223.086,08

II. Investment income and expenses A. Dividends 851.669,06 1.091.983,00 B. Interests a) Securities and money market instruments 6.220,69 25.827,75 b) Cash at bank and in hand and deposits 1.497,14 1.336,51 C. Interest on borrowings (-) -772,21 -4.626,63

III. Other income B. Other 70.358,58

IV. Operating expenses A. Investment transaction and delivery costs (-) -22.275,28 -25.658,06 B. Financial expenses (-) -379,94 -1.616,20 C. Custodian's fee (-) -19.651,03 -24.384,71 D. Manager's fee (-) a) Financial management -322.792,19 -365.675,21 b) Administration and accounting management -22.845,23 -26.015,87 E. Administrative expenses (-) -488,41 -649,09 F. Formation and organisation expenses (-) -2.099,93 -2.798,79 G. Remuneration, social security charges and

pension -5,39

H. Services and sundry goods (-) -4.895,03 -5.312,60 J. Taxes -14.830,51 -20.606,21 K. Other expenses (-) -2.293,26 -7.108,66

Income and expenditure for the period Subtotal II + III + IV 446.063,87 705.048,42

V. Profit (loss) on ordinary activities before tax 136.379,72 -725.561,00

VII. Result for the period 136.379,72 -725.561,00

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 9.782.018,97 9.833.255,02 Profit (loss) brought forward from the previous

financial year 9.706.830,66 10.638.582,43

Profit for the period available for appropriation 136.379,72 -725.561,00 Income on the creation of shares (income on the

cancellation of shares) -61.191,41 -79.766,41

II. (Appropriations to) Deductions from capital -9.710.916,17

III. Profit (loss) to be carried forward 9.706.830,66

IV. (Dividends to be paid out) -71.102,80 -126.424,36

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND UTILITIES

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

AGL ENERGY LIMITED - 11.088,00 AUD 15,380 134.288,87 0,65 0,66

ORIGIN ENERGY LTD - 7.000,00 AUD 11,620 64.052,29 0,31 0,32

SANTOS LTD. - 7.000,00 AUD 11,100 61.185,92 0,30 0,30

Austria

VERBUND AG - 3.000,00 EUR 18,760 56.280,00 0,27 0,28

Brazil

CIA ENERGETICA DE SP - 5.059,00 BRL 19,390 36.337,84 0,18 0,18

ELETROBRAS-CENTR ELETRICAS BRAS S.A. - 16.970,00 BRL 6,330 39.792,59 0,19 0,20

ENERGIAS DO BRASIL SA - 17.100,00 BRL 12,490 79.117,98 0,38 0,39

SABESP-CIA SANEAM. BASICO SAO PAULO - 5.000,00 BRL 86,870 160.900,17 0,78 0,79

TRACTEBEL ENERGIA SA - 10.000,00 BRL 33,350 123.541,40 0,60 0,61

Canada

CANADIAN UTILITIES LTD - 2.904,00 CAD 71,940 159.148,14 0,77 0,79

FORTIS INC - 4.358,00 CAD 34,220 113.606,12 0,55 0,56

TRANSALTA CORP. - 7.283,00 CAD 15,120 83.887,38 0,41 0,41

China

DATANG INTER POWER GENERATION CO LTD - 64.931,00 HKD 2,960 18.808,24 0,09 0,09

HUANENG POWER INTL "H" 150.240,00 HKD 7,170 105.416,62 0,51 0,52

Czech Republic

CEZ A.S. - 8.000,00 CZK 680,000 216.767,61 1,05 1,07

Finland

FORTUM CORPORATION - 21.000,00 EUR 14,150 297.150,00 1,44 1,47

France

ELECTRICITE DE FRANCE - 8.000,00 EUR 13,980 111.840,00 0,54 0,55

GDF SUEZ - 58.000,00 EUR 15,575 903.350,00 4,39 4,46

GDF SUEZ STRIP VVPR 64.180,00 EUR 0,001 64,18

SUEZ ENVIRONNEMENT SA - 30.262,00 EUR 9,109 275.656,56 1,34 1,36

VEOLIA ENVIRONNEMENT (PAR) 17.000,00 EUR 9,155 155.635,00 0,76 0,77

Germany

E.ON SE - 68.000,00 EUR 14,090 958.120,00 4,65 4,73

RWE AG - 8.480,00 EUR 31,240 264.915,20 1,29 1,31

Greece

PUBLIC POWER CORP - 1.629,00 EUR 5,890 9.594,81 0,05 0,05

Hong Kong

CHEUNG KONG INFRASTRUCTURE - 35.697,00 HKD 47,500 165.931,82 0,81 0,82

CHINA RESOURCES POWER HOLDINGS CO - 89.364,00 HKD 19,780 172.978,94 0,84 0,85

CLP - 38.324,00 HKD 64,850 243.212,09 1,18 1,20

GUANGDONG INVESTMENT - 100.000,00 HKD 6,090 59.596,62 0,29 0,29

HONG KONG CHINA GAS - 148.003,00 HKD 21,150 306.326,97 1,49 1,51

HUANENG RENEWABLES CORP LTD - 600.000,00 HKD 1,380 81.027,92 0,39 0,40

POWER ASSETS HOLDINGS LTD - 32.510,00 HKD 66,200 210.610,16 1,02 1,04

India

GAIL INDIA LTD - 10.000,00 INR 356,750 49.387,28 0,24 0,24

INDRAPRASTHA GAS LTD - 15.000,00 INR 248,950 51.695,71 0,25 0,26

RELIANCE ENERGY LTD - 3.643,00 INR 520,550 26.252,63 0,13 0,13

RELIANCE POWER LTD - 23.556,00 INR 93,350 30.441,57 0,15 0,15

Indonesia

PERUSAHAAN GAS NEGARA PT - 400.000,00 IDR 4.600,000 144.812,33 0,70 0,71

Italy

ATLANTIA SPA - 225,00 EUR 13,670 3.075,75 0,02 0,02

E.N.E.L. - 200.993,00 EUR 3,138 630.716,03 3,06 3,11

ENEL GREEN POWER SPA - 110.000,00 EUR 1,411 155.210,00 0,75 0,77

HERA SPA - 100.000,00 EUR 1,224 122.400,00 0,59 0,60

SNAM RETE GAS S.P.A. - 95.000,00 EUR 3,514 333.830,00 1,62 1,65

TERNA RETE ELETTRICA NAZIONALE - 55.000,00 EUR 3,024 166.320,00 0,81 0,82

Japan

CHUBU ELECTRIC POWER - 20.868,00 JPY 1.150,000 210.510,53 1,02 1,04

CHUGOKU ELECTRIC POWER CO INC - 11.289,00 JPY 1.353,000 133.982,61 0,65 0,66

ELECTRIC POWER DEV. - 6.264,00 JPY 2.048,000 112.532,21 0,55 0,56

HOKKAIDO ELECTRIC POWER CO - 5.712,00 JPY 1.046,000 52.410,11 0,25 0,26

HOKURIKU ELECTRIC POWER CO - 5.900,00 JPY 1.022,000 52.892,98 0,26 0,26

INPEX CORP - 25,00 JPY 457.500,000 100.328,95 0,49 0,50

KYUSHU ELECTRIC POWER COMPANY,INC. - 10.437,00 JPY 983,000 89.996,24 0,44 0,44

OKINAWA ELECTRIC POWER CO INC/ - 3.500,00 JPY 2.698,000 82.833,33 0,40 0,41

OSAKA GAS - 52.107,00 JPY 314,000 143.522,79 0,70 0,71

SHIKOKU ELECTRIC POWER CO INC - 2.600,00 JPY 1.375,000 31.359,65 0,15 0,16

TOHO GAS CO LTD - 6.000,00 JPY 463,000 24.368,42 0,12 0,12

TOHOKU ELECTRIC POWER - 10.363,00 JPY 803,000 72.995,52 0,35 0,36

TOKYO GAS CO. LTD - 100.603,00 JPY 395,000 348.580,57 1,69 1,72

Malaysia

PETRONAS GAS BHD - 16.390,00 MYR 19,520 79.354,32 0,39 0,39

TENAGA NASIONAL (BHD) - 60.035,00 MYR 6,940 103.341,74 0,50 0,51

Poland

POLSKA GRUPA ENERGETYCZNA SA - 18.750,00 PLN 18,210 83.679,51 0,41 0,41

Portugal

ENERGIAS DE PORTUGAL SA - 40.000,00 EUR 2,290 91.600,00 0,45 0,45

GALP ENERGIA SGPS SA - 6.000,00 EUR 11,760 70.560,00 0,34 0,35

Russia

GAZPROM ADR NEW 10.000,00 USD 9,460 71.753,64 0,35 0,35

Singapore

HYFLUX LIMITED - 100.000,00 SGD 1,280 79.478,42 0,39 0,39

SOUND GLOBAL LTD - 250.000,00 SGD 0,580 90.034,15 0,44 0,44

South Korea

KOREA ELECTRIC POWER (KEPCO) CORP - 14.996,00 KRW 30.450,000 323.517,09 1,57 1,60

Spain

ACCIONA SA - 1.000,00 EUR 56,210 56.210,00 0,27 0,28

EDP RENOVAVEIS SA - 30.000,00 EUR 3,994 119.820,00 0,58 0,59

ENAGAS - 3.000,00 EUR 16,140 48.420,00 0,24 0,24

IBERDROLA SA - 140.094,00 EUR 4,195 587.694,33 2,85 2,90

RED ELECTRICA DE ESPANA - 5.000,00 EUR 37,300 186.500,00 0,91 0,92

Turkey

AK ENERJI ELEKTRIK URETIM - 194.022,00 TRY 1,640 135.229,95 0,66 0,67

U.K.

BG GROUP PLC - 15.000,00 GBP 10,125 187.245,72 0,91 0,92

CAIRN ENERGY PLC - 30.000,00 GBP 2,648 97.941,07 0,48 0,48

CENTRICA - 200.000,00 GBP 3,336 822.586,61 3,99 4,06

DRAX GROUP PLC - 10.000,00 GBP 5,445 67.131,06 0,33 0,33

NAT. GRID PLC - 71.742,00 GBP 7,030 621.805,28 3,02 3,07

PENNON GROUP PLC - 25.000,00 GBP 6,250 192.639,63 0,94 0,95

SCOTTISH & SOUTHERN ENERGY - 25.000,00 GBP 14,180 437.060,78 2,12 2,16

SEVERN TRENT - 7.500,00 GBP 15,740 145.543,09 0,71 0,72

SOCO INTERNATIONAL PLC - 35.000,00 GBP 3,579 154.438,42 0,75 0,76

UNITED UTILITIES WATER PLC - 25.377,00 GBP 6,735 210.718,89 1,02 1,04

U.S.A.

AES CORP - 34.269,00 USD 10,700 278.123,71 1,35 1,37

ALLIANT ENERGY CORP - 2.771,00 USD 43,910 92.289,60 0,45 0,46

AMEREN CORP. - 1.904,00 USD 30,720 44.365,05 0,22 0,22

AMERICAN ELECTRIC POWER - 13.000,00 USD 42,680 420.843,45 2,04 2,08

AMERICAN WATER WORKS INC. - 3.000,00 USD 37,130 84.488,77 0,41 0,42

AQUA AMERICA INC - 5.000,00 USD 25,420 96.404,73 0,47 0,48

CALPINE CORP - 8.000,00 USD 18,130 110.012,14 0,53 0,54

CENTERPOINT ENERGY INC - 5.811,00 USD 19,250 84.846,59 0,41 0,42

DOMINION RES INC - 9.428,00 USD 51,800 370.426,58 1,80 1,83

DTE ENERGY COMPANY - 4.000,00 USD 60,050 182.190,53 0,89 0,90

DUKE ENERGY HOLDING CORP - 13.264,00 USD 63,800 641.871,36 3,12 3,17

EDISON INTL - 7.103,00 USD 45,190 243.465,24 1,18 1,20

ENERGEN CORPORATION - 5.000,00 USD 45,090 171.002,73 0,83 0,84

ENTERGY CORPORATION - 4.000,00 USD 63,750 193.416,26 0,94 0,95

EQT CORP - 1.000,00 USD 58,980 44.736,04 0,22 0,22

EXELON CORP - 18.650,00 USD 29,740 420.700,09 2,04 2,08

FIRSTENERGY CORP - 9.000,00 USD 41,760 285.072,82 1,38 1,41

NEXTERA ENERGY INC - 7.000,00 USD 69,190 367.361,95 1,78 1,81

NISOURCE INC. - 3.174,00 USD 24,890 59.921,77 0,29 0,30

NORTHEAST UTILITIES - 6.664,00 USD 39,080 197.534,22 0,96 0,97

NRG ENERGY INC - 18.648,00 USD 22,990 325.180,16 1,58 1,60

PEPCO HOLDING INC - 2.115,00 USD 19,610 31.458,70 0,15 0,16

PG & E CORP - 5.016,00 USD 40,180 152.869,30 0,74 0,75

PPL CORP - 14.895,00 USD 28,630 323.455,59 1,57 1,60

PUBLIC SERVICE ENTERPRISE GROUP - 13.000,00 USD 30,600 301.729,37 1,47 1,49

QEP RESOURCES INC - 5.972,00 USD 30,270 137.115,02 0,67 0,68

QUESTAR CORP - 4.000,00 USD 19,760 59.951,46 0,29 0,30

SEMPRA ENERGY - 6.000,00 USD 70,940 322.845,87 1,57 1,59

SOUTHERN COMPANY - 11.464,00 USD 42,810 372.249,58 1,81 1,84

WISCONSIN ENERGY CORP - 2.982,00 USD 36,850 83.348,53 0,41 0,41

XCEL ENERGY INC - 7.796,00 USD 26,710 157.942,32 0,77 0,78

Total shares 20.561.119,88 99,83 101,43

Swaps

U.K.

ROYAL BANK OF SCOTLAND PLC/AUS ELS NAM-EUR UTILITIES 5

2.000.000,00 EUR 1,710 34.200,00 0,17 0,17

Total swaps 34.200,00 0,17 0,17

TOTAL SECURITIES PORTFOLIO 20.595.319,88 100,00 101,60

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 1.336.643,55 EUR 1,000 1.336.643,55 6,60

TOTAL RECEIVED COLLATERAL 1.336.643,55 6,59

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 6.693,53 AUD 1,000 5.270,91 0,03

KBC GROUP CAD 6.853,49 CAD 1,000 5.220,91 0,03

KBC GROUP CZK 1.726,03 CZK 1,000 68,78

KBC GROUP DKK 574,98 DKK 1,000 77,06

KBC GROUP EURO -398.192,63 EUR 1,000 -398.192,63 -1,96

KBC GROUP GBP 4.985,11 GBP 1,000 6.146,11 0,03

KBC GROUP HKD 13.152,10 HKD 1,000 1.287,06 0,01

KBC GROUP JPY -662.574,00 JPY 1,000 -5.812,05 -0,03

KBC GROUP NZD 7.445,21 NZD 1,000 4.658,79 0,02

KBC GROUP PLN 48.279,28 PLN 1,000 11.832,29 0,06

KBC GROUP SEK 659,84 SEK 1,000 76,93

KBC GROUP SGD 5.923,98 SGD 1,000 3.678,35 0,02

KBC GROUP TRY -91.296,64 TRY 1,000 -38.800,10 -0,19

KBC GROUP USD 36.092,49 USD 1,000 27.375,98 0,14

Total demand accounts -377.111,61 -1,86

TOTAL CASH AT BANK AND IN HAND -377.111,61 -1,86

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 2.728,33 EUR 1,000 2.728,33 0,01

KBC GROUP WHT TO BE RECOVERED EUR 4.987,00 EUR 1,000 4.987,00 0,03

Total receivables 7.715,33 0,04

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -1.336.643,55 EUR 1,000 -1.336.643,55 -6,59

KBC GROUP EUR PAYABLE -36.643,66 EUR 1,000 -36.643,66 -0,18

Payables -1.373.287,21 -6,77

TOTAL RECEIVABLES AND PAYABLES -1.365.571,88 -6,74

OTHER

Interest receivable EUR 106.428,42 0,53

Accrued interest EUR 1.886,38 0,01

Expenses payable EUR -25.839,66 -0,13

TOTAL OTHER 82.475,14 0,41

TOTAL NET ASSETS 20.271.755,08 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 0,40 0,44 1,04 1,26 Austria 0,00 0,26 0,53 0,27 Belgium 0,19 0,21 0,29 0,00 Brazil 3,46 2,84 2,31 2,13 Canada 1,26 1,48 1,50 1,73 China 0,69 0,82 0,83 0,60 Czech Republic 1,52 1,39 0,92 1,05 Germany 8,38 6,65 5,72 5,94 Spain 5,06 4,82 4,00 4,85 Finland 2,18 1,63 1,39 1,44 France 10,93 6,73 6,71 7,02 U.K. 11,55 14,22 14,45 14,43 Greece 0,06 0,03 0,01 0,05 Hong Kong 4,76 5,24 5,96 6,02 India 1,32 1,07 1,31 0,77 Indonesia 0,95 0,44 0,50 0,70 Italy 6,27 5,48 5,97 6,85 Japan 6,78 7,65 7,71 7,07 South Korea 1,47 1,05 1,12 1,57 Malaysia 1,40 1,24 0,73 0,89 Poland 0,44 0,36 0,36 0,41 Portugal 0,61 0,00 0,57 0,79 Russia 0,00 0,34 0,31 0,35 Singapore 1,13 0,82 0,73 0,82 Turkey 0,00 0,00 0,40 0,66 U.S.A. 29,19 34,79 34,63 32,33 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 8,46 8,81 11,08 10,75 Consum(cycl) 0,00 0,00 0,20 0,01 Financials 0,51 3,44 0,90 0,17 Technology 0,17 0,18 0,00 0,00 Utilities 90,86 87,57 87,82 89,07 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 0,41 0,45 1,06 1,31 BRL 3,42 2,78 2,31 2,18 CAD 1,27 1,50 1,57 1,79 CZK 1,50 1,36 0,92 1,07 EUR 33,90 29,10 27,05 25,82 GBP 11,22 10,57 13,95 14,58 HKD 5,41 5,97 6,81 6,76 IDR 0,94 0,43 0,50 0,72 INR 1,31 1,04 1,30 0,78 JPY 6,82 7,82 5,83 7,18 KRW 1,46 1,03 1,11 1,60 MYR 1,39 1,21 0,73 0,90 NZD 0,02 0,02 0,02 0,02 PLN 0,44 0,36 0,38 0,47 SGD 1,21 0,91 0,74 0,86 TRY 0,00 0,00 0,41 0,48 USD 29,28 35,45 35,31 33,48 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND UTILITIES (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 3.903.326,08 1.463.282,84 5.366.608,92 Sales 5.004.532,08 3.846.713,08 8.851.245,15 Total 1 8.907.858,16 5.309.995,91 14.217.854,07 Subscriptions 1.357.807,22 543.989,37 1.901.796,59 Redemptions 3.109.800,02 3.549.670,23 6.659.470,25 Total 2 4.467.607,24 4.093.659,60 8.561.266,84 Monthly average of total assets

24.356.588,35 22.411.477,46 23.384.032,90

Turnover rate 18,23 % 5,43 % 24,19 %

1st half of year 2nd half of year YearPurchases 3.903.326,08 1.463.282,84 5.366.608,92 Sales 5.004.532,08 3.846.713,08 8.851.245,15 Total 1 8.907.858,16 5.309.995,91 14.217.854,07 Subscriptions 1.357.807,22 543.989,37 1.901.796,59 Redemptions 3.109.800,02 3.549.670,23 6.659.470,25 Total 2 4.467.607,24 4.093.659,60 8.561.266,84 Monthly average of total assets

23.856.925,20 24.076.332,40 24.351.402,26

Corrected turnover rate 18,61 % 5,05 % 23,23 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 1.336.643,55 1.336.643,55 N/A 31.12.2012

ROYALBAN EUR 2.000.000,00 2.000.000,00 N/A 21.09.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total

2010 - 12 76.289,95 6.586,31 185.177,25 6.071,00 47.640,00 15.552,60 63.192,60

2011 - 12 7.942,88 1.176,00 17.933,63 4.273,00 37.649,25 12.455,60 50.104,85

2012 - 12 3.281,45 366,01 9.893,17 3.441,29 31.037,52 9.380,32 40.417,83

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 38.992.489,80 2.584.294,68 94.316.304,13 2.372.097,87

2011 - 12 4.242.782,36 464.577,13 9.637.050,27 1.658.296,80

2012 - 12 1.768.892,83 142.143,20 5.394.278,17 1.335.622,93

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 32.536.562,21 549,38 409,21

2011 - 12 25.072.270,74 537,08 389,51

2012 - 12 20.271.755,08 538,26 380,10

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0169742898 EUR -0.71% 1.40% -5.41% 0.0532 31/12/1998 0.52%

DIV BE0169740876 EUR -0.73% 1.38% -5.42% 0.053 31/12/1998 0.50%

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

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 28/03/2013: 5.69 EUR net (7.58 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Distribution: 1.694% Capitalization: 1.684% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 227 131 57.86%

CSFBSAS 3,314 1,491 45.00%

DEUTSCHE 1,171 469 40.05%

HSBC 665 302 45.37%

JP MORGAN 237 132 55.55%

MERRILL 106 66 62.50%

MORGAN STANLEY 1,995 929 46.57%

NOMURA 742 325 43.85%

SOCGEN 197 93 47.04%

UBSWDR 2,293 1,209 52.69%

WOOD 248 62 25.00%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 6.542,05 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

FORTIS INC CAD 4.000 34,220 104.273,63

IBERDROLA SA EUR 140.093 4,195 587.690,14

POLSKA GRUPA ENERGETYCZNA SA PLN 18.749 18,210 83.675,05

Total 775.638,82

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 550.000 EUR 588.506,05

OAT FRANCE 2003 4% 25/04/14 EUR 30.000 EUR 32.391,39

FRANCE 2004 1,60% 25/07/2015 EUR 557.000 EUR 715.746,11

Total 1.336.643,55 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund New Shares

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND NEW SHARES

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 1 April 1999 Initial subscription price: 500 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares that have been admitted for listing on a regulated market, where conditions are such as to allow accelerated economic growth in the short or medium term.

RISK CONCENTRATION Recently listed shares.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund New Shares invests in new equity offerings. The NAV of KBC Equity Fund New Share rising from 558.66 EUR on 30th December 2011 to 627.36 EUR on 28th December 2012. The first quarter was heavily influenced by Europe with positive news from Greece as the country secured acceptance of their debt swap offer. The ECB continued to extend liquidity to European banks through the LTRO. In Russia, despite some unrest, Putin won the Russian presidential election. Markets were strong over this period, with global emerging markets outperforming significantly, particularly in January and February. Moving into the second quarter, the situation in Europe worsened. In May, French socialist, Francois Hollande won the French presidential election. Following parliamentary elections in Greece, it was not possible to form a government and a second election was called for mid-June with the uncertainty continuing in the meantime. At this stage, concern spread to the situation in Spain, with growth disappointing further and banks coming under more pressure. Despite initially stating that the country did not need a bailout, by the end of June, Spain had requested assistance from Europe and the IMF. In mid June, the second Greek election took place, with the New Democracy winning narrowly and forming a government. Throughout this period of uncertainty, markets were very weak globally, with most regions reversing most of the gains achieved in Q1. Global emerging markets underperformed their developed peers over this period of weakness. On the final day of the quarter, EU leaders agreed that Europe would support troubled banks directly, without the need for local governments to add to their debt levels, which caused a significant rally in markets. While in the second quarter Equity Fund New Markets reversed a lot of the gains from the first quarter, the fund maintained a positive overall performance for the full first half.

The third quarter had a weak start, with the IMF forecast for 2012 growth in the US being reduced from 2.25% to 2% in the first week of the quarter. Negative headlines continued about the US fiscal cliff as well as the ongoing problems in Euroland. However towards the end of July, markets started to recover and to move upwards. August was a reasonable month for markets, with expectations rising ahead of Bernanke’s speech in Jackson Hole and investors looking to quantitative easing in Europe. Problems continued in Europe, with ongoing concerns and protests against austerity in Greece. September saw a rally in risky assets on the announcement of global policy stimulus. The major event of September occurred on September 13th when the US Fed announced QE3, along with the aim of keeping interest rates low until at least the middle of 2015. The final quarter of 2012 saw a good performance for the Asian region in particular, with the focus returning to domestic issues and in particular the positive news flow from China (discussed further below). Despite concerns on the fiscal cliff ahead at the start of January, markets continued to expect that some sort of resolution would be found on this issue and December saw a strong rise in equity prices. Other positives over the period were the agreement of a bailout for Spanish banks and improved sentiment in Japan following the strong election result. Over the period under review the best performing sectors were Healthcare and IT and the worst performing sectors were Consumer Discretionary and Telecommunication Services. Within the Healthcare sector HCA was a key contributor to performance as the company benefited from a new healthcare law which would give the government the power to tax those without health insurance. HCA deals in areas with a high concentration of uninsured patients making it a huge potential benefactor of this law. Turning to the worst performing sector over the period which was the Consumer Discretionary sector. Within the sector Cho Tai Fook, a Hong Kong jewelry retailer, was the worst performer in the first half of 2012. The company was hit by concerns of slowing economic growth in China together with falling gold prices. However the stock staged a dramatic turnaround in the second half of the year, as luxury sales began to rebound supported by better economic data in China. Looking at the IPO market over 2012, approximately a third of all announced IPOs were pulled during the year. Issuance volumes in the EMEA region were denominated by follow-on offerings in 2012, with the IPO market almost mute in Q2 and Q3, picking up slightly in Q4. IPO issuance activity in Europe picked up in Q4, which was at its highest level since Q2 2011. 12 IPOs larger than $100m priced across the region since the start of October. Looking to the Americas IPO market, an uptick in activity continued throughout the year, having passed APAC as the most active region for the first time since 2009 and issuing more than in 2011. APAC continued to perform well but issuance levels have fallen to the lowest since 2008. Many of the more successful IPOs of 2012 were highly defensive stocks with stable cash flows and attractive dividend yields. In the first quarter on 2012 KBC Equity Fund New Shares participated in two deals, namely Ziggo and DKSH, both of which priced in March. Ziggo, a Dutch cable network operator, raised EUR800m making it the largest European IPO in about a year and the biggest in the Netherlands since 2009. There was a lot of interest in this IPO, which was reported to having been as much as 15 times oversubscribed. Ziggo’s share price is EUR 23.96 at the time of writing, up from an IPO price of EUR18.50. DKSH’s IPO too generated a significant amount of interest. DKSH is a Zurich-based firm which helps companies market and distribute goods in Asia. DKSH’s share price is CHF 69.60 at the time of writing, above its initial listing price of CHF 48.00. In the second quarter of 2012, KBC Equity Fund New Shares participated in the IPO of Haitong Securities, the third largest publicly traded Chinese brokerage. This was to be Hong Kong’s biggest first-time stock sale since Chow Tai Fook Jewellery Group’s listing in December 2011, when it raised approximately USD2bn. Haitong Securities raised USD1.7bn through its listing on the Hong Kong stock exchange. Its share price at the time of writing is HKD 12.76 up from its initial listing price of HKD 10.60. Looking to the US, in mid-May volumes were skewed by the controversial initial public offering of Facebook. The Facebook IPO accounted for almost 50% of the overall issuance in the region over the period. The company raised USD16bn through its listing on the Nasdaq in May. The IPO failed to live up to expectations however, although it has seen some improvement in performance over recent months. Its share price at the time of writing is USD 31.36, down from an initial listing price of USD 38.00. In the fourth quarter of 2012 KBC Equity Fund New Shares participated in one of the largest IPOs of the year, Telefonica Deutschland with an offer size of €1.4bn and a market cap of €6.2bn. Key attractions of this investment were its strong market position, track record of growth and cash flow generation and Telefonica Group’s scale and expertise. The books were cover by the second day of the book-building process. Telefonica Deutschland listing price was EUR 5.60, while today it trades at EUR 5.88. Lastly, at the end of November we also participated in the IPO of Daiwa House REIT Investment Corp. The offering was mush sought after and the REIT priced at the top end of its pricing range. The REIT raised USD 632m

2.1.8 FUTURE POLICY Looking forward, we believe that 2013 will be a year of sluggish and weak growth for the overall global economy. While global growth is expected to be positive it is not anticipated that it will be much more positive when compared to 2012. Developed markets are being highlighted as the point of weakness with only modest expansion expected. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on global growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to continue their decline in 2013. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. Household incomes and corporate and financial sector rebalancing is expected to continue hindering consumption growth in these regions. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only be a short term solution in advance of the debt ceiling debate to follow in February. Inflation is expected to remain contained in developed markets this year allowing monetary policy to focus on growth. In the US, growth is predicted to improve in the second half of the year along with improvement in the housing market and unemployment figures. It would appear that growth in 2013 will emanate from the same source as 2012, with almost 90% of global GDP growth expected to stem from Emerging Markets. Growth is also expected to continue in China where considerable confidence remains, however it is not expected to surpass the growth of 2012. In relation to the BRIC countries, Brazil is expected to exhibit the most improved growth as its economy rebounds as a result of the monetary and fiscal policies introduced this year. The key macro issues facing Emerging Markets in 2013 are the EU sovereign debt crisis, US fiscal policy and Chinese growth. Given the limited number of deals done in 2012, there remains a substantial backlog across all regions, although it is the larger more liquid names which will likely attract most attention, we continue to research the market for new offerings.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 16.421.422,63 16.819.533,53

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 75.196,80 89.019,00 a} Collateral received in the form of bonds 1.082.975,89 C. Shares and similar instruments a) Shares 16.259.019,26 16.183.473,32 Of which securities lent 518.875,15 b) Closed-end undertakings for collective

investment 420.000,00

D. Other securities 7,46 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -625,89 452,76 m) Financial indices Futures and forward contracts (+/-) -288,22 211,83

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 2.951,04 917,19 b) Tax assets 1.565,04 c) Collateral 2.654,73 6.162,38 B. Payables a) Accounts payable (-) -35.766,75 -16.021,30 c) Borrowings (-) -14.628,88 d) Collateral (-) -1.082.975,89

V. Deposits and cash at bank and in hand A. Demand balances at banks 124.097,43 109.147,34

VI. Accruals and deferrals A. Expense to be carried forward 665,65 B. Accrued income 29.511,68 39.770,66 C. Accrued expense (-) -20.698,57 -15.837,80

TOTAL SHAREHOLDERS' EQUITY 16.421.422,63 16.819.533,53

A. Capital 4.886.758,11 7.450.061,14

B. Income equalization -7.526,10 395,13

C. Profit(Loss) carried forward 9.357.251,89 11.139.755,82

D. Result for the period 2.184.938,73 -1.770.678,56

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 1.082.975,89

I.A.B Cash at bank and in hand/deposits 2.654,73 6.162,38

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 108.464,81 192.381,76

IX Financial instruments lent 518.875,15

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -13.822,20 100,80 C. Shares and similar instruments a) Shares 1.231.362,31 -2.627.861,98 b) Closed-end undertakings for collective

investment 9.000,00 16.000,00

D. Other securities -7.673,19 -31.645,45 F. Derivative financial instruments l) Financial indices Futures and forward contracts 15.483,24 211,83 G. Receivables, deposits, cash at bank and in hand

and payables 0,01 -0,01

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -1.078,65 452,76 b) Other foreign exchange positions and

transactions 835.560,68 818.422,99

II. Investment income and expenses A. Dividends 383.409,67 368.155,49 B. Interests a) Securities and money market instruments 31.855,00 11.993,44 b) Cash at bank and in hand and deposits 2.250,59 2.601,63 c) Collateral (+/-) 3,90 C. Interest on borrowings (-) -743,04 -1.900,27

III. Other income B. Other 448,34

IV. Operating expenses A. Investment transaction and delivery costs (-) -14.543,62 -21.028,14 B. Financial expenses (-) -308,32 -1.396,40 C. Custodian's fee (-) -13.680,99 -16.472,60 D. Manager's fee (-) a) Financial management -236.230,13 -248.466,75 b) Administration and accounting management -16.765,94 -18.264,57 E. Administrative expenses (-) -59,34 F. Formation and organisation expenses (-) -1.541,18 -2.011,94 G. Remuneration, social security charges and

pension -3,67

H. Services and sundry goods (-) -3.770,33 -3.892,14 J. Taxes -12.410,54 -13.631,52 K. Other expenses (-) -1.355,30 -2.494,30

Income and expenditure for the period Subtotal II + III + IV 116.106,53 53.640,50

V. Profit (loss) on ordinary activities before tax 2.184.938,73 -1.770.678,56

VII. Result for the period 2.184.938,73 -1.770.678,56

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 11.534.664,52 9.369.472,39 Profit (loss) brought forward from the previous

financial year 9.357.251,89 11.139.755,82

Profit for the period available for appropriation 2.184.938,73 -1.770.678,56 Income on the creation of shares (income on the

cancellation of shares) -7.526,10 395,13

II. (Appropriations to) Deductions from capital -11.515.393,69

III. Profit (loss) to be carried forward 9.357.251,89

IV. (Dividends to be paid out) -19.270,83 -12.220,50

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND NEW SHARES

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 126.000,00 EUR 59,680 75.196,80 0,46 0,46

Total bonds 75.196,80 0,46 0,46

Shares

Exchange-listed shares

Belgium

DEVGEN STRIP-VVPR 33.300,00 EUR 0,000 3,33

EXMAR NV VVPR - STRIP 11.514,00 EUR 0,001 11,51

NYRSTAR - 8.384,00 EUR 4,494 37.677,70 0,23 0,23

NYRSTAR STRIP VVPR 26.894,00 EUR 0,001 26,89

TELENET STRP-VVPR 101.775,00 EUR 0,001 101,78 0,00 0,00

THROMBOGENICS NV - 5.892,00 EUR 42,050 247.758,60 1,52 1,51

THROMBOGENICS NV STRIP-VVPR 150.269,00 EUR 0,002 300,54 0,00 0,00

4ENERGY INVEST SA - 26.929,00 EUR 0,580 15.618,82 0,10 0,10

4ENERGY INVEST SA STRIP 28.035,00 EUR 0,001 28,04

Brazil

BANCO SANTANDER BRASIL SA - 40.000,00 BRL 14,970 221.818,86 1,36 1,35

Canada

AIR CANADA -A- 48.000,00 CAD 1,760 64.355,91 0,39 0,39

MITEL NETWORKS CORP - 33.333,00 USD 3,140 79.388,36 0,49 0,48

Chile

DUOYUAN GLOBAL WATER INC - 1.902,00 USD 0,150 216,40 0,00 0,00

China

CHINA CITIC BANK CHINA CITIC BANK 650,00 HKD 4,600 292,60 0,00 0,00

CHINA CONSTRUCTION BANK - 646.030,00 HKD 6,220 393.230,70 2,41 2,40

CHONGQING RURAL COMMERCIAL BANK - 250.000,00 HKD 4,240 103.731,39 0,64 0,63

HAITONG SECURITIES CO LTD - 272.800,00 HKD 13,300 355.058,86 2,17 2,16

NEW CHINA LIFE INSURANCE CO - 33.000,00 HKD 29,450 95.105,05 0,58 0,58

Denmark

CHRISTIAN HANSEN HOLDING A/S - 18.300,00 DKK 183,700 450.570,97 2,76 2,74

France

EUTELSAT - 8.956,00 EUR 25,100 224.795,60 1,38 1,37

REXEL SA (PAR) 14.113,00 EUR 15,440 217.904,72 1,33 1,33

Germany

HAMBURGER HAFEN UND LOGISTIK - 1.298,00 EUR 17,820 23.130,36 0,14 0,14

SFC ENERGY AG - 9.605,00 EUR 6,050 58.110,25 0,36 0,35

STROER OUT-OF-HOME MEDIA AG - 9.642,00 EUR 6,598 63.617,92 0,39 0,39

TELEFONICA DEUTSCHLAND HOLDING - 122.000,00 EUR 5,819 709.918,00 4,35 4,32

ZHONGDE WASTE TECHNOLOGY - 13.693,00 EUR 1,750 23.962,75 0,15 0,15

Hong Kong

AIA GROUP LTD - 231.000,00 HKD 30,250 683.819,86 4,19 4,16

CHOW TAI FOOK JEWELLERY GROUP - 62.000,00 HKD 12,440 75.477,31 0,46 0,46

CNOOC LTD ADR 1.485,00 USD 220,000 247.800,36 1,52 1,51

Italy

AICON SPA - 33.619,00 EUR 0,122 4.101,52 0,03 0,03

ENEL GREEN POWER SPA - 161.431,00 EUR 1,411 227.779,14 1,40 1,39

GEOX SPA - 14.408,00 EUR 2,174 31.322,99 0,19 0,19

PIAGGIO & C SPA - 72.040,00 EUR 2,030 146.241,20 0,90 0,89

Japan

DAI-ICHI MUTUAL LIFE INSURANCE - 224,00 JPY 119.900,000 235.592,98 1,44 1,44

DAIWA HOUSE REIT INVESTMENT CO - 50,00 JPY 549.000,000 240.789,47 1,47 1,47

INPEX CORP - 123,00 JPY 457.500,000 493.618,42 3,02 3,01

SONY FINANCIAL HOLDINGS INC - 31.900,00 JPY 1.540,000 430.929,82 2,64 2,62

Jersey/The Channel Islands

MEINL INTERNATIONAL POWER LT - 66.053,00 EUR 0,130 8.586,89 0,05 0,05

Luxembourg

EASTPHARMA LTD GDR 52.829,00 USD 1,200 48.084,65 0,29 0,29

TERNIUM SA ADR 16.400,00 USD 23,550 292.946,00 1,79 1,78

Netherlands

SNS REAAL - 13.451,00 EUR 1,030 13.854,53 0,09 0,08

TOMTOM NV - 20.287,00 EUR 3,799 77.070,31 0,47 0,47

X5 RETAIL GROUP NV -GDR- 3.479,00 USD 17,850 47.102,66 0,29 0,29

ZIGGO BV - 12.679,00 EUR 24,760 313.932,04 1,92 1,91

Poland

CYFROWY POLSAT SA - 19.211,00 PLN 16,410 77.262,09 0,47 0,47

POWSZECHNY BANK KREDYTOWY SA - 500,00 PLN 437,000 53.549,98 0,33 0,33

WARSAW STOCK EXHANGE - 5.000,00 PLN 38,870 47.631,30 0,29 0,29

Russia

MAIL.RU GROUP LTD - 4.576,00 USD 34,500 119.745,15 0,73 0,73

South Africa

LIFE HEALTHCARE GROUP HOLDINGS - 200.000,00 ZAR 34,000 607.913,60 3,72 3,70

NAMAKWA DIAMONDS LTD - 424.555,00 GBP 0,046 23.946,97 0,15 0,15

Spain

AMADEUS IT HOLDING SA - 19.737,00 EUR 19,050 375.989,85 2,30 2,29

IBERDROLA SA - 24.789,00 EUR 4,195 103.989,86 0,64 0,63

Sweden

ALPCOT AGRO AB - 16.671,00 SEK 4,800 9.329,91 0,06 0,06

Switzerland

DKSH HOLDING AG LTD 1.804,00 CHF 65,900 98.511,44 0,60 0,60

DUFRY GROUP - 2.882,00 CHF 119,600 285.620,82 1,75 1,74

Turkey

TAV HAVALIMANLARI HOLD - 24.013,00 TRY 9,120 93.072,06 0,57 0,57

U.K.

AZ ELECTRONIC MATERIALS SA - 25.000,00 GBP 3,493 107.662,43 0,66 0,66

BETFAIR GROUP PLC - 15.000,00 GBP 6,865 126.957,22 0,78 0,77

CHARLEMAGNE CAPITAL LTD - 230.267,00 GBP 0,088 24.840,79 0,15 0,15

PROMETHEAN WORLD PLC - 200.000,00 GBP 0,166 40.993,71 0,25 0,25

U.S.A.

ACCURIDE CORP - 237,00 USD 3,210 577,04 0,00 0,00

ADECOAGRO SA - 1.000,00 USD 8,480 6.432,04 0,04 0,04

AMERICAN WATER WORKS INC. - 30.654,00 USD 37,130 863.306,30 5,29 5,26

BUNGE LTD. - 14.400,00 USD 72,690 793.944,17 4,86 4,84

CLOUD PEAK ENERGY INC - 18.428,00 USD 19,330 270.186,01 1,65 1,65

CME GROUP INC - 10.200,00 USD 50,670 392.016,08 2,40 2,39

DOLLAR GENERAL CORPORATION - 20.000,00 USD 44,090 668.841,02 4,10 4,07

DOUGLAS EMMET INC - 9.600,00 USD 23,300 169.660,19 1,04 1,03

DRESSE-RAND GROUP INC - 12.350,00 USD 56,140 525.886,68 3,22 3,20

ENERGY RECOVERY INC - 30.035,00 USD 3,400 77.456,77 0,47 0,47

FACEBOOK INC - 3.720,00 USD 26,630 75.139,26 0,46 0,46

FINANCIAL ENGINES INC - 10.524,00 USD 27,750 221.511,68 1,36 1,35

FORTINET INC - 600,00 USD 21,070 9.588,90 0,06 0,06

GEN.MOTORS - 1.000,00 USD 28,830 21.867,42 0,13 0,13

HCA INC - 13.900,00 USD 30,170 318.084,80 1,95 1,94

LOGMEIN INC - 2.500,00 USD 22,410 42.494,69 0,26 0,26

MEAD JOHNSON NUTRITION CO - 11.500,00 USD 65,890 574.738,32 3,52 3,50

MISTRAS GROUP INC - 23.803,00 USD 24,690 445.764,62 2,73 2,72

QIHOO 360 TECHNOLOHY CO LTD - 3.000,00 USD 29,690 67.559,16 0,41 0,41

REALD INC - 910,00 USD 11,210 7.737,48 0,05 0,05

SEALY CORPORATION - 28.800,00 USD 2,170 47.402,91 0,29 0,29

SUNSTONE HOTEL INVESTORS INC - 23.951,00 USD 10,710 194.565,54 1,19 1,19

VISA INC - 4.834,00 USD 151,580 555.778,00 3,40 3,38

VMWARE INC CLASS A - 4.416,00 USD 94,140 315.323,30 1,93 1,92

VYCON INC - 400.000,00 GBP 0,015 7.397,36 0,05 0,05

WINDSTREAM CORP - 60.977,00 USD 8,280 382.956,28 2,35 2,33

Total shares 16.259.019,26 99,55 99,01

Options and futures

Exchange-listed futures

U.S.A.

STAND & POORS EMINI MAR 13 1,00 USD 1.420,000 53.853,16 0,33 0,33

Suspense accounts (futures)

U.S.A.

STAND & POORS MAR 13 -71.380,00 USD 1,000 -54.141,38 -0,33 -0,33

Total options and futures -288,22 0,00 0,00

Forward contracts EUR -625,89 0,00

TOTAL SECURITIES PORTFOLIO 16.333.301,95 100,00 99,46

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 1.082.975,89 EUR 1,000 1.082.975,89 6,60

TOTAL RECEIVED COLLATERAL 1.082.975,89 6,60

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 4.921,90 AUD 1,000 3.875,82 0,02

KBC GROUP CAD 7.705,99 CAD 1,000 5.870,34 0,04

KBC GROUP CHF 8.315,87 CHF 1,000 6.890,84 0,04

KBC GROUP DKK 27.780,27 DKK 1,000 3.723,40 0,02

KBC GROUP EURO -14.628,88 EUR 1,000 -14.628,88 -0,09

KBC GROUP GBP 4.581,18 GBP 1,000 5.648,11 0,03

KBC GROUP HKD 29.746,93 HKD 1,000 2.911,03 0,02

KBC GROUP JPY 234.314,00 JPY 1,000 2.055,39 0,01

KBC GROUP MAD 52.721,64 MAD 1,000 4.727,00 0,03

KBC GROUP NOK 58.798,97 NOK 1,000 8.013,82 0,05

KBC GROUP PLN 35.012,91 PLN 1,000 8.580,96 0,05

KBC GROUP SEK 27.999,59 SEK 1,000 3.264,57 0,02

KBC GROUP SGD 1.430,28 SGD 1,000 888,10 0,01

KBC GROUP TRY 9.800,33 TRY 1,000 4.165,04 0,03

KBC GROUP USD 56.568,50 USD 1,000 42.906,93 0,26

KBC GROUP ZAR 20.727,01 ZAR 1,000 1.852,98 0,01

Total demand accounts 90.745,45 0,55

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 6.958,43 EUR 1,000 6.958,43 0,04

KBC GROUP USD FUT REK 15.510,54 USD 1,000 11.764,67 0,07

Total managed futures accounts 18.723,10 0,11

TOTAL CASH AT BANK AND IN HAND 109.468,55 0,67

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 2.951,04 EUR 1,000 2.951,04 0,02

Netherlands

KBC CLEARING NV DEKKING USD 3.500,00 USD 1,000 2.654,73 0,02

Total receivables 5.605,77 0,03

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -1.082.975,89 EUR 1,000 -1.082.975,89 -6,60

KBC GROUP EUR PAYABLE -35.766,75 EUR 1,000 -35.766,75 -0,22

Payables -1.118.742,64 -6,81

TOTAL RECEIVABLES AND PAYABLES -1.113.136,87 -6,78

OTHER

Interest receivable EUR 28.794,39 0,18

Accrued interest EUR 717,29 0,01

Expenses payable EUR -20.698,57 -0,13

TOTAL OTHER 8.813,11 0,05

TOTAL NET ASSETS 16.421.422,63 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium 7,26 5,31 2,41 1,84 Brazil 1,74 1,48 1,41 1,36 Canada 4,03 0,71 0,90 0,88 Switzerland 1,74 1,23 2,12 2,35 Chile 0,03 0,03 0,00 0,00 China 5,98 5,61 7,92 5,80 Germany 3,12 1,76 1,33 5,38 Denmark 0,44 0,50 0,60 2,76 Spain 2,86 2,20 2,48 2,94 France 3,82 2,73 2,40 2,71 U.K. 2,19 2,29 1,82 1,84 Hong Kong 3,99 6,53 5,98 6,17 Ireland 0,00 0,53 0,47 0,46 Italy 1,97 2,55 2,19 2,51 Jersey/The Channel Islands 0,06 0,06 0,05 0,05 Japan 5,18 7,01 7,03 8,58 Luxembourg 2,14 1,61 1,63 2,09 Netherlands 1,02 0,75 4,17 2,48 Norway 3,24 3,10 1,39 0,00 Poland 1,03 0,79 0,89 1,09 Russia 2,66 1,08 1,09 1,02 Sweden 0,00 0,00 0,08 0,06 Turkey 0,45 0,47 0,60 0,57 U.S.A. 42,11 49,07 47,38 43,19 South Africa 2,94 2,60 3,66 3,87 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 28,65 21,92 18,25 16,76 Consum(cycl) 10,70 9,95 10,60 6,27 Cons.goods 16,74 20,26 20,13 18,24 Pharma 5,96 8,64 8,67 7,48 Financials 20,68 17,00 19,44 20,49 Technology 7,89 7,12 9,16 10,61 Telecomm. 3,59 7,09 7,71 5,64 Utilities 3,94 6,25 3,74 6,40 Real est. 1,85 1,77 2,30 3,76 Various 0,00 0,00 0,00 4,35 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 0,05 0,06 0,02 0,02 BRL 1,73 1,47 1,41 1,35 CAD 3,54 0,25 0,25 0,43 CHF 1,75 1,25 2,13 2,38 DKK 0,47 0,54 0,64 2,77 EUR 19,47 15,22 14,86 17,70 GBP 3,59 2,59 2,01 2,06 HKD 7,27 9,61 10,98 10,42 JPY 5,18 7,04 7,03 8,55 MAD 0,02 0,03 0,03 0,03 NOK 3,28 3,12 1,40 0,05 PLN 1,06 0,85 0,90 1,14 SEK 0,02 0,02 0,10 0,08 SGD 0,00 0,01 0,01 0,01 TRY 0,48 0,51 0,65 0,59 USD 50,15 55,01 54,00 48,70 ZAR 1,94 2,42 3,58 3,72 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND NEW SHARES (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 1.533.618,80 2.920.390,46 4.454.009,26 Sales 2.766.141,99 4.128.485,81 6.894.627,80 Total 1 4.299.760,79 7.048.876,27 11.348.637,06 Subscriptions 160.043,22 131.129,52 291.172,74 Redemptions 1.417.928,21 1.437.134,96 2.855.063,17 Total 2 1.577.971,43 1.568.264,48 3.146.235,91 Monthly average of total assets

17.416.279,08 16.767.047,49 17.091.663,28

Turnover rate 15,63 % 32,69 % 47,99 %

1st half of year 2nd half of year YearPurchases 1.533.618,80 2.920.390,46 4.454.009,26 Sales 2.766.141,99 4.128.485,81 6.894.627,80 Total 1 4.299.760,79 7.048.876,27 11.348.637,06 Subscriptions 160.043,22 131.129,52 291.172,74 Redemptions 1.417.928,21 1.437.134,96 2.855.063,17 Total 2 1.577.971,43 1.568.264,48 3.146.235,91 Monthly average of total assets

17.161.345,26 16.652.826,69 16.966.389,80

Corrected turnover rate 15,86 % 32,91 % 48,34 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR EUR 1.082.975,89 1.082.975,89 N/A 31.12.2012

KBCCLEAR DEKKING USD USD 3.500,00 2.654,73 N/A 31.12.2012

STPOORS EMINI MAR 13 USD 71.000,01 53.853,16 50,00 18.12.2012

KBC AK-VK USD-EUR 130313-121214 1.304299

USD 72.000,00 54.611,65 N/A 14.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total

2010 - 12 1.568,56 60,00 6.283,52 1.244,50 30.110,15 6.586,27 36.696,42

2011 - 12 639,06 0,00 5.544,23 1.031,50 25.204,97 5.554,77 30.759,74

2012 - 12 375,83 117,00 3.799,11 1.010,00 21.781,69 4.661,77 26.443,46

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 845.272,87 27.781,37 3.367.081,07 580.121,45

2011 - 12 373.983,60 0,00 3.220.983,78 529.864,11

2012 - 12 228.932,42 63.027,15 2.320.228,51 543.147,59

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 21.967.076,38 611,51 539,65

2011 - 12 16.819.533,53 558,66 493,01

2012 - 12 16.421.422,63 634,56 557,63

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0170533070 EUR 12.30% 9.03% -3.55% 0.0687 01/04/1999 1.66%

DIV BE0170532064 EUR 12.29% 9.02% -3.55% 0.0686 01/04/1999 1.66%

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

The bar chart shows the performance for full financial years. 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 incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 28/03/2013: 3.10 EUR net (4.13 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Distribution: 1.695% Capitalization: 1.691% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 261 163 62.50%

CSFBSAS 2,863 1,531 53.47%

DEUTSCHE 27 12 44.45%

JP MORGAN 643 357 55.56%

MERRILL 127 79 62.50%

MORGAN STANLEY 962 528 54.93%

NOMURA 283 103 36.36%

UBSWDR 440 220 50.00%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The S&P 500 is an equity index computed by Standard & Poor’s that is made up of 500 shares. The dividend is not reinvested. The S&P 500 serves primarily as a continuous indicator of market trends on the US stock markets. The value of the S&P 500 index is calculated on the basis of the market value of the shares of 500 companies at a given point in time, compared to the market value of the shares of 500 similar companies during the reference period from 1941 to 1943. The index is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Standard & Poor’s has all proprietary rights with repect to the index. In no way Standard & Poor’s endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Standard & Poor’s disclaims any liability for the issue and offering of the shares of this undertaking for collective investment The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 14.279,11 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

DKSH HOLDING LTD CHF 117 65,900 6.389,05

HAITONG SECURITIES CO -H- HKD 272.799 13,300 355.057,56

IBERDROLA SA EUR 24.788 4,195 103.985,66

POWSZECHNY ZAKLAD UBEZPIECZEN SA PLN 499 437,000 53.442,88

Total 518.875,15

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 550.000 EUR 588.506,05

GERMANY 12/13 0,00% 28/08 EUR 375.000 EUR 375.030,00

FRANCE - 04/55 4.00 % 25/04 EUR 81.000 EUR 99.270,60

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 18.000 EUR 20.169,23

Total 1.082.975,88 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Fallen Angels

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND FALLEN ANGELS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Launch date: 30 April 1999 Initial subscription price: 500 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares whose price has fallen significantly compared with their local market but for which the outlook is positive again. The sub-fund focuses on the higher growth potential of the companies concerned, taking account of their undervaluation compared with the local market.

LENDING FINANCIAL INSTRUMENTS: The sub-fund may lend financial instruments within the limits set by law and regulations. This lending does not affect the sub-fund’s risk profile since: - it takes place within the framework of a securities lending system managed by a principal. In

addition, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to which title of the loaned securities is transferred. The choice of principal is subject to strict selection criteria. The return of securities similar to the securities that have been lent is guaranteed by the principal.

- through a margin management system, the sub-fund is always guaranteed financial security, the actual value of which always exceeds the actual value of the securities that have been lent, in case the principal does not return similar securities.

The return of securities similar to the securities that have been lent can be requested at any time, which means that the lending of securities does not affect the management of the sub-fund's assets. By lending securities, the sub-fund can generate an additional return. The principal pays a fee to the management company. After deducting the fee for the margin management and clearing services of KBC Bank, most of this fee is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements. More information is provided on the terms and conditions governing securities lending in the annual or half-yearly report for the sub-fund.

VOLATILITY OF THE NET ASSET VALUE: The volatility of the net asset value may be high due to the composition of the portfolio.

GENERAL STRATEGY FOR HEDGING THE EXCHANGE RATE RISK: In order to protect its assets against exchange rate fluctuations and within the limitations laid down in the articles of association, the sub-fund may perform transactions relating to the sale of forward currency contracts, as well as the sale of call options and the purchase of put options on currencies. The transactions in question may relate solely to contracts traded on a regulated market that operates regularly, is recognised and 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, the sub-fund may also sell currencies forward or exchange them in private transactions with prime financial institutions specialising in such transactions. The hedging objective of the aforementioned transactions suggests that there is a direct link between these transactions and the assets to be hedged, which implies that the transactions carried out in a particular currency may in principle not exceed, in terms of volume, either the valuation value of all the assets in the same currency or the holding period of those assets.

SOCIAL, ETHICAL AND ENVIRONMENTAL ASPECTS:

No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive.

A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR The fund invests in stocks that have for various reasons underperformed their sector or local market index during a relatively long period. Academic research shows that stocks that underperform over a relatively long period become cheap as a result and tend to outperform in the subsequent period of time. History shows that market participants tend to extrapolate the problems of the past on to the future, thereby ignoring the strengths of underperforming and cheap stocks. A hint of good news is sometimes sufficient to again bring these positive elements under the spotlight and can inspire a recovery in the stock price. Moreover, investors tend to lose interest in underperforming stocks and focus rather on the top names of the moment. As a result of this lack of interest, the pricing of these stocks is no longer efficient and this subsequently creates opportunities for bargain hunters. The period of outperformance tends to be surprisingly long which implies that KBC Equity Fund Fallen Angels is characterised as a long-term investor, as opposed to a trading fund. Looking back over the past year, 2012 was equally as tumultuous as the previous year. In January equity markets moved considerably higher. The Fed’s announcement that rates will remain low until at least late 2014, record results from Apple and positive US GDP growth numbers were the key support factors for equity markets. Emerging equity markets led the pack early on. After a short pause in early February, equities climbed higher again in the second half of the month. Regionally, the euro area markets strongly outperformed. Positive macroeconomic developments, especially in the US, the successful Greek debt restructuring and the liquidity injection by central banks encouraged a modest increase in equity markets in March. Towards the end of the month investors’ optimism was tempered by worries over the risks for a hard landing in China and the rise in government bond yields throughout the world.

At the start of the second quarter macro data was not supportive for equity markets. The reporting season for the first quarter was a positive factor with some 75% of US companies (S&P 500) beating expectations. In Europe, there were less positive surprises and, disappointingly earnings were down year-on-year. Euro area equity markets strongly underperformed other regions once again, while Emerging market equities also continued to underperform their Developed Market counterparts. The downward trend on stock markets intensified in May. Uncertainty over Greece and Spain continued to weigh on investors' mood in June. The announcement of plans to enable the European Stability Mechanism to directly capitalise banks rather than direct funds through the sovereign led to sharp gains in the final trading days of the month. European stock markets benefited most from the late rally, strongly outperforming other regions. During July, economic data remained weak for most regions. At the start of July, the IMF reduced its outlook on US economic growth for 2012 and 2013 due to a slowdown in consumer spending and economic demand. Despite the weak economic releases during the month, the ECB stepped in at month end to awaken global markets. August marked a month of improvement in equities after reassurances from both the ECB and the Fed. Greece’s credit rating outlook was lowered further by S&P from stable to negative as the uncertainty over its ability to meet bailout conditions continued. In the US, unemployment figures continued to worsen and the Fed’s chief Bernanke was forced to address the unemployment problem at Jackson Hole. Overall data releases from China were weak with declining exports, industrial production and manufacturing figures. Earnings revisions for MSCI EM were revised downwards for 2012 and 2013. The salient moment for the fourth quarter was undoubtedly the re-election of President Obama and the last minute knife edge decision for the fiscal cliff. The re-election of President Obama helped to remove some of the policy uncertainty for the US. A strong rally in China in December allowed the Shanghai composite to erase some of its earlier losses of this year. The first quarter of the year was an upbeat period for KBC Equity Fund Fallen Angels, with the fund ending the quarter in positive terms when compared to the broad index of global stocks. The fund also outperformed the broad world market during this period. The Banking and Materials industry groups contributed positively to the performance of the fund during the first quarter with Regions Financial Corp, Royal Bank of Scotland and Siam City Cement all among the top performers over the period. In the Materials group, Siam City Cement was the stalwart name in the first quarter after their share price rose the most in four years. There was widespread speculation as to whether the Bangkok flood-related reconstruction would boost demand and prices for the company. Siam City which is Thailand’s second largest cement maker was set to enjoy a growth in their cement sales as the Government set about rebuilding the damaged infrastructure from the floods which engulfed Bangkok in late 2011. In a similar pattern to 2011, the second quarter was more volatile with the fund performing in negative terms on an absolute basis; it also underperformed the index over the period. The banking sector continued with its strong performance, followed closely by the Food & Beverage, Pharmaceuticals and Materials sectors. The top performing names over the first half of the year were Grupo Modelo, Regions Financial Corp and Sunoco Inc. The technology sector contributed negatively to performance over the period, with names such as Sandisk, Lexmark and Dell providing disappointing returns for the second quarter. Technology manufacturer Sandisk Corp saw its shares plummet during April after releasing their second quarter sales forecast which was lower than analyst’s expected. The first quarter gains for the fund were almost wiped out during the second quarter making it a volatile period for KBC Equity Fund Fallen Angels with the fund slightly underperforming the broad index over the first two quarters. The performance of KBC Equity Fund Fallen Angels improved during the third quarter yet underperformed the index over the period. The majority of sectors found themselves in positive territory over the quarter. Performance of the Information Technology and Utilities groups lagged the most for the fund with all other industry groups in positive territory. The top performing industry group was Financials followed closely by Energy. Top names in the quarter included Central Japan Railway Co, Perisimmon and Siam City Cement. The laggard names came in the form of Dell, H Lundbeck and Lexmark International. Shares in printer maker Lexmark International plummeted the most in a year early on in July after they cut their second quarter outlook due to weaker demand in Europe. A drop off in corporate spending affected the company badly as workers have favoured the use of mobile devices.

The performance of KBC Equity Fund Fallen Angels retained its positive trend throughout the fourth quarter, and the fund managed to slightly outperform the index over this period. Performances were mixed on an industry group level, with Financials once again attaining the best returns while Telecommunications and Utilities were mildly negative. In terms of positive names, Lloyds Banking Group was a stellar performer for the fund, with the restructuring of the bank well on target. As a result of Lloyd’s impressive results, they were upgraded by many analysts throughout the year. On a full year basis the Financials and Industrials sectors were the two strongest in terms of performance. The only negative sector in the fund was Information Technology. In keeping with the positive start to the year, performance of KBC Equity Fund Fallen Angels was impressive over the full year period, with the fund ending the year 2012 in positive territory in absolute , however the fund slightly underperformed the broad world market.

2.1.8 FUTURE POLICY Looking forward, we believe that 2013 will be a year of sluggish and weak growth for the overall global economy. While global growth is expected to be positive it is not anticipated that it will be much more positive when compared to 2012. Developed markets are being highlighted as the point of weakness with only modest expansion expected. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on global growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to continue their decline in 2013. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. Household incomes and corporate and financial sector rebalancing is expected to continue hindering consumption growth in these regions. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only a short term solution in advance of the debt ceiling debate to follow in February. Inflation is expected to remain contained in developed markets this year allowing monetary policy to focus on growth. In the US, growth is predicted to improve in the second half of the year along with improvement in the housing market and unemployment figures. It would appear that growth in 2013 will emanate from the same source as 2012, with almost 90% of global GDP growth expected to originate from Emerging Markets. Growth is also expected to continue in China where considerable confidence remains, however it is not expected to surpass the growth of 2012. In relation to the BRIC countries, Brazil is expected to exhibit the most improved growth as its economy rebounds as a result of the monetary and fiscal policies introduced this year. The key macro issues facing Emerging Markets in 2013 are the EU sovereign debt crisis, US fiscal policy and Chinese growth. In line with the theme, KBC Equity Fund Fallen Angels will continue to invest in a global portfolio of shares that have in the past underperformed the market, but that demonstrate the potential to outperform in the future. We will continue to ensure that the portfolio is diversified, with sector and regional allocation in line with the MSCI World All Countries Index.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 12.048.727,67 12.217.506,57

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 772.900,73 228.067,93 C. Shares and similar instruments a) Shares 12.013.869,32 12.179.970,38 Of which securities lent 321.379,70 246.884,84 D. Other securities 1.495,03

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 217.268,46 243,20 b) Tax assets 525,30 525,30 B. Payables a) Accounts payable (-) -40.200,49 -15.866,95 c) Borrowings (-) -212.855,73 -8.203,99 d) Collateral (-) -772.900,73 -228.067,93

V. Deposits and cash at bank and in hand A. Demand balances at banks 66.245,24 53.554,37

VI. Accruals and deferrals A. Expense to be carried forward 468,36 B. Accrued income 17.997,71 18.896,60 C. Accrued expense (-) -15.617,17 -12.080,70

TOTAL SHAREHOLDERS' EQUITY 12.048.727,67 12.217.506,57

A. Capital 4.060.829,92 5.767.370,65

B. Income equalization -14.824,61 -4.511,57

C. Profit(Loss) carried forward 6.441.927,02 7.299.430,85

D. Result for the period 1.560.795,34 -844.783,36

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 772.900,73 228.067,93

IX Financial instruments lent 321.379,70 246.884,84

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 1.543.339,58 -1.106.750,95 D. Other securities 7.341,06 41,68 E. Open-end undertakings for collective investment -7.521,81 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -146.639,74 219.312,95

II. Investment income and expenses A. Dividends 375.851,64 286.459,59 B. Interests a) Securities and money market instruments 4.175,77 6.012,21 b) Cash at bank and in hand and deposits 1.233,70 2.484,18 C. Interest on borrowings (-) -868,37 -1.522,42

III. Other income B. Other 319,24

IV. Operating expenses A. Investment transaction and delivery costs (-) -13.329,71 -19.176,11 B. Financial expenses (-) -177,46 -1.335,31 C. Custodian's fee (-) -10.174,70 -11.609,43 D. Manager's fee (-) a) Financial management -172.823,07 -181.443,82 b) Administration and accounting management -12.249,57 -13.010,98 E. Administrative expenses (-) -35,20 -28,04 F. Formation and organisation expenses (-) -1.159,78 -1.508,07 G. Remuneration, social security charges and

pension -2,70

H. Services and sundry goods (-) -3.032,22 -2.645,73 J. Taxes -9.596,56 -10.364,38 K. Other expenses (-) -1.060,03 -2.493,46

Income and expenditure for the period Subtotal II + III + IV 156.754,44 50.134,77

V. Profit (loss) on ordinary activities before tax 1.560.795,34 -844.783,36

VII. Result for the period 1.560.795,34 -844.783,36

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 7.987.897,75 6.450.135,92 Profit (loss) brought forward from the previous

financial year 6.441.927,02 7.299.430,85

Profit for the period available for appropriation 1.560.795,34 -844.783,36 Income on the creation of shares (income on the

cancellation of shares) -14.824,61 -4.511,57

II. (Appropriations to) Deductions from capital -7.970.389,43

III. Profit (loss) to be carried forward 6.441.927,02

IV. (Dividends to be paid out) -17.508,32 -8.208,90

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND FALLEN ANGELS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

GPT GROUP - 25.055,00 AUD 3,680 72.606,03 0,60 0,60

MACQUARIE GROUP LTD - 1.980,00 AUD 35,490 55.335,22 0,46 0,46

SUNCORP GROUP LTD - 11.720,00 AUD 10,170 93.859,67 0,78 0,78

TELSTRA CORP - 49.740,00 AUD 4,370 171.166,08 1,43 1,42

Austria

VOESTALPINE AG - 1.538,00 EUR 27,660 42.541,08 0,35 0,35

Bermuda

AXIS CAPITAL HOLDINGS LTD - 1.569,00 USD 34,640 41.224,33 0,34 0,34

Brazil

SABESP-CIA SANEAM. BASICO SAO PAULO - 1.700,00 BRL 86,870 54.706,06 0,46 0,45

TELEF BRASIL PREF 4.926,00 BRL 49,000 89.414,34 0,74 0,74

Canada

CANADIAN OIL SANDS LTD - 4.326,00 CAD 20,170 66.470,19 0,55 0,55

GREAT-WEST LIFECO INC. - 6.270,00 CAD 24,350 116.305,71 0,97 0,97

LOBLAW COMPANIES LTD - 5.027,00 CAD 41,930 160.571,43 1,34 1,33

PENN WEST ENERGY TRUST - 4.276,00 CAD 10,800 35.180,01 0,29 0,29

SEARS CANADA INC - 291,00 CAD 10,050 2.227,89 0,02 0,02

SHAW COMMUNICATIONS INC "B" 2.655,00 CAD 22,840 46.195,02 0,38 0,38

China

BANK OF CHINA LTD - H - 392.000,00 HKD 3,460 132.729,21 1,11 1,10

BANK OF COMMUNICATIONS LTD - 150.000,00 HKD 5,840 85.725,19 0,71 0,71

COUNTRY GARDEN HOLDINGS COMPANY - 53.504,00 HKD 4,060 21.257,72 0,18 0,18

GEELY AUTOMOBILE HOLDINGS LTD - 110.000,00 HKD 3,670 39.506,00 0,33 0,33

IND & COMM BK OF CHINA - 83.000,00 HKD 5,500 44.673,00 0,37 0,37

Czech Republic

CEZ A.S. - 1.902,00 CZK 680,000 51.536,50 0,43 0,43

Finland

NESTE OIL OYJ - 6.271,00 EUR 9,770 61.267,67 0,51 0,51

STORA ENSO OYJ "R" 7.178,00 EUR 5,245 37.648,61 0,31 0,31

France

ATOS SA - 867,00 EUR 52,860 45.829,62 0,38 0,38

AXA - 4.687,00 EUR 13,350 62.571,45 0,52 0,52

COMPAGNIE GENERALE DE GEOPHYSIQUE SA - 3.522,00 EUR 22,590 79.561,98 0,66 0,66

IMERYS (PAR) 1.071,00 EUR 48,190 51.611,49 0,43 0,43

RENAULT (PAR) 969,00 EUR 40,685 39.423,77 0,33 0,33

SANOFI - 3.174,00 EUR 71,390 226.591,86 1,89 1,88

Germany

FRAPORT AG - 936,00 EUR 43,935 41.123,16 0,34 0,34

Hong Kong

SINO LAND CO. - 44.000,00 HKD 13,940 60.023,29 0,50 0,50

SUN HUNG KAI PROPS - 10.000,00 HKD 116,200 113.713,09 0,95 0,94

Ireland

KERRY GROUP PLC - 1.940,00 EUR 40,055 77.706,70 0,65 0,65

Israel

BANK LEUMI LE-ISRAEL BM - 13.567,00 ILS 12,670 34.944,17 0,29 0,29

Italy

E.N.E.L. - 13.007,00 EUR 3,138 40.815,97 0,34 0,34

ENI - 8.265,00 EUR 18,340 151.580,10 1,26 1,26

Japan

AJINOMOTO - 5.000,00 JPY 1.143,000 50.131,58 0,42 0,42

DAIWA HOUSE - 4.000,00 JPY 1.479,000 51.894,74 0,43 0,43

HITACHI - 17.000,00 JPY 504,000 75.157,89 0,63 0,62

INPEX CORP - 16,00 JPY 457.500,000 64.210,53 0,53 0,53

ITOCHU TECHNO-SCIENCE CORP. - 800,00 JPY 3.555,000 24.947,37 0,21 0,21

MITSUBISHI MOTOR - 42.000,00 JPY 89,000 32.789,47 0,27 0,27

MITSUBISHI UFJ FINANCIAL GROUP - 17.400,00 JPY 461,000 70.363,16 0,59 0,58

NISSAN MOTOR - 13.400,00 JPY 811,000 95.328,07 0,79 0,79

SEVEN & I HOLDINGS CO LTD - 4.600,00 JPY 2.437,000 98.335,09 0,82 0,82

SUMITOMO MITSUI FINANCIAL GROUP INC - 2.300,00 JPY 3.115,000 62.846,49 0,52 0,52

TAKEDA PHARMACEUTICAL CO LTD - 4.400,00 JPY 3.855,000 148.789,47 1,24 1,24

TOKYO GAS CO. LTD - 15.000,00 JPY 395,000 51.973,68 0,43 0,43

TONENGENERAL SEKIYU KK - 10.000,00 JPY 746,000 65.438,60 0,55 0,54

TOSHIBA CORP - 14.000,00 JPY 337,000 41.385,96 0,34 0,34

YOKOGAWA ELECTRIC - 3.400,00 JPY 941,000 28.064,91 0,23 0,23

Jersey/The Channel Islands

WOLSELEY PLC - 1.813,00 GBP 29,000 64.821,85 0,54 0,54

Malaysia

ALLIANCE FINANCIAL GROUP BHD - 78.007,00 MYR 4,400 85.133,02 0,71 0,71

IGB REAL ESTATE INVESTMENT TRUST - 3.094,00 MYR 1,330 1.020,67 0,01 0,01

TELEKOM MALAYSIA SYARIKAT - 32.000,00 MYR 6,040 47.940,07 0,40 0,40

Mexico

GRUPO MODELA "C" 17.600,00 MXN 116,020 119.267,32 0,99 0,99

Netherlands

ING GROEP NV - 11.770,00 EUR 7,061 83.107,97 0,69 0,69

QIAGEN NV - 4.575,00 USD 18,150 62.982,59 0,52 0,52

New Zealand

TELECOM CORP NEW ZEAL NZL REGD 34.455,00 NZD 2,275 49.048,95 0,41 0,41

Norway

ORKLA ASA "A" 8.541,00 NOK 48,500 56.457,30 0,47 0,47

STATOILHYDRO ASA - 22.904,00 NOK 27,880 87.030,95 0,72 0,72

Philippines

AYALA LAND - 83.000,00 PHP 26,450 40.551,90 0,34 0,34

BANCO DE ORO UNIBANK INC - 69.108,00 PHP 72,800 92.932,39 0,77 0,77

FILINVEST LAND INC - 4.000,00 PHP 1,490 110,09 0,00 0,00

Poland

KGHM POLSKA MIEDZ SA - 588,00 PLN 190,000 27.380,34 0,23 0,23

POLISH OIL & GAS - 65.074,00 PLN 5,210 83.090,84 0,69 0,69

POLSKI KONCERN NAFTOWY ORLEN SA - 3.293,00 PLN 49,500 39.948,90 0,33 0,33

Singapore

FLEXTRONICS INTL LTD - 14.187,00 USD 6,210 66.824,39 0,56 0,56

South Africa

BIDVEST GROUP LTD - 3.833,00 ZAR 215,490 73.841,22 0,62 0,61

FIRSTRAND LTD. - 42.676,00 ZAR 31,000 118.271,02 0,98 0,98

South Korea

KOREA EXCHANGE BANK - 8.240,00 KRW 7.620,000 44.485,32 0,37 0,37

SK TELECOM CO LTD - 479,00 KRW 152.500,000 51.753,52 0,43 0,43

Spain

GAS NATURAL SDG - 3.324,00 EUR 13,580 45.139,92 0,38 0,38

REPSOL INTL FINANCE - 3.236,00 EUR 15,335 49.624,06 0,41 0,41

ZARDOYA OTIS S.A. (MAD) 3.237,00 EUR 10,800 34.959,60 0,29 0,29

Sweden

SKANSKA AB "B" 6.634,00 SEK 106,200 82.143,78 0,68 0,68

SWEDBANK - 8.372,00 SEK 127,000 123.967,45 1,03 1,03

Switzerland

HOLCIM LTD (NOM) 1.459,00 CHF 66,900 80.880,92 0,67 0,67

LINDT & SPRUENGLI AG - 4,00 CHF 34.515,000 114.401,72 0,95 0,95

PENTAIR LTD - REGISTERED - 585,00 USD 49,150 21.808,82 0,18 0,18

PHONAK HOLDING - 332,00 CHF 101,400 27.895,92 0,23 0,23

SWISS LIFE HOLDING - 460,00 CHF 121,400 46.274,44 0,39 0,38

Taiwan

ADVANTECH CO LTD - 700,00 TWD 122,500 2.239,78 0,02 0,02

MITAC INTERNATIONAL - 130.439,00 TWD 10,400 35.433,34 0,30 0,29

TUNG HO STEEL ENTERPRISE CORP - 82.000,00 TWD 29,700 63.612,38 0,53 0,53

Thailand

ADVANCED INFO SERVICE PUBLIC CO LTD LOCAL 14.100,00 THB 209,000 73.069,86 0,61 0,61

Turkey

KOC HOLDING A.S. - 11.965,00 TRY 9,260 47.087,08 0,39 0,39

U.K.

ASSOCIATED BRITISH FOODS PLC - 5.616,00 GBP 15,640 108.290,27 0,90 0,90

AVIVA PLC - 12.754,00 GBP 3,730 58.651,73 0,49 0,49

BT GROUP PLC - 44.248,00 GBP 2,311 126.072,16 1,05 1,05

KINGFISHER PLC - 17.710,00 GBP 2,841 62.031,94 0,52 0,52

LADBROKES PLC - 10.719,00 GBP 1,983 26.206,11 0,22 0,22

LLOYDS BANKING GROUP PLC - 129.731,00 GBP 0,479 76.637,42 0,64 0,64

LONMIN PLC - 8.376,00 GBP 2,842 29.348,53 0,24 0,24

PERSIMMON - 7.741,00 GBP 8,000 76.350,63 0,64 0,63

RECKITT BENCKISER PLC - 2.781,00 GBP 38,790 132.998,38 1,11 1,10

ROYAL BANK OF SCOTLAND GROUP PLC - 14.718,00 GBP 3,245 58.882,89 0,49 0,49

SAINSBURY PLC - 19.036,00 GBP 3,451 80.992,77 0,67 0,67

TRAVIS PERINKS PLC - 3.294,00 GBP 10,880 44.185,33 0,37 0,37

UNITED UTILITIES WATER PLC - 6.258,00 GBP 6,735 51.963,54 0,43 0,43

U.S.A.

ADOBE SYSTEMS - 4.864,00 USD 37,680 139.013,59 1,16 1,15

ADT CORP / THE - 1.220,00 USD 46,490 43.020,18 0,36 0,36

AGCO CORP - 1.513,00 USD 49,120 56.370,27 0,47 0,47

AMEREN CORP. - 1.475,00 USD 30,720 34.368,93 0,29 0,29

APPLIED MATERIALS - 6.950,00 USD 11,440 60.306,43 0,50 0,50

ARCHER DANIEL - 2.168,00 USD 27,390 45.040,59 0,38 0,37

AUTODESK INC - 2.360,00 USD 35,350 63.278,22 0,53 0,53

CARNIVAL CORP CORP 1.935,00 USD 36,770 53.966,89 0,45 0,45

CBS CORP - 2.441,00 USD 38,050 70.449,07 0,59 0,59

CHESAPEAKE ENERGY CORP - 3.844,00 USD 16,620 48.458,19 0,40 0,40

CIGNA CORP. - 1.143,00 USD 53,460 46.347,68 0,39 0,39

CLOROX COMPANY - 2.876,00 USD 73,220 159.724,45 1,33 1,33

COCA-COLA ENTERPRISE - 2.972,00 USD 31,730 71.527,28 0,60 0,59

COVENTRY HEALTH CARE INC - 1.159,00 USD 44,830 39.409,87 0,33 0,33

DOVER CORPORATION - 1.533,00 USD 65,710 76.405,82 0,64 0,63

DR HORTON INC - 3.305,00 USD 19,780 49.585,03 0,41 0,41

DU PONT DE NEMOURS - 3.964,00 USD 44,970 135.210,16 1,13 1,12

DUKE REALTY CORP - 3.369,00 USD 13,870 35.442,98 0,30 0,29

EATON CORP. - 2.118,00 USD 54,200 87.071,91 0,73 0,72

ELECTRONIC ARTS - 4.371,00 USD 14,520 48.139,35 0,40 0,40

ENERGY TRANSFER PARTNERS LP - 2.618,00 USD 42,930 85.247,83 0,71 0,71

ENSCO INTERNATIONAL INC - 1.536,00 USD 59,280 69.064,08 0,58 0,57

ENTERGY CORPORATION - 669,00 USD 63,750 32.348,87 0,27 0,27

FEDEX CORP - 1.452,00 USD 91,720 101.014,44 0,84 0,84

FIFTH THIRD BANCORPORATION - 9.622,00 USD 15,190 110.860,27 0,92 0,92

FIRSTENERGY CORP - 1.482,00 USD 41,760 46.941,99 0,39 0,39

FLIR SYSTEMS INC - 2.262,00 USD 22,310 38.277,62 0,32 0,32

FOOT LOCKER INC - 1.778,00 USD 32,120 43.317,17 0,36 0,36

FOREST LABORATORIES "A" 3.245,00 USD 35,320 86.933,71 0,72 0,72

GENERAL ELEC CAP CORP - 13.031,00 USD 20,990 207.464,12 1,73 1,72

HERSHEY CORP - 2.139,00 USD 72,220 117.171,25 0,98 0,97

HOLOGIC INC - 2.057,00 USD 20,030 31.251,30 0,26 0,26

INTEL CORP - 8.953,00 USD 20,630 140.094,35 1,17 1,16

INTL PAPER COMP. - 1.734,00 USD 39,840 52.398,79 0,44 0,44

JUNIPER NETWORKS INC. - 1.873,00 USD 19,670 27.944,41 0,23 0,23

KEYCORP - 13.287,00 USD 8,420 84.857,81 0,71 0,70

KIMCO REALTY - 2.848,00 USD 19,320 41.734,95 0,35 0,35

L.S.I.LOGIC CORP - 4.446,00 USD 6,860 23.133,77 0,19 0,19

LEGG MASON INC. - 3.823,00 USD 25,720 74.580,98 0,62 0,62

MACY'S INC - 1.785,00 USD 39,020 52.829,72 0,44 0,44

MARSH & MCLENNAN CO - 4.617,00 USD 34,470 120.712,98 1,01 1,00

MCGRAW-HILL INC. - 1.516,00 USD 54,670 62.863,87 0,52 0,52

MYLAN LABORATORIES - 4.728,00 USD 27,480 98.547,82 0,82 0,82

NABORS INDUSTRIES LTD - 3.316,00 USD 14,450 36.344,21 0,30 0,30

NASDAQ OMX GROUP INC - 5.428,00 USD 25,010 102.968,96 0,86 0,86

NEWELL RUBBERMAID,INC. - 3.112,00 USD 22,270 52.566,93 0,44 0,44

NISOURCE INC. - 2.253,00 USD 24,890 42.534,26 0,35 0,35

NORDSTROM - 1.431,00 USD 53,500 58.069,25 0,48 0,48

NUCOR CORPORATION - 2.029,00 USD 43,180 66.453,44 0,55 0,55

NVIDIA CORP NAS 1.486,00 USD 12,290 13.852,35 0,12 0,12

OMNICARE INC - 1.346,00 USD 36,100 36.855,73 0,31 0,31

ORCHARD SUPPLY HARDWARE STORES - 30,00 USD 1,800 40,96

ORCHARD SUPPLY HARDWARE STORES - 30,00 USD 7,410 168,61 0,00 0,00

PEPCO HOLDING INC - 2.133,00 USD 19,610 31.726,43 0,26 0,26

PFIZER - 14.648,00 USD 25,080 278.649,76 2,32 2,31

PITNEY BOWES - 534,00 USD 10,640 4.309,59 0,04 0,04

PLAINS EXPLORATION & PRODUCT - 1.363,00 USD 46,940 48.527,93 0,40 0,40

PPG INDUSTRIES - 1.439,00 USD 135,350 147.731,08 1,23 1,23

PRINCIPAL FINANCIAL GROUP INC - 1.868,00 USD 28,520 40.409,10 0,34 0,34

PROLOGIS TRUST - 1.091,00 USD 36,490 30.196,14 0,25 0,25

R.R. DONNELLEY & SONS COMPANY - 624,00 USD 9,000 4.259,71 0,04 0,04

REGIONS FINANCIAL CORPORATION - 11.829,00 USD 7,120 63.882,34 0,53 0,53

REYNOLDS AMERICAN INC - 3.294,00 USD 41,430 103.512,15 0,86 0,86

ROCKWELL COLLINS - 996,00 USD 58,170 43.945,18 0,37 0,37

ROWAN - 2.781,00 USD 31,270 65.960,16 0,55 0,55

SANDISK CORP - 1.939,00 USD 43,560 64.064,65 0,53 0,53

SCANA CORP - 1.163,00 USD 45,640 40.260,41 0,34 0,33

SEARS HOLDINGS CORP - 681,00 USD 41,360 21.363,90 0,18 0,18

SOUTHWEST AIRLINES - 7.355,00 USD 10,240 57.126,21 0,48 0,47

SUNTRUST BANKS - 4.467,00 USD 28,350 96.055,41 0,80 0,80

SYMANTEC CORPORATION - 7.645,00 USD 18,810 109.073,46 0,91 0,91

TOTAL SYSTEMS SERVICES - 7.497,00 USD 21,420 121.803,50 1,01 1,01

TYCO INTERNATIONAL - 3.229,00 USD 29,250 71.638,54 0,60 0,60

TYSON FOODS INC -A- 4.167,00 USD 19,400 61.316,60 0,51 0,51

UNITEDHEALTH GROUP INC. - 2.801,00 USD 54,240 115.235,32 0,96 0,96

VALERO ENERGY CORPORATION - 4.209,00 USD 34,120 108.928,31 0,91 0,90

VIACOM B 1.409,00 USD 52,740 56.364,27 0,47 0,47

XEROX CORPORATION - 13.445,00 USD 6,820 69.550,14 0,58 0,58

ZIMMER HOLDINGS INC. - 968,00 USD 66,660 48.943,33 0,41 0,41

Total shares 12.013.869,32 99,99 99,71

Rights

Spain

REPSOL YPF SA CP 27/12/2012 3.236,00 EUR 0,462 1.495,03 0,01 0,01

Total rights 1.495,03 0,01 0,01

TOTAL SECURITIES PORTFOLIO 12.015.364,35 100,00 99,72

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 772.900,73 EUR 1,000 772.900,73 6,42

TOTAL RECEIVED COLLATERAL 772.900,73 6,42

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 7.102,65 AUD 1,000 5.593,08 0,05

KBC GROUP CAD 4.466,97 CAD 1,000 3.402,89 0,03

KBC GROUP CHF 2.797,50 CHF 1,000 2.318,11 0,02

KBC GROUP CZK 146.463,27 CZK 1,000 5.836,12 0,05

KBC GROUP DKK 7.563,91 DKK 1,000 1.013,79 0,01

KBC GROUP EURO -102.218,56 EUR 1,000 -102.218,56 -0,85

KBC GROUP GBP 4.336,22 GBP 1,000 5.346,10 0,04

KBC GROUP HKD 54.490,00 HKD 1,000 5.332,38 0,04

KBC GROUP HUF 1.165.549,09 HUF 1,000 4.002,30 0,03

KBC GROUP JPY 674.424,00 JPY 1,000 5.916,00 0,05

KBC GROUP MXN 130.881,24 MXN 1,000 7.644,58 0,06

KBC GROUP NOK 6.009,57 NOK 1,000 819,05 0,01

KBC GROUP NZD 3.962,43 NZD 1,000 2.479,46 0,02

KBC GROUP PLN 13.905,64 PLN 1,000 3.407,99 0,03

KBC GROUP SEK 3.160,48 SEK 1,000 368,49 0,00

KBC GROUP SGD 3.116,69 SGD 1,000 1.935,23 0,02

KBC GROUP TRY 11.170,23 TRY 1,000 4.747,23 0,04

KBC GROUP USD -145.864,05 USD 1,000 -110.637,17 -0,92

KBC GROUP ZAR 68.036,97 ZAR 1,000 6.082,44 0,05

Total demand accounts -146.610,49 -1,22

TOTAL CASH AT BANK AND IN HAND -146.610,49 -1,22

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 610,26 EUR 1,000 610,26 0,01

KBC GROUP MYR RECEIVABLE 534.208,86 MYR 1,000 132.502,14 1,10

KBC GROUP TWD TE ONTVANGEN 3.221.396,80 TWD 1,000 84.142,53 0,70

KBC GROUP USD RECEIVABLE 17,84 USD 1,000 13,53

KBC GROUP WHT TO BE RECOVERED EUR 525,30 EUR 1,000 525,30 0,00

Total receivables 217.793,76 1,81

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -772.900,73 EUR 1,000 -772.900,73 -6,42

KBC GROUP EUR PAYABLE -16.814,70 EUR 1,000 -16.814,70 -0,14

KBC GROUP TWD TE BETALEN -895.325,00 TWD 1,000 -23.385,79 -0,19

Payables -813.101,22 -6,75

TOTAL RECEIVABLES AND PAYABLES -595.307,46 -4,94

OTHER

Interest receivable EUR 17.359,97 0,14

Accrued interest EUR 637,74 0,01

Expenses payable EUR -15.617,17 -0,13

TOTAL OTHER 2.380,54 0,02

TOTAL NET ASSETS 12.048.727,67 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 1,25 1,25 1,21 3,27 Austria 0,67 0,27 0,26 0,35 Bermuda 0,54 0,32 0,33 0,34 Brazil 0,38 0,46 0,47 1,20 Canada 5,41 4,93 4,21 3,55 Switzerland 1,91 1,95 2,07 2,42 China 0,40 0,37 0,24 2,70 Czech Republic 0,49 0,48 0,42 0,43 Germany 0,20 0,15 0,17 0,34 Denmark 1,11 0,90 1,00 0,00 Spain 1,47 1,42 1,00 1,09 Finland 1,00 0,79 0,85 0,82 France 4,63 3,67 3,59 4,21 U.K. 6,52 5,98 6,64 7,76 Greece 0,47 0,38 0,00 0,00 Hong Kong 0,29 0,00 0,00 1,45 Hungary 0,24 0,22 0,26 0,00 India 0,25 0,21 0,17 0,00 Ireland 1,55 0,45 0,54 0,65 Israel 0,00 0,00 0,00 0,29 Italy 2,73 2,49 2,43 1,60 Jersey/The Channel Islands 0,32 0,41 0,47 0,54 Japan 11,96 12,86 11,95 8,00 South Korea 1,46 1,40 1,10 0,80 Luxembourg 0,52 0,34 0,29 0,00 Mexico 0,56 0,75 1,05 0,99 Malaysia 2,10 2,77 2,31 1,12 Netherlands 1,63 1,45 1,52 1,22 Norway 0,27 0,27 0,26 1,19 New Zealand 0,15 0,19 0,18 0,41 Philippines 0,66 0,84 1,10 1,11 Poland 2,08 1,57 1,77 1,25 Russia 0,51 0,00 0,00 0,00 Singapore 0,56 0,63 0,69 0,56 Sweden 1,31 1,25 1,37 1,72 Thailand 1,52 1,96 2,28 0,61 Turkey 0,63 0,58 0,68 0,39 Taiwan 1,17 1,13 1,25 0,84 U.S.A. 40,13 44,41 45,28 45,18 South Africa 0,95 0,50 0,59 1,60 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 26,65 25,55 24,72 22,07 Consum(cycl) 9,90 9,95 10,71 9,84 Cons.goods 11,46 13,02 12,58 12,10 Pharma 9,26 8,21 8,47 10,43 Financials 19,06 18,27 18,94 21,92 Technology 11,35 12,32 12,20 10,06 Telecomm. 5,15 5,35 4,75 5,08 Utilities 4,16 4,74 4,59 4,38 Real est. 3,01 2,59 3,04 4,12 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 1,25 1,30 1,24 3,31 BRL 0,38 0,46 0,47 1,20 CAD 5,42 4,94 4,21 3,57 CHF 1,54 1,53 1,61 2,26 CZK 0,50 0,50 0,44 0,48 DKK 1,12 0,92 1,04 0,01 EUR 13,94 11,66 11,02 8,76 GBP 6,85 6,39 7,11 8,32 HKD 0,70 0,38 0,24 4,18 HUF 0,24 0,22 0,27 0,03 IDR 0,25 0,21 0,17 0,00 ILS 0,00 0,00 0,00 0,29 JPY 11,95 12,87 11,94 8,03 KRW 1,46 1,39 1,10 0,80 MXN 0,58 0,77 1,05 1,05 MYR 2,10 2,76 2,31 2,21 NOK 0,28 0,30 0,27 1,20 NZD 0,17 0,22 0,20 0,43 PHP 0,66 0,84 1,26 1,11 PLN 2,10 1,62 1,79 1,28 SEK 1,31 1,25 1,37 1,71 SGD 0,03 0,02 0,02 0,02 THB 1,52 1,95 2,28 0,61 TRY 0,64 0,59 0,71 0,43 TWD 1,17 1,12 1,25 1,35 USD 42,88 45,28 46,02 45,71 ZAR 0,96 0,51 0,61 1,65 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND FALLEN ANGELS (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 87.535,80 3.108.647,78 3.196.183,58 Sales 569.618,02 4.197.747,72 4.767.365,73 Total 1 657.153,81 7.306.395,50 7.963.549,31 Subscriptions 308.989,18 72.411,31 381.400,49 Redemptions 920.951,39 1.162.565,52 2.083.516,91 Total 2 1.229.940,57 1.234.976,83 2.464.917,40 Monthly average of total assets

12.668.647,74 12.327.372,06 12.498.009,90

Turnover rate -4,52 % 49,25 % 44,00 %

1st half of year 2nd half of year YearPurchases 87.535,80 3.108.647,78 3.196.183,58 Sales 569.618,02 4.197.747,72 4.767.365,73 Total 1 657.153,81 7.306.395,50 7.963.549,31 Subscriptions 308.989,18 72.411,31 381.400,49 Redemptions 920.951,39 1.162.565,52 2.083.516,91 Total 2 1.229.940,57 1.234.976,83 2.464.917,40 Monthly average of total assets

12.717.290,34 12.287.336,41 12.449.074,94

Corrected turnover rate -4,50 % 49,41 % 44,17 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 772.900,73 772.900,73 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 1.754,81 270,00 5.594,37 1.297,00 26.989,07 5.234,00 32.223,07

2011 - 12 1.049,09 22,00 4.856,91 1.347,00 23.181,25 3.909,00 27.090,25

2012 - 12 756,04 3,00 3.531,17 783,00 20.406,13 3.129,00 23.535,13

Period Amounts received and paid by the UCI

(in the currency of the sub-fund)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 767.517,25 101.137,91 2.432.741,16 489.968,59

2011 - 12 504.674,79 9.072,58 2.287.720,08 531.686,19

2012 - 12 376.245,50 1.224,54 1.766.150,67 333.150,91

Period Net asset value

End of period (in the currency of the sub-fund)

Year Of the sub-fund Of one share

Capitalization Distribution

2010 - 12 15.376.539,04 489,28 414,84

2011 - 12 12.217.506,57 461,35 389,58

2012 - 12 12.048.727,67 523,07 439,43

2.4.5 PERFORMANCE FIGURES

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0170815956 EUR 12.24% 9.50% -0.37% 0.0464 30/04/1999 0.26%

DIV BE0170814942 EUR 12.22% 9.51% -0.37% 0.0464 30/04/1999 0.25%

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

The bar chart shows the performance for full financial years. 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 incorporated geometrically 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:

[NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [NAV(D) / NAV(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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NAV(D) / NAV(Y)] ^ [1 / X] - 1 where Y = D-X

Return on date D since the start date S of the unit: [ C * NAV(D) / NAV(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 / NAV(Di)] + 1 i = 1 ... N

from which C = C0 * .... * CN. If the interval between the two dates exceeds one year, the ordinary return calculation is

converted into a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 28/03/2013: 4.20 EUR net (5.60 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Distribution: 1.697% Capitalization: 1.687% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 80 46 57.14%

CSFBSAS 629 145 23.08%

DEUTSCHE 192 108 56.25%

EQ CSA MACQUARIE 13 7 57.15%

JP MORGAN 29 16 55.56%

MERRILL 3,725 2,128 57.14%

MORGAN STANLEY 230 90 39.19%

NOMURA 477 138 28.89%

UBSWDR 72 39 54.81%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 3.654,03 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

KGHM POLSKA MIEDZ SA PLN 587 190,000 27.333,77

LOBLAW COMPANIES LTD. CAD 5.026 41,930 160.539,48

LONMIN PLC GBP 2.991 2,842 10.480,12

POLISH OIL & GAS PLN 65.073 5,210 83.089,56

POLSKI KONCERN NAFTO PLN 3.292 49,500 39.936,77

Total 321.379,70

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 550.000 EUR 588.506,05

FRANCE - 04/55 4.00 % 25/04 EUR 134.000 EUR 164.225,44

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 18.000 EUR 20.169,23

Total 772.900,72 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund America

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND AMERICA

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 17 April 1991 Initial subscription price: 500 USD Currency: USD Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 1230.35 USD Currency: USD

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of these assets are invested in shares of American and Canadian companies.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. The debt crisis in Europe continued to rage unabated. Five euro countries have already needed a bailout from the European emergency fund. Greece twice reached an agreement during the year with its private sector creditors on restructuring the bond debt it owes them. Spain found itself in the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. Although more jobs have been created than lost in the US since 2010, the rate of employment growth has remained on the low side. Pay also increased very little. Household purchasing power consequently hardly rose and provided little support for economic growth, which remained extremely lacklustre (+2.1% y-o-y in the first three quarters of 2012). On top of that, the budgetary debate became mired in a total political impasse. The divisions between Republicans and Democrats are considerable and are ideologically driven. Aware of their inability to work out a policy and fearful that the stalemate could lead to an uncontrolled explosion in debt, the parties have passed automatic spending cuts into legislation to reduce the budget deficit to 3% of GDP over a period of ten years. The concrete measures to this end are damaging the priorities of Democrats and Republicans alike. In extremis the retiring Congress decided on New Year's Day to delay automatic spending cuts until 1 March 2013.

As far as the performance of the market was concerned, the initial phase of the economic recovery went hand in hand with a fine stock-market rally, resulting in the S&P 500 being 75% higher at the end of April 2010 than its low point on 9 March 2009. Since then, the equity markets have struggled to find fresh impetus. Of the traditional markets, Western Europe (MSCI Europe return index up +18.4% over this period) managed to claw back some of the underperformance that has built up since the start of the euro crisis in autumn 2009. Nevertheless the problems continued to mount in the EMU: they include the Greek debt restructuring, the threat of an extremist separatist party winning the Greek elections, the undercapitalisation of Spanish banks, the referendum in Ireland, and the financial collapse in Cyprus. Apparently the underperformance of European shares over many years has increased the valuation gap with US shares to such an extent that fresh events in the euro crisis have less impact on the stock markets. Wall Street closed the year substantially higher on balance (S&P500: +13.4%, Dow Jones: +7.3%), while European investors also benefited from a small increase in the value of the dollar (return MSCI USA in euros: +13.9%).

2.1.8 FUTURE POLICY The US and European barometers measuring confidence among business leaders peaked in spring 2011 at record levels, but have slipped over the past 18 months. In the US they have ended up in the twilight zone between recession and expansion. In Europe they are below freezing point. We are consequently expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as jobs growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. The foundations for more sustainable growth in 2013 and beyond have however been laid in recent years. US households have trimmed back their debt level significantly, the savings rate has already increased considerably and loan servicing (instalments and interest payments combined) now accounts for only 10% of household budgets (the lowest level in fifteen years – it was at 14% three years ago). Households are gradually moving towards a position where they can spend more of their money on consumption. The explosive growth in earnings between 2009 and 2012 bolstered companies’ already substantial cash positions. Investments were scaled back considerably during the crisis, with the foundations being laid for a catch-up process. After much squabbling between the Democrats and Republicans a compromise was after all reached on New Year's Day concerning the most urgent budgetary issues. The agreement creates certainty as to households’ tax position, while the budget deficit is being reduced sharply by a mix of tax increases and spending cuts. The agreement is however insufficient to restore US federal finances to sound health. Further measures are in the offing and a fresh programme of cuts may be expected as early as spring 2013. While that may be regarded as certain, how far the cuts go, what form they take and over what timeframe they will be spread out will need to become clear in the coming months. Lastly, the Fed is continuing to make unprecedented cash injections with its programme for purchasing government bonds and other debt paper. In doing so it wants to avert the risk that the banks will focus unduly on their solvency by insisting on overly strict lending conditions and so undermine economic growth. These cash injections will either find their way into the real economy or generate inflationary expectations. In any case they will keep long rates low and banish any fears of deflation. Our optimism concerning the US market is tempered by the current profit margins which, at least in a historical context, are already at a high level.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 405.778.341,08 152.796.244,19

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 1.932.432,67 876.822,46 C. Shares and similar instruments a) Shares 371.637.868,71 151.992.850,17 F. Derivative financial instruments m) Financial indices Futures and forward contracts (+/-) -452.625,00

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 11.907,50 c) Collateral 1.487.500,00 B. Payables a) Accounts payable (-) -173.319,52 -87.560,37 c) Borrowings (-) -346.447,92 -76.792,41

V. Deposits and cash at bank and in hand A. Demand balances at banks 31.910.528,60 300.125,18

VI. Accruals and deferrals A. Expense to be carried forward 17.992,35 B. Accrued income 232.666,31 229.185,33 C. Accrued expense (-) -462.170,27 -456.378,52

TOTAL SHAREHOLDERS' EQUITY 405.778.341,08 152.796.244,19

A. Capital 213.306.742,78 -10.732.463,04

B. Income equalization 9.375,87 -608.475,70

C. Profit(Loss) carried forward 163.524.993,46 185.431.123,53

D. Result for the period 28.937.228,97 -21.293.940,60

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.B Cash at bank and in hand/deposits 1.487.500,00

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 30.177.125,00

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -214.512,86 5.612,38 C. Shares and similar instruments a) Shares 28.420.325,48 -20.854.109,37 F. Derivative financial instruments l) Financial indices Futures and forward contracts -580.574,80 -432.451,35 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 263.832,24 65.512,34

II. Investment income and expenses A. Dividends 5.126.702,98 7.936.823,34 B. Interests a) Securities and money market instruments 271.709,03 248.440,05 b) Cash at bank and in hand and deposits 21.795,47 15.338,61 C. Interest on borrowings (-) -8.817,62 -57.083,47

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

846.687,10 147.179,65

B. Other 1.404.593,94

IV. Operating expenses A. Investment transaction and delivery costs (-) -473.091,02 -1.048.018,67 B. Financial expenses (-) -4.184,48 -27.051,46 C. Custodian's fee (-) -137.832,15 -489.688,40 D. Manager's fee (-) a) Financial management Classic Shares -547.095,47 -6.875.616,66 Institutional B Shares -3.387.707,38 -167.299,84 b) Administration and accounting management -297.765,64 -523.841,80 E. Administrative expenses (-) -7,52 F. Formation and organisation expenses (-) -20.413,94 -63.915,98 G. Remuneration, social security charges and

pension -22,57 -158,00

H. Services and sundry goods (-) -44.531,68 -120.292,04 J. Taxes Classic Shares -34.073,30 -278.697,34 Institutional B Shares -43.017,26 171.703,41 K. Other expenses (-) -220.175,64 -350.919,94

Income and expenditure for the period Subtotal II + III + IV 1.048.158,91 -78.504,60

V. Profit (loss) on ordinary activities before tax 28.937.228,97 -21.293.940,60

VII. Result for the period 28.937.228,97 -21.293.940,60

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 192.471.598,30 163.528.707,23 Profit (loss) brought forward from the previous

financial year 163.524.993,46 185.431.123,53

Profit for the period available for appropriation 28.937.228,97 -21.293.940,60 Income on the creation of shares (income on the

cancellation of shares) 9.375,87 -608.475,70

II. (Appropriations to) Deductions from capital -192.465.751,18

III. Profit (loss) to be carried forward 163.524.993,46

IV. (Dividends to be paid out) -5.847,12 -3.713,77

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND AMERICA

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 2.456.000,00 EUR 59,680 1.932.432,67 0,52 0,48

Total bonds 1.932.432,67 0,52 0,48

Shares

Exchange-listed shares

Bermuda

EVEREST RE GROUP LTD - 20.122,00 USD 109,950 2.212.413,90 0,59 0,55

Canada

ROGERS COMM. - 44.830,00 USD 45,520 2.040.661,60 0,55 0,50

WESTON GEORGE LTD - 20.088,00 CAD 70,680 1.425.984,98 0,38 0,35

Cayman Islands

HERBALIFE LTD - 11.180,00 USD 32,940 368.269,20 0,10 0,09

Ireland

INGERSOLL RAND PLC - 30.563,00 USD 47,960 1.465.801,48 0,39 0,36

Netherlands

CNH GLOBAL N.V. - 8.942,00 USD 40,290 360.273,18 0,10 0,09

Singapore

FLEXTRONICS INTL LTD - 91.182,00 USD 6,210 566.240,22 0,15 0,14

U.S.A.

ABBOTT LAB. - 44.714,00 USD 65,500 2.928.767,00 0,79 0,72

ACTIVISION INC - 55.754,00 USD 10,620 592.107,48 0,16 0,15

ADVANCE AUTO PARTS INC - 9.491,00 USD 72,350 686.673,85 0,18 0,17

AES CORP - 50.000,00 USD 10,700 535.000,00 0,14 0,13

AETNA INC NEW 60.323,00 USD 46,300 2.792.954,90 0,75 0,69

AGCO CORP - 29.948,00 USD 49,120 1.471.045,76 0,39 0,36

AGILENT TECHNOLOGIES - 15.649,00 USD 40,940 640.670,06 0,17 0,16

AKAMAI TECHNOLOGIES INC - 20.000,00 USD 40,910 818.200,00 0,22 0,20

ALBEMARLE CORP. - 7.789,00 USD 62,120 483.852,68 0,13 0,12

ALEXANDER & BALDWIN INC - 64.555,00 USD 24,720 1.595.799,60 0,43 0,39

ALLEGHANY CORP - 2.000,00 USD 335,420 670.840,00 0,18 0,17

ALLSTATE CORPORATION - 24.591,00 USD 40,170 987.820,47 0,27 0,24

AMEREN CORP. - 12.192,00 USD 30,720 374.538,24 0,10 0,09

AMERICAN EXPRESS - 42.356,00 USD 57,480 2.434.622,88 0,65 0,60

AMERISOURCEBERGEN CORP - 14.913,00 USD 43,180 643.943,34 0,17 0,16

AMGEN - 86.224,00 USD 86,320 7.442.855,68 2,00 1,83

ANADARKO PETROLEUM - 32.526,00 USD 74,310 2.417.007,06 0,65 0,60

ANALOGIC CORP. - 7.823,00 USD 74,300 581.248,90 0,16 0,14

ANIXTER INTERNATIONAL INC. - 4.300,00 USD 63,980 275.114,00 0,07 0,07

ANN TAYLOR STORES - 36.788,00 USD 33,840 1.244.905,92 0,33 0,31

ANNALY CAPITAL MANAGEMENT INC - 156.819,00 USD 14,040 2.201.738,76 0,59 0,54

APOLLO GROUP INC "A" 44.824,00 USD 20,920 937.718,08 0,25 0,23

APPLE INC - 23.096,00 USD 533,030 12.310.860,88 3,30 3,03

APPLIED MATERIALS - 101.011,00 USD 11,440 1.155.565,84 0,31 0,29

ARROW ELECTRONICS INC - 17.208,00 USD 38,080 655.280,64 0,18 0,16

ARTHROCARE CORP - 1,00 USD 34,590 34,59

ASSURANT INC - 40.383,00 USD 34,700 1.401.290,10 0,38 0,35

AT&T INC - 39.429,00 USD 33,710 1.329.151,59 0,36 0,33

ATMOS ENERGY CORP - 12.323,00 USD 35,120 432.783,76 0,12 0,11

AUTOZONE INC. - 4.472,00 USD 354,430 1.585.010,96 0,43 0,39

AVIS BUDGET GROUP INC - 26.772,00 USD 19,820 530.621,04 0,14 0,13

BANK OF AMERICA - 19.330,00 USD 11,610 224.421,30 0,06 0,06

BANK PF HAWAII CORP - 11.181,00 USD 44,050 492.523,05 0,13 0,12

BARD (C.R.) INC. - 17.016,00 USD 97,740 1.663.143,84 0,45 0,41

BECTON DICKINSON - 59.580,00 USD 78,190 4.658.560,20 1,25 1,15

BED BATH & BEYOND - 41.297,00 USD 55,910 2.308.915,27 0,62 0,57

BELDEN CDT INC - 9.832,00 USD 44,990 442.341,68 0,12 0,11

BENCHMARK ELECTRONICS INC - 45.904,00 USD 16,620 762.924,48 0,20 0,19

BEST BUY - 16.509,00 USD 11,850 195.631,65 0,05 0,05

BIG LOTS INC. - 29.976,00 USD 28,460 853.116,96 0,23 0,21

BIOGEN IDEC INC - 9.532,00 USD 146,670 1.398.058,44 0,38 0,35

BLACKROCK INC. - 10.401,00 USD 206,710 2.149.990,71 0,58 0,53

BMC SOFTWARE - 37.479,00 USD 39,660 1.486.417,14 0,40 0,37

BOSTON BEER COMPANY INC - 4.471,00 USD 134,450 601.125,95 0,16 0,15

BOSTON SCIENTIFIC - 199.065,00 USD 5,730 1.140.642,45 0,31 0,28

BRINKER INTERNATIONAL INC. - 77.341,00 USD 30,990 2.396.797,59 0,64 0,59

BRISTOL-MYERS SQUIBB CO - 50.304,00 USD 32,590 1.639.407,36 0,44 0,40

CA INC - 48.533,00 USD 21,980 1.066.755,34 0,29 0,26

CABOT MICROELECTRONIS CORP - 22.000,00 USD 35,510 781.220,00 0,21 0,19

CACI INTERNATIONAL INC A 11.177,00 USD 55,030 615.070,31 0,17 0,15

CADENCE DESIGN SYSTEMS - 75.982,00 USD 13,510 1.026.516,82 0,28 0,25

CAMPBELL SOUP CO - 56.939,00 USD 34,890 1.986.601,71 0,53 0,49

CF INDUSTRIES HOLDINGS INC - 27.118,00 USD 203,160 5.509.292,88 1,48 1,36

CHEVRON CORP - 50.590,00 USD 108,140 5.470.802,60 1,47 1,35

CHOICE HOTEL INTL - 11.177,00 USD 33,620 375.770,74 0,10 0,09

CINCINNATI FINANCIAL CORP - 6.707,00 USD 39,160 262.646,12 0,07 0,07

CINTAS CORPORATION - 11.178,00 USD 40,900 457.180,20 0,12 0,11

CISCO SYSTEMS INC - 106.439,00 USD 19,650 2.091.526,35 0,56 0,52

CITIGROUP INC - 83.845,00 USD 39,560 3.316.908,20 0,89 0,82

CLOROX COMPANY - 11.181,00 USD 73,220 818.672,82 0,22 0,20

COCA-COLA CO - 122.962,00 USD 36,250 4.457.372,50 1,20 1,10

COCA-COLA ENTERPRISE - 88.291,00 USD 31,730 2.801.473,43 0,75 0,69

COMCAST CORP SPECIAL "A" 113.527,00 USD 35,950 4.081.295,65 1,09 1,01

COMERICA INC - 19.749,00 USD 30,340 599.184,66 0,16 0,15

COMMUNITY HEALTH SYSTEMS INC - 37.774,00 USD 30,740 1.161.172,76 0,31 0,29

CONAGRA INC - 21.621,00 USD 29,500 637.819,50 0,17 0,16

CONOCOPHILLIPS - 108.819,00 USD 57,990 6.310.413,81 1,69 1,56

CONSOLIDATED EDISON - 15.981,00 USD 55,540 887.584,74 0,24 0,22

CONSTELLATION BRANDS INC "A" 65.578,00 USD 35,390 2.320.805,42 0,62 0,57

CONTINENTAL RESOURCES INC/OK - 15.968,00 USD 73,490 1.173.488,32 0,32 0,29

CORELOGIC INC - 9.479,00 USD 26,920 255.174,68 0,07 0,06

CROWN CASTLE INTL CORP - 96.726,00 USD 72,160 6.979.748,16 1,87 1,72

DEERE & COMPANY - 40.790,00 USD 86,420 3.525.071,80 0,95 0,87

DELL INC - 75.013,00 USD 10,130 759.881,69 0,20 0,19

DENBURY RESOURCES INC - 79.835,00 USD 16,200 1.293.327,00 0,35 0,32

DISCOVER FINANCIAL SERVICES - 34.975,00 USD 38,550 1.348.286,25 0,36 0,33

DISCOVERY COMMUNICATIONS INC - 50.673,00 USD 58,500 2.964.370,50 0,79 0,73

DOLBY LABORATORIES INC - 39.525,00 USD 29,330 1.159.268,25 0,31 0,29

DOVER CORPORATION - 10.109,00 USD 65,710 664.262,39 0,18 0,16

DR HORTON INC - 36.132,00 USD 19,780 714.690,96 0,19 0,18

DR.PEPPER SNAPPLE GROUP INC - 60.526,00 USD 44,180 2.674.038,68 0,72 0,66

DTE ENERGY COMPANY - 6.658,00 USD 60,050 399.812,90 0,11 0,10

DUN & BRADSTREET - 51.682,00 USD 78,650 4.064.789,30 1,09 1,00

EASTMAN CHEMICAL CO - 50.374,00 USD 68,050 3.427.950,70 0,92 0,85

EATON VANCE CORP - 36.650,00 USD 31,850 1.167.302,50 0,31 0,29

ELECTRONIC ARTS - 44.724,00 USD 14,520 649.392,48 0,17 0,16

ENDO HEALTH SOLUTIONS INC - 13.731,00 USD 26,270 360.713,37 0,10 0,09

ENERGIZER HOLDINGS INC. - 6.267,00 USD 79,980 501.234,66 0,13 0,12

ENTERGY CORPORATION - 15.529,00 USD 63,750 989.973,75 0,27 0,24

EXXON MOBIL CORP - 84.113,00 USD 86,550 7.279.980,15 1,95 1,79

FAIR ISAAC INC - 33.656,00 USD 42,030 1.414.561,68 0,38 0,35

FIFTH THIRD BANCORPORATION - 101.282,00 USD 15,190 1.538.473,58 0,41 0,38

FIRST HORIZON NATL CORP - 35.023,00 USD 9,910 347.077,93 0,09 0,09

FISERV INC - 9.200,00 USD 79,030 727.076,00 0,20 0,18

FLOWSERVE CORP - 5.000,00 USD 146,800 734.000,00 0,20 0,18

FMC TECHNOLOGIES INC. - 16.771,00 USD 42,830 718.301,93 0,19 0,18

FOREST LABORATORIES "A" 18.193,00 USD 35,320 642.576,76 0,17 0,16

FRANKLIN RESOURCES INC - 14.763,00 USD 125,700 1.855.709,10 0,50 0,46

GAMESTOP CORPORATION - 41.661,00 USD 25,090 1.045.274,49 0,28 0,26

GAP INC - 75.418,00 USD 31,040 2.340.974,72 0,63 0,58

GARDNER DENVER INC - 10.666,00 USD 68,500 730.621,00 0,20 0,18

GENERAL CABLE CORP - 26.581,00 USD 30,410 808.328,21 0,22 0,20

GENERAL ELEC CAP CORP - 13.030,00 USD 20,990 273.499,70 0,07 0,07

GENWORTH FINANCIAL INC - 18.479,00 USD 7,510 138.777,29 0,04 0,03

GILEAD SCIENCES - 19.001,00 USD 73,450 1.395.623,45 0,37 0,34

GOOGLE INC -A- 4.311,00 USD 709,370 3.058.094,07 0,82 0,75

HARRIS CORP - 29.404,00 USD 48,960 1.439.619,84 0,39 0,36

HELMERICH & PAYNE,INC. - 12.535,00 USD 56,010 702.085,35 0,19 0,17

HERTZ GLOBAL HOLDINGS INC - 20.262,00 USD 16,270 329.662,74 0,09 0,08

HESS CORP - 28.789,00 USD 52,960 1.524.665,44 0,41 0,38

HEWLETT PACKARD - 3.286,00 USD 14,250 46.825,50 0,01 0,01

HOLLY CORPORATION - 15.241,00 USD 46,550 709.468,55 0,19 0,18

HOME DEPOT - 73.605,00 USD 61,850 4.552.469,25 1,22 1,12

HORMEL FOODS CORPORATION - 14.534,00 USD 31,210 453.606,14 0,12 0,11

HUNTINGTON BANCSHARES,INC. - 113.455,00 USD 6,390 724.977,45 0,19 0,18

I.B.M. - 38.641,00 USD 191,550 7.401.683,55 1,98 1,82

IDEXX LABORATORIES INC. - 5.588,00 USD 92,800 518.566,40 0,14 0,13

ILLINOIS TOOL WORKS INC - 27.946,00 USD 60,810 1.699.396,26 0,46 0,42

INGREDION INC - 40.527,00 USD 64,430 2.611.154,61 0,70 0,64

INTEGRA LIFESCIENCES HOLDING - 11.180,00 USD 38,970 435.684,60 0,12 0,11

INTEL CORP - 146.095,00 USD 20,630 3.013.939,85 0,81 0,74

INTERCONTINENTALEXCHANGE INC - 11.039,00 USD 123,810 1.366.738,59 0,37 0,34

INTERNATIONAL GAME TECHNOLOGY - 25.308,00 USD 14,170 358.614,36 0,10 0,09

INTL PAPER COMP. - 4.137,00 USD 39,840 164.818,08 0,04 0,04

ITRON INC - 32.804,00 USD 44,550 1.461.418,20 0,39 0,36

JARDEN CORPORATION - 16.000,00 USD 51,700 827.200,00 0,22 0,20

JOHNSON & JOHNSON - 36.891,00 USD 70,100 2.586.059,10 0,69 0,64

JPMORGAN CHASE & CO - 85.915,00 USD 43,970 3.777.682,55 1,01 0,93

KB HOME - 40.000,00 USD 15,800 632.000,00 0,17 0,16

KLA-TENCOR CORPORATION - 21.916,00 USD 47,760 1.046.708,16 0,28 0,26

KOHL'S CORPORATION - 53.665,00 USD 42,980 2.306.521,70 0,62 0,57

KROGER CY - 24.634,00 USD 26,020 640.976,68 0,17 0,16

LANDSTAR SYSTEM INC - 3.596,00 USD 52,460 188.646,16 0,05 0,05

LEGG MASON INC. - 20.000,00 USD 25,720 514.400,00 0,14 0,13

LENNAR CORP. - 35.259,00 USD 38,670 1.363.465,53 0,37 0,34

LIFEPOINT HOSPITALS INC - 12.095,00 USD 37,750 456.586,25 0,12 0,11

LIMITED BRANDS - 14.792,00 USD 47,060 696.111,52 0,19 0,17

LINCOLN NATIONAL CORPORATION - 50.346,00 USD 25,900 1.303.961,40 0,35 0,32

LORILLARD INC - 14.301,00 USD 116,670 1.668.497,67 0,45 0,41

LOWE'S CIE - 52.720,00 USD 35,520 1.872.614,40 0,50 0,46

MAGELLAN HEALTH SERVICES INC - 39.869,00 USD 49,000 1.953.581,00 0,52 0,48

MANPOWER GROUP - 27.008,00 USD 42,440 1.146.219,52 0,31 0,28

MARATHON OIL CORP. - 65.761,00 USD 30,660 2.016.232,26 0,54 0,50

MARATHON PETROLEUM CORP - 40.852,00 USD 63,000 2.573.676,00 0,69 0,63

MARRIOTT INTERNATIONAL - 24.303,00 USD 37,270 905.772,81 0,24 0,22

MASCO CORP - 16.764,00 USD 16,660 279.288,24 0,08 0,07

MC DONALD'S CORP - 13.414,00 USD 88,210 1.183.248,94 0,32 0,29

MCGRAW-HILL INC. - 19.632,00 USD 54,670 1.073.281,44 0,29 0,26

MCKESSON CORP - 16.121,00 USD 96,960 1.563.092,16 0,42 0,39

MEAD JOHNSON NUTRITION CO - 12.000,00 USD 65,890 790.680,00 0,21 0,20

MEADWESTVACO CORP - 15.120,00 USD 31,870 481.874,40 0,13 0,12

MERCK & CO - 28.730,00 USD 40,940 1.176.206,20 0,32 0,29

MICROSOFT CORP - 206.808,00 USD 26,730 5.527.977,84 1,48 1,36

MINERALS TECHNOLOGIES INC - 12.548,00 USD 39,920 500.916,16 0,13 0,12

MOLSON COORS BREWING CO "B" 115.187,00 USD 42,790 4.928.851,73 1,32 1,22

MONSANTO NEW 23.083,00 USD 94,650 2.184.805,95 0,59 0,54

MONSTER BEVERAGE CORP - 18.180,00 USD 52,840 960.631,20 0,26 0,24

MOTOROLA SOLUTIONS INC - 26.393,00 USD 55,680 1.469.562,24 0,39 0,36

MYREXIS - 1.716,00 USD 2,830 4.856,28 0,00 0,00

MYRIAD GENETICS INC - 18.973,00 USD 27,250 517.014,25 0,14 0,13

NEUSTAR INC - 57.816,00 USD 41,930 2.424.224,88 0,65 0,60

NEW JERSEY RESOURES CORP - 80.650,00 USD 39,620 3.195.353,00 0,86 0,79

NEWELL RUBBERMAID,INC. - 16.765,00 USD 22,270 373.356,55 0,10 0,09

NEWMARKET CORP - 2.404,00 USD 262,200 630.328,80 0,17 0,16

NISOURCE INC. - 19.912,00 USD 24,890 495.609,68 0,13 0,12

NORDSON CORP - 15.000,00 USD 63,120 946.800,00 0,25 0,23

NORFOLK STHN CP - 25.140,00 USD 61,840 1.554.657,60 0,42 0,38

NU SKIN ENTERPRISES INC "A" 42.172,00 USD 37,050 1.562.472,60 0,42 0,39

NVR INC - 667,00 USD 920,000 613.640,00 0,16 0,15

O'REILLY AUTOMOTIVE INC. - 6.249,00 USD 89,420 558.785,58 0,15 0,14

OCEANEERING INTL INC - 11.177,00 USD 53,790 601.210,83 0,16 0,15

OGE ENERGY CORP - 4.961,00 USD 56,310 279.353,91 0,08 0,07

PAPA JOHNS INTERNATIONAL INC - 33.765,00 USD 54,940 1.855.049,10 0,50 0,46

PARKER-HANNIFIN CORPORATION - 38.306,00 USD 85,060 3.258.308,36 0,87 0,80

PARTNERRE LTD - 39.905,00 USD 80,490 3.211.953,45 0,86 0,79

PATTERSON COS INC - 23.181,00 USD 34,230 793.485,63 0,21 0,20

PATTERSON-UTI ENERGY INC. - 23.472,00 USD 18,630 437.283,36 0,12 0,11

PAYCHEX INC - 24.359,00 USD 31,140 758.539,26 0,20 0,19

PERRIGO COMP - 6.708,00 USD 104,030 697.833,24 0,19 0,17

PFIZER - 195.621,00 USD 25,080 4.906.174,68 1,32 1,21

PHILIP MORRIS INTERNATIONAL INC. - 55.894,00 USD 83,640 4.674.974,16 1,25 1,15

PHILLIPS 66 - 39.626,00 USD 53,100 2.104.140,60 0,56 0,52

PIONEER NATURAL RESOURCES CO - 15.650,00 USD 106,590 1.668.133,50 0,45 0,41

PLAINS EXPLORATION & PRODUCT - 41.153,00 USD 46,940 1.931.721,82 0,52 0,48

PNC FINANCIAL SERVICES GROUP - 15.321,00 USD 58,310 893.367,51 0,24 0,22

PPL CORP - 37.637,00 USD 28,630 1.077.547,31 0,29 0,27

PRICE T ROWE ASSOCIATION - 20.123,00 USD 65,130 1.310.610,99 0,35 0,32

PROASSURANCE CORP. - 1.952,00 USD 42,190 82.354,88 0,02 0,02

PULTE GROUP INC - 67.055,00 USD 18,160 1.217.718,80 0,33 0,30

RANGE RESOURCES CORP - 2.464,00 USD 62,830 154.813,12 0,04 0,04

REALITY INCOME CORP. - 25.000,00 USD 40,210 1.005.250,00 0,27 0,25

REPUBLIC SERVICES INC. - 16.766,00 USD 29,330 491.746,78 0,13 0,12

ROBBINS & MYERS - 25.357,00 USD 59,450 1.507.473,65 0,40 0,37

ROBERT HALF - 42.358,00 USD 31,820 1.347.831,56 0,36 0,33

ROSS STORES - 12.724,00 USD 54,150 689.004,60 0,19 0,17

RYDER SYSTEM INC. - 10.526,00 USD 49,930 525.563,18 0,14 0,13

SCHLUMBERGER - 1.662,00 USD 69,290 115.159,98 0,03 0,03

SEACOR HOLDINGS INC - 8.384,00 USD 83,800 702.579,20 0,19 0,17

SEALED AIR CORPORATION - 1.165,00 USD 17,510 20.399,15 0,01 0,01

SHERWIN-WILLIAMS COMPANY - 5.149,00 USD 153,820 792.019,18 0,21 0,20

SIMON PROPERTY GROUP INC - 16.768,00 USD 158,090 2.650.853,12 0,71 0,65

SLM CORP - 64.828,00 USD 17,130 1.110.503,64 0,30 0,27

SPRINT NEXTEL CORP - 49.969,00 USD 5,670 283.324,23 0,08 0,07

STRAYER EDUCATION INC - 5.083,00 USD 56,170 285.512,11 0,08 0,07

SUNCOKE ENERGY INC - 3.223,00 USD 15,590 50.246,57 0,01 0,01

SUNPOWER CORP -A- 2.711,00 USD 5,620 15.235,82 0,00 0,00

SUNTRUST BANKS - 9.806,00 USD 28,350 278.000,10 0,08 0,07

TARGET CORP - 10.523,00 USD 59,170 622.645,91 0,17 0,15

TECH DATA CORP - 40.644,00 USD 45,530 1.850.521,32 0,50 0,46

THE TORO COMPANY - 25.590,00 USD 42,980 1.099.858,20 0,30 0,27

THORATEC CORP - 15.653,00 USD 37,520 587.300,56 0,16 0,15

TIME WARNER CABLE INC - 10.280,00 USD 97,190 999.113,20 0,27 0,25

TIMKEN COMPANY - 12.010,00 USD 47,830 574.438,30 0,15 0,14

TORCHMARK - 11.471,00 USD 51,670 592.706,57 0,16 0,15

TRAVELERS COS INC - 31.614,00 USD 71,820 2.270.517,48 0,61 0,56

TYSON FOODS INC -A- 92.277,00 USD 19,400 1.790.173,80 0,48 0,44

UMB FINANCIAL CORPORATION - 11.179,00 USD 43,840 490.087,36 0,13 0,12

UNITED THERAPEUTICS CORP. - 30.073,00 USD 53,420 1.606.499,66 0,43 0,40

UNITEDHEALTH GROUP INC. - 12.424,00 USD 54,240 673.877,76 0,18 0,17

URS CORP - 22.358,00 USD 39,260 877.775,08 0,24 0,22

US BANCORP - 61.487,00 USD 31,940 1.963.894,78 0,53 0,48

VALERO ENERGY CORPORATION - 68.966,00 USD 34,120 2.353.119,92 0,63 0,58

VALUECLICK INC - 7.254,00 USD 19,410 140.800,14 0,04 0,04

VERIZON COMMUNICATIONS INC - 24.762,00 USD 43,270 1.071.451,74 0,29 0,26

WAL-MART STORES - 62.599,00 USD 68,230 4.271.129,77 1,15 1,05

WATSON PHARMACEUTICALS INC - 25.275,00 USD 86,000 2.173.650,00 0,58 0,54

WATTS WATER TECHNOLOGIES INC "A" 38.586,00 USD 42,990 1.658.812,14 0,45 0,41

WEIGHT WATCHERS INTERNATIONAL - 26.180,00 USD 52,360 1.370.784,80 0,37 0,34

WELLPOINT INC - 28.503,00 USD 60,920 1.736.402,76 0,47 0,43

WELLS FARGO COMPANY - 55.891,00 USD 34,180 1.910.354,38 0,51 0,47

WESTERN DIGITAL CORP - 29.212,00 USD 42,490 1.241.217,88 0,33 0,31

WEYERHAEUSER COMPANY - 108.034,00 USD 27,820 3.005.505,88 0,81 0,74

WORTHINGTON INDUSTRIES,INC. - 9.969,00 USD 25,990 259.094,31 0,07 0,06

WYNDHAM WORLDWIDE CORP - 61.631,00 USD 53,210 3.279.385,51 0,88 0,81

YAHOO INC. - 49.713,00 USD 19,900 989.288,70 0,27 0,24

ZIMMER HOLDINGS INC. - 13.633,00 USD 66,660 908.775,78 0,24 0,22

ZIONS BANCORPORATION - 108.602,00 USD 21,400 2.324.082,80 0,62 0,57

Total shares 371.637.868,71 99,60 91,59

Options and futures

Exchange-listed futures

U.S.A.

STAND & POORS MAR 13 85,00 USD 1.420,100 30.177.125,00 8,10 7,44

Suspense accounts (futures)

U.S.A.

STAND & POORS MAR 13 -30.629.750,00 USD 1,000 -30.629.750,00 -8,21 -7,55

Total options and futures -452.625,00 -0,12 -0,11

TOTAL SECURITIES PORTFOLIO 373.117.676,38 100,00 91,95

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CAD -6.731,03 CAD 1,000 -6.760,26 0,00

KBC GROUP EURO -257.594,25 EUR 1,000 -339.612,26 -0,08

KBC GROUP GBP -0,40 GBP 1,000 -0,65

KBC GROUP USD 28.740.000,85 USD 1,000 28.740.000,85 7,08

Total demand accounts 28.393.627,68 7,00

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK -40,40 EUR 1,000 -53,26

KBC GROUP FUT. REK. HKD -30,03 HKD 1,000 -3,87

KBC GROUP FUT.REK.GBP -1,71 GBP 1,000 -2,78

KBC GROUP JPY FUT REK -1.283,29 JPY 1,000 -14,84

KBC GROUP USD FUT REK 3.170.527,75 USD 1,000 3.170.527,75 0,78

Total managed futures accounts 3.170.453,00 0,78

TOTAL CASH AT BANK AND IN HAND 31.564.080,68 7,78

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP USD RECEIVABLE 11.907,50 USD 1,000 11.907,50 0,00

Netherlands

KBC CLEARING NV DEKKING USD 1.487.500,00 USD 1,000 1.487.500,00 0,37

Total receivables 1.499.407,50 0,37

Payables

Belgium

KBC GROUP USD PAYABLE -173.319,52 USD 1,000 -173.319,52 -0,04

Payables -173.319,52 -0,04

TOTAL RECEIVABLES AND PAYABLES 1.326.087,98 0,33

OTHER

Interest receivable USD 232.065,29 0,06

Accrued interest USD 601,02

Expenses payable USD -462.170,27 -0,11

TOTAL OTHER -229.503,96 -0,06

TOTAL NET ASSETS 405.778.341,08 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Bermuda 0,64 0,39 1,59 0,59 Canada 0,96 1,15 0,43 0,93 Cayman Islands 0,00 0,00 0,00 0,10 U.K. 0,17 0,00 0,00 0,00 Ireland 1,78 0,57 1,04 0,91 Mexico 0,31 0,25 0,00 0,00 Netherlands 0,00 0,00 0,00 0,10 Singapore 0,21 0,00 0,20 0,15 U.S.A. 95,93 97,64 96,74 97,22 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 25,65 22,66 17,71 21,84 Consum(cycl) 12,60 14,38 14,76 11,40 Cons.goods 13,73 15,93 17,03 17,28 Pharma 12,37 12,93 11,19 13,72 Financials 13,46 11,26 11,57 12,69 Technology 15,97 15,89 21,34 15,18 Telecomm. 2,77 2,91 1,92 3,79 Utilities 2,11 3,01 3,36 2,53 Real est. 1,34 1,03 0,91 1,57 Unit trusts 0,00 0,00 0,21 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CAD 0,84 0,84 0,01 0,35 EUR -0,22 0,52 0,08 0,39 USD 99,38 98,64 99,91 99,26 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND AMERICA (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 259.453.343,10 161.669.582,99 421.122.926,09 Sales 147.781.827,27 83.966.583,67 231.748.410,94 Total 1 407.235.170,37 245.636.166,66 652.871.337,04 Subscriptions 203.405.046,31 261.389.282,02 464.794.328,33 Redemptions 90.514.945,54 149.878.711,97 240.393.657,51 Total 2 293.919.991,85 411.267.993,99 705.187.985,84 Monthly average of total assets

265.122.859,07 333.646.010,90 299.384.434,98

Turnover rate 42,74 % -49,64 % -17,47 %

1st half of year 2nd half of year YearPurchases 259.453.343,10 161.669.582,99 421.122.926,09 Sales 147.781.827,27 83.966.583,67 231.748.410,94 Total 1 407.235.170,37 245.636.166,66 652.871.337,04 Subscriptions 203.405.046,31 261.389.282,02 464.794.328,33 Redemptions 90.514.945,54 149.878.711,97 240.393.657,51 Total 2 293.919.991,85 411.267.993,99 705.187.985,84 Monthly average of total assets

266.843.703,10 383.424.758,85 -3.243.437.619,59

Corrected turnover rate 42,46 % -43,20 % 1,61 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBCCLEAR DEKKING USD

USD 1.487.500,00 1.487.500,00 N/A 31.12.2012

STPOORS 13/03/2013

USD 30.177.125,00 30.177.125,00 250,00 20.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 841.190,05 1.475,43 910.512,71 1.207,00 545.433,08 3.564,43 548.997,51

2011 - 12 398.535,72 4.497,90 919.028,45 5.043,00 24.940,35 3.019,33 27.959,68

2012 - 12 13.842,95 516,00 12.839,03 916,00 25.944,27 2.619,33 28.563,60

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 997.559.531,57 1.374.757,45 1.062.093.598,81 1.134.658,78

2011 - 12 547.538.010,08 4.851.333,06 1.202.595.784,50 5.670.669,33

2012 - 12 20.280.756,63 596.412,61 18.768.801,43 1.069.991,47

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 723.508.985,63 1.319,62 1.050,16

2011 - 12 36.667.236,34 1.341,07 1.066,63

2012 - 12 42.694.261,79 1.523,38 1.210,74

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 196.300,00 109.793,00 86.507,00 86.507,00

2012 - 12 301.725,00 150.160,00 238.072,00 238.072,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 253.184.761,23 146.726.451,38

2012 - 12 443.858.267,42 220.848.396,63

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 116.129.007,85 1.342,42

2012 - 12 363.084.079,29 1.525,10

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0126162628 EUR 11.85% 13.36% 2.04% 3.05% 17/04/1991 4.62%

CAP BE0126162628 USD 13.59% 10.21% -0.05% 5.43% 17/04/1991 5.27%

DIV BE0152249562 EUR 11.89% 13.37% 2.04% 3.04% 17/04/1991 4.72%

DIV BE0152249562 USD 13.63% 10.22% -0.04% 5.42% 17/04/1991 5.26%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228535686 EUR 11.87% 25/11/2011 22.26%

CAP BE6228535686 USD 13.61% 25/11/2011 21.58%

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. The figures do not take account of any restructuring. Calculated in USD and 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in USD and in EUR. The return is calculated as the change in the net asset value between two dates expressed

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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 1.67 USD net (2.23 USD gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.583% Classic Shares Capitalization: 1.611% Institutional B Shares Capitalization: 1.596% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 625 391 62.50%

CSFBSAS 32,208 20,094 62.39%

EQ CSA MACQUARIE 3,594 2,247 62.50%

JP MORGAN 52,518 43,222 82.30%

MORGAN STANLEY 748 415 55.56%

NOMURA 91,058 55,983 61.48%

UBSWDR 116,857 70,091 59.98%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The S&P 500 is an equity index computed by Standard & Poor’s that is made up of 500 shares. The dividend is not reinvested. The S&P 500 serves primarily as a continuous indicator of market trends on the US stock markets. The value of the S&P 500 index is calculated on the basis of the market value of the shares of 500 companies at a given point in time, compared to the market value of the shares of 500 similar companies during the reference period from 1941 to 1943. The index is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Standard & Poor’s has all proprietary rights with repect to the index. In no way Standard & Poor’s endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Standard & Poor’s disclaims any liability for the issue and offering of the shares of this undertaking for collective investment The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to -14.441,20 USD. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Buyback America

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND BUYBACK AMERICA

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 26 June 1998 Initial subscription price: 500 USD Currency: USD Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 827.56 USD Currency: USD

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED: At least 75% of the assets are invested in the shares of US companies that pursue a policy of buying back their own shares. More particularly, companies are selected whose share buyback policy can be considered to be an important indicator for achieving a capital gain on the investment in the short or medium term.

RISK CONCENTRATION: Shares in US companies that pursue a policy of buying back their own shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund Buyback America invests in US stocks that buy back their own shares. Research has shown that companies that buy back their own shares, for valuation reasons, tend to outperform their peers over a 3-4 year period. The fund therefore adopts a buy and hold strategy for that period. The fund aims at sector neutrality, in order to avoid unintended sector bets and is measured against the MSCI USA Index.

Equity markets moved considerably higher at the start of 2012. The Fed’s announcement that rates will remain low until at least late 2014, record results from Apple and positive US GDP growth numbers were the key support factors for equity markets. It was not all good news however, as major French banks were downgraded and concerns about the Greek ‘private’ debt restructuring continued to prevail. Into February and after a short pause, markets climbed higher again in the second half of the month. Regionally, the euro area markets strongly outperformed with investors becoming convinced that after two years of crisis, the region has succeeded in isolating the Greek question. The risks of severe damage to the European economy as a whole and for the financial sector in particular fell sharply. Towards the end of the first quarter, positive macroeconomic developments, especially in the US, the successful Greek debt restructuring and the liquidity injection by central banks drove equity markets modestly higher in March. Towards the end of the month, investors’ optimism was tempered by worries over the risks for a hard landing in China and the rise in government bond yields throughout the world. The beginning of the second quarter saw a global pullback on equity markets, prompted by a slowdown in Chinese growth to its lowest level since Q2 2009, poor EU and US economic data and confirmation that the UK and Spain had slide back into recession. The European debt crisis flared up again as yields surged on Spanish bonds, the Dutch government resigned and Presidential Election in France lead to much political uncertainty. Euro area concerns escalated in May as Greek exit fears rose after elections in the country produced a stalemate and the country was unable to form a government. Statements from various European officials alluding to the fact that an exit scenario had been discussed sent markets into a tailspin. Sentiment was further hit when periphery yields spiked after Spain partially nationalized Bankia, Spain’s second largest mortgage lender. As the end of the second quarter approached, Equity markets surged on the final trading day of the June after unexpected policy responses from the EU Summit, involving an agreement to use the ESM to recapitalise banks directly and take steps towards banking union soothed market nerves and increased appetite for risk assets. Victory for the pro-EU/Bailout New Democrats in Greece also supported markets. Into the second half of the year main market developments for the quarter saw Central Banks around the world implementing a new round of monetary easing in July to avoid a slide into a fresh recession. The ECB cut each of its key rates by 25 bps, bringing the main refi rate to 0.75% - a record low and the deposit rate to 0%. Later in the month, Draghi’s comments that the “Euro is irreversible” and that the ECB will do whatever it takes to preserve the currency sparked a month-end rally in stocks globally. In the UK, the Bank of England implemented an additional GBP 50 billion of QE while in China, the PBOC cut deposit and lending rates to 3% and 6% respectively. The equity rally ran out of steam in August amid holiday season in Europe and the U.S, with little news or market developments to influence sentiment. In the US, unemployment figures continued to worsen. The Fed’s chief Bernanke hinted that the Fed was willing to provide additional policy stimulus in the near term in order to ‘promote a stronger economic recovery and sustained improvement in labour market conditions’. Overall data releases from China were weak with declining exports, industrial production and manufacturing figures. Global markets had a positive month towards quarter-end buoyed by the ECB decision to allow unlimited purchasing of short-dated bonds (under the Outright Monetary Transactions operation), of countries who have entered fiscal adjustment programmes. Following this, the German court’s decision to back the EU bailout and the announcement from the Fed that it was introducing QE3 boosted investor confidence and lead markets to rally. Into the final quarter of the year and main market developments saw consumer spending, confidence and housing indicators in the U.S remain largely positive, while in Europe the ECB left its main interest rate unchanged at 0.75%. Towards quarter-end the FOMC expanded QE in the US, by adding at additional $45 billion per month of open-ended Treasury security purchases, while the fiscal cliff has been averted by a last minute deal, but with no agreement on the debt ceiling it is likely that this issue will return in the near future. The EU approved the disbursement of the next tranche of Greek aid. The region’s stock markets were buoyed towards the end of the quarter as perceptions grew that the debt crisis had stabilized somewhat. In terms of the Buyback America fund performance, the first quarter of the year begun as quite a good one, continuing the rally that began in early January and sustaining this to quarter-end. The fund ending the quarter in positive territory on an absolute basis but disappointed in relative terms when compared to the broad index of US stocks. The main reason for the underperformance was attributed to the Technology Hardware & Equipment sector and in particular the absence of Apple Inc from the portfolio, which rose almost 50% in the quarter. On the positive side, Pharmaceuticals was the main driver of performance largely driven by stock selection particularly the exclusion of Johnson & Johnson, Merck and Bristol-Myers from the fund. The second quarter was more volatile with the fund declining on an absolute basis but broadly in line with the index. Consumer Staples was the stand out performer in the fund in the second quarter with names such as Kimberly-Clark, Pepsico and Wal-Mart for which the fund has overweight positions all outperforming the index. At the other end of the spectrum, the Real Estate sector was the biggest detractor to performance as the main sector weighting, Forestar Group underperformed the index after disappointing Q1 earnings. In further news, Apple announced a buyback in Quarter 2 for the purpose of cancelling shares and increasing shareholder value and on that basis the stock was added to the fund.

Into the second half of the year and the fund outperformed the index in the third quarter where stock allocation and selection were key contributors to positive performance. On a Sector level, the best performing sector was Real Estate (2% of the fund), driven by the significant outperformance of Forestar Group following publication of its Quarter 2 results which surprised on the upside. This was followed by Materials (4% of the fund), with the fund’s off-benchmark position in Coeur D’Alene Mines and the fund’s overweight position in Eastman Chemical contributing to the positive performance of the sector. The Software & Services sector (10% of the fund), followed by the Technology Hardware and Equipment sector (7% of the fund) were the main underperformers for the fund in the quarter. Performance in both sectors was negatively affected by the exclusion of Google and the underweight in Apple Inc respectively. Into the final quarter of the year and the fund once again outperformed the index, with Stock selection being the main driver of positive performance. During the fourth quarter, stock selection was the key contributor to positive performance. On a Sector level, the best performing sector was Software and Services (9% of the fund), driven by the significant outperformance of the fund’s overweight position in Visa Inc. The stock rose from USD134.28 to USD151.28 in the period. This was followed by Technology Hardware & Equipment sector (6.5% of the fund), with the fund’s underweight in Apple, which suffered a large decline in the period, falling from USD667.11 to USD532.17 one of the more notable positive attributors to performance. In terms of the main underperformers for the fund in the quarter, the Energy sector (12% of the fund), was the biggest detractor after the fund’s largest positions, in Chevron and Exxon both underperformed the index on the back of speculation that oil prices could decline in the coming quarters. This was followed by the Real Estate sector (2% of the fund) after Annaly Capital Management declined from USD16.84 a share to USD14.04 after it announced a reduction of its quarterly dividend from USD0.50 to USD0.45 a share. The cut further demonstrated the difficult environment that the company is in as the dividend also reflected the one-off sale proceeds of MBS in the quarter.

2.1.8 FUTURE POLICY With buyback activity picking up in the U.S I would certainly expect this trend to continue in the coming quarters. The reasons behind the environment is moving towards one that is more conducive to buybacks, continue to be valid. Ultra low interest rates available on fixed income assets is fueling demand for stocks that are returning cash to the investor. High EPS yields and low bond yields, present an opportunity for companies to shift their capital structure as debt capital is significantly cheaper. In addition, low interest rates are incentivising corporates to borrow money in the credit markets to buy back their own shares rather that finance large-scale capex or M&A. In the U.S, proposals relating to Corporate tax reform will be a further catalyst to higher dividends and increased share repurchases.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 227.191.670,82 97.015.566,52

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 580.673,99 447.583,01 C. Shares and similar instruments a) Shares 224.316.322,19 96.136.490,23 D. Other securities 10.622,40 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) 2.230,25 m) Financial indices Futures and forward contracts (+/-) 4.260,00 13.362,50

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 581.277,69 185.830,60 c) Collateral 28.000,00 648.000,00 B. Payables a) Accounts payable (-) -77.961,07 -197.862,37

V. Deposits and cash at bank and in hand A. Demand balances at banks 1.880.732,51 -131.693,59

VI. Accruals and deferrals A. Expense to be carried forward 4.894,18 B. Accrued income 172.407,21 85.720,44 C. Accrued expense (-) -294.041,70 -189.611,13

TOTAL SHAREHOLDERS' EQUITY 227.191.670,82 97.015.566,52

A. Capital 196.296.514,29 77.396.689,28

B. Income equalization 339.121,28 34.394,70

C. Profit(Loss) carried forward 19.618.877,24 26.427.266,68

D. Result for the period 10.937.158,01 -6.842.784,14

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.B Cash at bank and in hand/deposits 28.000,00 648.000,00

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 568.000,00 10.596.025,00

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -107.090,49 506,82 C. Shares and similar instruments a) Shares 10.191.984,35 3.303.375,53 D. Other securities 8.153,95 75.051,20 F. Derivative financial instruments l) Financial indices Futures and forward contracts 233.690,00 13.362,50 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -2.230,25 2.230,25 b) Other foreign exchange positions and

transactions 31.200,31 -9.955.845,93

II. Investment income and expenses A. Dividends 2.372.106,12 2.311.219,63 B. Interests a) Securities and money market instruments 144.596,73 17.217,98 b) Cash at bank and in hand and deposits 787,72 283,45 C. Interest on borrowings (-) -1.235,16 -1.551,74

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

500.621,65 16.431,55

B. Other 3.858,48

IV. Operating expenses A. Investment transaction and delivery costs (-) -402.114,70 -309.675,55 B. Financial expenses (-) -1.669,30 -3.946,15 C. Custodian's fee (-) -80.562,84 -119.969,37 D. Manager's fee (-) a) Financial management Classic Shares -657.848,16 -1.806.629,65 Institutional B Shares -948.704,21 -83.082,39 b) Administration and accounting management -115.139,20 -130.627,58 E. Administrative expenses (-) 18,88 F. Formation and organisation expenses (-) -8.765,11 -14.990,31 G. Remuneration, social security charges and

pension -10,30 -31,81

H. Services and sundry goods (-) -20.433,10 -30.152,25 J. Taxes Classic Shares -54.111,08 -82.556,90 Institutional B Shares -16.823,12 22.709,23 K. Other expenses (-) -129.245,80 -69.990,01

Income and expenditure for the period Subtotal II + III + IV 581.450,14 -281.464,51

V. Profit (loss) on ordinary activities before tax 10.937.158,01 -6.842.784,14

VII. Result for the period 10.937.158,01 -6.842.784,14

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 30.895.156,53 19.618.877,24 Profit (loss) brought forward from the previous

financial year 19.618.877,24 26.427.266,68

Profit for the period available for appropriation 10.937.158,01 -6.842.784,14 Income on the creation of shares (income on the

cancellation of shares) 339.121,28 34.394,70

II. (Appropriations to) Deductions from capital -30.811.292,61

III. Profit (loss) to be carried forward 19.618.877,24

IV. (Dividends to be paid out) -83.863,92

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND BUYBACK AMERICA

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 738.000,00 EUR 59,680 580.673,99 0,26 0,26

Total bonds 580.673,99 0,26 0,26

Shares

Exchange-listed shares

Bermuda

ASPEN INSURANCE HOLDINGS LTD - 4.962,00 USD 32,080 159.180,96 0,07 0,07

WARNER CHILCOTT LTD - 14.511,00 USD 12,040 174.712,44 0,08 0,08

Canada

SEARS CANADA INC - 528,00 CAD 10,050 5.329,44 0,00 0,00

China

SOHU.COM INC. - 4.380,00 USD 47,340 207.349,20 0,09 0,09

Ireland

INGERSOLL RAND PLC - 31.946,00 USD 47,960 1.532.130,16 0,68 0,67

South Africa

NET 1 UEPS TECHNOLOGIES INC - 19.998,00 USD 5,110 102.189,78 0,05 0,05

Switzerland

ALLIED WORLD ASSURANCE CO HOLDING - 1.923,00 USD 78,800 151.532,40 0,07 0,07

PENTAIR LTD - REGISTERED - 17.787,00 USD 49,150 874.231,05 0,39 0,39

U.K.

AMDOCS - 34.447,00 USD 33,990 1.170.853,53 0,52 0,52

U.S.A.

A SCHULMAN INC - 9.397,00 USD 28,936 271.912,53 0,12 0,12

ACTIVISION INC - 105.562,00 USD 10,620 1.121.068,44 0,50 0,49

ADOBE SYSTEMS - 71.224,00 USD 37,680 2.683.720,32 1,19 1,18

AECOM TECHNOLOGY CORP - 11.786,00 USD 23,800 280.506,80 0,13 0,12

AERCAP HOLDINGS NV - 12.376,00 USD 13,720 169.798,72 0,08 0,08

AETNA INC NEW 19.863,00 USD 46,300 919.656,90 0,41 0,41

AIRCASTLE LTD - 13.572,00 USD 12,540 170.192,88 0,08 0,08

ALCO STORES INC - 19.008,00 USD 8,780 166.890,24 0,07 0,07

ALLSTATE CORPORATION - 68.672,00 USD 40,170 2.758.554,24 1,23 1,21

AMERICAN CAPITAL AGENCY CORP - 52.620,00 USD 28,940 1.522.822,80 0,68 0,67

AMERICAN CAPITAL LTD - 66.089,00 USD 12,000 793.068,00 0,35 0,35

AMERICAN FINANCIAL GROUP INC - 3.908,00 USD 39,520 154.444,16 0,07 0,07

AMERICAN ORIENTAL BIOENGINEERI - 94.038,00 USD 0,340 31.972,92 0,01 0,01

AMERIPRISE FINANCIAL INC - 22.004,00 USD 62,630 1.378.110,52 0,61 0,61

AMERISOURCEBERGEN CORP - 27.603,00 USD 43,180 1.191.897,54 0,53 0,53

AMGEN - 38.742,00 USD 86,320 3.344.209,44 1,49 1,47

AMKOR TECHNOLOGY INC - 37.429,00 USD 4,250 159.073,25 0,07 0,07

ANALOGIC CORP. - 3.347,00 USD 74,300 248.682,10 0,11 0,11

ANIXTER INTERNATIONAL INC. - 10.090,00 USD 63,980 645.558,20 0,29 0,28

ANNALY CAPITAL MANAGEMENT INC - 141.545,00 USD 14,040 1.987.291,80 0,88 0,88

AOL INC - 12.962,00 USD 29,610 383.804,82 0,17 0,17

APPLE INC - 6.734,00 USD 533,030 3.589.424,02 1,60 1,58

APPLIED MATERIALS - 126.472,00 USD 11,440 1.446.839,68 0,64 0,64

ARRIS GROUP INC - 26.261,00 USD 14,940 392.339,34 0,17 0,17

ARROW ELECTRONICS INC - 19.176,00 USD 38,080 730.222,08 0,33 0,32

ASHLAND, INC. - 21.067,00 USD 80,410 1.693.997,47 0,75 0,75

ASSURANT INC - 4.549,00 USD 34,700 157.850,30 0,07 0,07

AT&T INC - 161.012,00 USD 33,710 5.427.714,52 2,41 2,39

AUTOBYTEL.COM - 26.767,00 USD 3,980 106.532,66 0,05 0,05

AUTONATION INC - 15.822,00 USD 39,700 628.133,40 0,28 0,28

AUTOZONE INC. - 2.850,00 USD 354,430 1.010.125,50 0,45 0,45

AVNET INC. - 32.353,00 USD 30,610 990.325,33 0,44 0,44

BANK OF NEW YORK MELLON CORP - 83.795,00 USD 25,700 2.153.531,50 0,96 0,95

BEMIS COMPANY, INC. - 6.288,00 USD 33,460 210.396,48 0,09 0,09

BENCHMARK ELECTRONICS INC - 18.949,00 USD 16,620 314.932,38 0,14 0,14

BEST BUY - 12.954,00 USD 11,850 153.504,90 0,07 0,07

BIG LOTS INC. - 5.497,00 USD 28,460 156.444,62 0,07 0,07

BIOGEN IDEC INC - 14.136,00 USD 146,670 2.073.327,12 0,92 0,91

BOB EVANS FARMS INC - 4.087,00 USD 40,200 164.297,40 0,07 0,07

BOSTON SCIENTIFIC - 101.783,00 USD 5,730 583.216,59 0,26 0,26

BRADY CORP - 6.602,00 USD 33,400 220.506,80 0,10 0,10

BRISTOW GROUP INC - 15.134,00 USD 53,660 812.090,44 0,36 0,36

BUNGE LTD. - 11.693,00 USD 72,690 849.964,17 0,38 0,37

CABLEVISION SYSTEMS "A" 11.513,00 USD 14,940 172.004,22 0,08 0,08

CACI INTERNATIONAL INC A 2.919,00 USD 55,030 160.632,57 0,07 0,07

CALPINE CORP - 89.206,00 USD 18,130 1.617.304,78 0,72 0,71

CAMBIUM LEARNING GROUP INC - 59.386,00 USD 1,110 65.918,46 0,03 0,03

CARDINAL HEALTH INC - 34.758,00 USD 41,180 1.431.334,44 0,64 0,63

CARE FUSION CORP - 24.413,00 USD 28,580 697.723,54 0,31 0,31

CBS CORP - 70.915,00 USD 38,050 2.698.315,75 1,20 1,19

CENTRAL GARDEN & PET CO - 13.257,00 USD 10,470 138.800,79 0,06 0,06

CENTRAL VALLEY COMMUNITY BANCO - 13.574,00 USD 7,760 105.334,24 0,05 0,05

CENTURY ALUMINIUM COMP. - 31.821,00 USD 8,760 278.751,96 0,12 0,12

CHEVRON CORP - 88.938,00 USD 108,140 9.617.755,32 4,28 4,23

CHICO'S FAS INC. - 25.719,00 USD 18,460 474.772,74 0,21 0,21

CHICOPEE BANCORP INC - 4.291,00 USD 15,890 68.183,99 0,03 0,03

CHILDREN'S PLACE - 3.172,00 USD 44,290 140.487,88 0,06 0,06

CINTAS CORPORATION - 24.324,00 USD 40,900 994.851,60 0,44 0,44

CISCO SYSTEMS INC - 188.449,00 USD 19,650 3.703.022,85 1,65 1,63

CLEARONE COMMUNICATIONS INC - 15.297,00 USD 4,010 61.340,97 0,03 0,03

CLEARWATER PAPER CORP - 3.845,00 USD 39,160 150.570,20 0,07 0,07

CME GROUP INC - 26.553,00 USD 50,670 1.345.440,51 0,60 0,59

COEUR D'ALENE MINES CORP - 10.997,00 USD 24,600 270.526,20 0,12 0,12

COHERENT INC. - 7.803,00 USD 50,620 394.987,86 0,18 0,17

COMPUTER SCIENCES - 13.257,00 USD 40,050 530.942,85 0,24 0,23

COMTECH TELECOMMUNICATIONS COR - 6.057,00 USD 25,380 153.726,66 0,07 0,07

CONAGRA INC - 44.455,00 USD 29,500 1.311.422,50 0,58 0,58

CONSECO INC - 26.003,00 USD 9,330 242.607,99 0,11 0,11

CORNING INC - 91.124,00 USD 12,620 1.149.984,88 0,51 0,51

CROWN CORK AND SEAL - 13.719,00 USD 36,810 504.996,39 0,23 0,22

CSX - 100.024,00 USD 19,730 1.973.473,52 0,88 0,87

CURTISS-WRIGHT CORP - 4.883,00 USD 32,830 160.308,89 0,07 0,07

CVS CAREMARK CORPORATION - 53.404,00 USD 48,350 2.582.083,40 1,15 1,14

CYTEC INDUSTRIES - 14.857,00 USD 68,830 1.022.607,31 0,46 0,45

DANA HOLDING CORP - 31.254,00 USD 15,610 487.874,94 0,22 0,22

DENBURY RESOURCES INC - 85.780,00 USD 16,200 1.389.636,00 0,62 0,61

DEVRY INC - 5.831,00 USD 23,730 138.369,63 0,06 0,06

DG FASTCHANNEL INC - 14.835,00 USD 10,910 161.849,85 0,07 0,07

DIGITAL RIVER INC - 10.452,00 USD 14,390 150.404,28 0,07 0,07

DILLARDS INC "A" 5.056,00 USD 83,770 423.541,12 0,19 0,19

DIRECTV GROUP INC - 42.569,00 USD 50,160 2.135.261,04 0,95 0,94

DUN & BRADSTREET - 2.637,00 USD 78,650 207.400,05 0,09 0,09

EATON VANCE CORP - 13.303,00 USD 31,850 423.700,55 0,19 0,19

ELECTRONIC ARTS - 25.418,00 USD 14,520 369.069,36 0,16 0,16

ELECTRONICS FOR IMAGING INC. - 21.963,00 USD 18,990 417.077,37 0,19 0,18

EMCOR GROUP INC - 14.774,00 USD 34,610 511.328,14 0,23 0,23

ENERGIZER HOLDINGS INC. - 3.743,00 USD 79,980 299.365,14 0,13 0,13

ENERSYS - 9.708,00 USD 37,630 365.312,04 0,16 0,16

ENTERGY CORPORATION - 42.269,00 USD 63,750 2.694.648,75 1,20 1,19

EURONET WORLDWIDE INC - 11.015,00 USD 23,600 259.954,00 0,12 0,11

EXXON MOBIL CORP - 152.873,00 USD 86,550 13.231.158,15 5,90 5,83

FBL FINANCIAL GROUP INC -A- 4.697,00 USD 34,210 160.684,37 0,07 0,07

FIDELITY NATIONAL FINANCIAL INC - 14.652,00 USD 23,550 345.054,60 0,15 0,15

FIDELITY NATIONAL INFORMATION - 39.368,00 USD 34,810 1.370.400,08 0,61 0,60

FIRST HORIZON NATL CORP - 44.401,00 USD 9,910 440.013,91 0,20 0,19

FISERV INC - 31.281,00 USD 79,030 2.472.137,43 1,10 1,09

FOREST LABORATORIES "A" 31.522,00 USD 35,320 1.113.357,04 0,50 0,49

FORESTAR REAL ESTATE GROUP - 11.944,00 USD 17,330 206.989,52 0,09 0,09

FRISCH'S RESTAURANT INC - 7.764,00 USD 18,500 143.634,00 0,06 0,06

GAMESTOP CORPORATION - 5.898,00 USD 25,090 147.980,82 0,07 0,07

GAP INC - 45.091,00 USD 31,040 1.399.624,64 0,62 0,62

GLATFELTER - 9.056,00 USD 17,480 158.298,88 0,07 0,07

GOLDMAN SACHS - 18.484,00 USD 127,560 2.357.819,04 1,05 1,04

GRAFTECH INTERNATIONAL LTD - 15.920,00 USD 9,390 149.488,80 0,07 0,07

GROUP 1 AUTOMOTIVE INC. - 4.083,00 USD 61,990 253.105,17 0,11 0,11

HARTE-HANKS INC - 30.773,00 USD 5,900 181.560,70 0,08 0,08

HARTFORD FIN.SERV.GR. - 19.076,00 USD 22,440 428.065,44 0,19 0,19

HEALTH NET INC - 6.612,00 USD 24,300 160.671,60 0,07 0,07

HECLA MINING - 43.760,00 USD 5,830 255.120,80 0,11 0,11

HEWLETT PACKARD - 69.094,00 USD 14,250 984.589,50 0,44 0,43

HOSPIRA INC. - 5.184,00 USD 31,240 161.948,16 0,07 0,07

HUNTSMAN CORP - 31.249,00 USD 15,900 496.859,10 0,22 0,22

ILLINOIS TOOL WORKS INC - 63.815,00 USD 60,810 3.880.590,15 1,73 1,71

INSITUFORM TECHN. CORP. - 7.500,00 USD 22,190 166.425,00 0,07 0,07

INTEGRATED DEVICE TECHNOLGY INC - 31.065,00 USD 7,300 226.774,50 0,10 0,10

INTERNATIONAL BANCSHARES CORP - 10.519,00 USD 18,050 189.867,95 0,08 0,08

INTERNATIONAL RECTIFIER - 11.363,00 USD 17,730 201.465,99 0,09 0,09

INVESTMENT TECHNOLOGY GROUP - 17.195,00 USD 9,000 154.755,00 0,07 0,07

JAKKS PACIFIC INC - 12.386,00 USD 12,520 155.072,72 0,07 0,07

JARDEN CORPORATION - 15.460,00 USD 51,700 799.282,00 0,36 0,35

JPMORGAN CHASE & CO - 113.846,00 USD 43,970 5.005.808,62 2,23 2,20

KBR INC - 20.095,00 USD 29,920 601.242,40 0,27 0,27

KEMPER CORPORATION - 5.212,00 USD 29,500 153.754,00 0,07 0,07

KIMBERLEY-CLARK CORP - 52.324,00 USD 84,430 4.417.715,32 1,96 1,94

KNIGHT TRANSPORTATION INC - 10.143,00 USD 14,630 148.392,09 0,07 0,07

KROGER CY - 5.889,00 USD 26,020 153.231,78 0,07 0,07

LEGG MASON INC. - 6.017,00 USD 25,720 154.757,24 0,07 0,07

LIFE TECHNOLOGIES CORP - 14.164,00 USD 49,030 694.460,92 0,31 0,31

LIMITED BRANDS - 24.804,00 USD 47,060 1.167.276,24 0,52 0,51

LINCOLN NATIONAL CORPORATION - 12.064,00 USD 25,900 312.457,60 0,14 0,14

LORILLARD INC - 7.051,00 USD 116,670 822.640,17 0,37 0,36

LOWE'S CIE - 62.285,00 USD 35,520 2.212.363,20 0,98 0,97

MATTHEWS INTL CORP - 5.148,00 USD 32,100 165.250,80 0,07 0,07

MB FINANCIAL INC - 10.283,00 USD 19,750 203.089,25 0,09 0,09

MENTOR GRAPHICS CORP. - 24.588,00 USD 17,020 418.487,76 0,19 0,18

MEREDITH CORPORATION - 4.969,00 USD 34,450 171.182,05 0,08 0,08

MINERALS TECHNOLOGIES INC - 21.624,00 USD 39,920 863.230,08 0,38 0,38

MKS INSTRUMENTS INC - 7.400,00 USD 25,780 190.772,00 0,09 0,08

MOLSON COORS BREWING CO "B" 11.891,00 USD 42,790 508.815,89 0,23 0,22

MOOG INC - 4.161,00 USD 41,030 170.725,83 0,08 0,08

MYLAN LABORATORIES - 38.107,00 USD 27,480 1.047.180,36 0,47 0,46

NASDAQ OMX GROUP INC - 6.372,00 USD 25,010 159.363,72 0,07 0,07

NORTHROP GRUMMAN CORPORATION - 44.217,00 USD 67,580 2.988.184,86 1,33 1,32

NORTHWEST BANCORP INC - 12.990,00 USD 12,140 157.698,60 0,07 0,07

NRG ENERGY INC - 43.417,00 USD 22,990 998.156,83 0,44 0,44

OMNIVISION TECHNOLOGIES INC - 9.728,00 USD 14,080 136.970,24 0,06 0,06

ORCHARD SUPPLY HARDWARE STORES - 56,00 USD 1,800 100,80

ORCHARD SUPPLY HARDWARE STORES - 56,00 USD 7,410 414,96

OSHKOSH CORP - 18.351,00 USD 29,650 544.107,15 0,24 0,24

OWENS CORNING - 16.065,00 USD 36,990 594.244,35 0,26 0,26

PARTNERRE LTD - 1.893,00 USD 80,490 152.367,57 0,07 0,07

PEOPLES UNITED FINANCIAL INC - 56.222,00 USD 12,090 679.723,98 0,30 0,30

PEPSICO - 91.647,00 USD 68,430 6.271.404,21 2,79 2,76

PFIZER - 335.406,00 USD 25,080 8.411.982,48 3,74 3,70

PIPER JAFFRAY CO - 5.462,00 USD 32,130 175.494,06 0,08 0,08

PLEXUS CORP - 13.027,00 USD 25,800 336.096,60 0,15 0,15

PMC-SIERRA INC - 29.958,00 USD 5,210 156.081,18 0,07 0,07

PNC FINANCIAL SERVICES GROUP - 62.006,00 USD 58,310 3.615.569,86 1,61 1,59

PRINCIPAL FINANCIAL GROUP INC - 16.453,00 USD 28,520 469.239,56 0,21 0,21

PROTECTIVE LIFE CORP - 5.675,00 USD 28,580 162.191,50 0,07 0,07

R.R. DONNELLEY & SONS COMPANY - 17.744,00 USD 9,000 159.696,00 0,07 0,07

RADIOSHACK - 72.234,00 USD 2,120 153.136,08 0,07 0,07

REN-A-CENTER INC - 4.491,00 USD 34,360 154.310,76 0,07 0,07

ROWAN - 42.148,00 USD 31,270 1.317.967,96 0,59 0,58

SAFEWAY INC. - 9.066,00 USD 18,090 164.003,94 0,07 0,07

SALLY BEAUTY CO INC - 19.410,00 USD 23,570 457.493,70 0,20 0,20

SCHWEITZER-MAUDIT INTL INC - 4.088,00 USD 39,030 159.554,64 0,07 0,07

SEARS HOLDINGS CORP - 6.401,00 USD 41,360 264.745,36 0,12 0,12

SEASPAN CORP - 9.922,00 USD 16,030 159.049,66 0,07 0,07

SERVICE CORP. INTL. - 31.812,00 USD 13,810 439.323,72 0,20 0,19

SHAW GROUP INC - 5.386,00 USD 46,610 251.041,46 0,11 0,11

SL INDUSTRIES INC - 4.648,00 USD 18,000 83.664,00 0,04 0,04

SLM CORP - 29.606,00 USD 17,130 507.150,78 0,23 0,22

SMITHFIELD FOODS INC - 7.007,00 USD 21,570 151.140,99 0,07 0,07

SOUTHWEST AIRLINES - 25.531,00 USD 10,240 261.437,44 0,12 0,12

SPARTAN STORES INC - 9.922,00 USD 15,360 152.401,92 0,07 0,07

STANCORP FINANCIAL GROUP - 4.552,00 USD 36,670 166.921,84 0,07 0,07

STANLEY WORKS - 17.952,00 USD 73,970 1.327.909,44 0,59 0,58

STAPLES INC - 17.697,00 USD 11,400 201.745,80 0,09 0,09

STATE STREET CORPORATION - 33.786,00 USD 47,010 1.588.279,86 0,71 0,70

SYMANTEC CORPORATION - 64.970,00 USD 18,810 1.222.085,70 0,54 0,54

SYNCHRONOSS TECHNOLOGIES INC - 9.436,00 USD 21,090 199.005,24 0,09 0,09

TECH DATA CORP - 11.469,00 USD 45,530 522.183,57 0,23 0,23

TELETECH HOLDINGS INC - 11.906,00 USD 17,800 211.926,80 0,09 0,09

TEXAS INSTRUMENTS - 88.571,00 USD 30,890 2.735.958,19 1,22 1,20

THE FINISH LINE INC -A- 7.453,00 USD 18,930 141.085,29 0,06 0,06

THE JM SMUCKER CO - 12.354,00 USD 86,240 1.065.408,96 0,47 0,47

THE MEN'S WEARHOUSE INC - 4.714,00 USD 31,160 146.888,24 0,07 0,07

THE VALSPAR CORPORATION - 32.374,00 USD 62,400 2.020.137,60 0,90 0,89

THERMO ELECTRONIC - 31.247,00 USD 63,780 1.992.933,66 0,89 0,88

TIDEWATER - 18.920,00 USD 44,680 845.345,60 0,38 0,37

TIME WARNER INC - 75.441,00 USD 47,830 3.608.343,03 1,60 1,59

TRAVELERS COS INC - 41.656,00 USD 71,820 2.991.733,92 1,33 1,32

TRINITY INDUSTRIES INC - 7.471,00 USD 35,820 267.611,22 0,12 0,12

TUESDAY MORNING CORP - 24.576,00 USD 6,250 153.600,00 0,07 0,07

TYCO INTERNATIONAL - 55.165,00 USD 29,250 1.613.576,25 0,72 0,71

TYSON FOODS INC -A- 14.477,00 USD 19,400 280.853,80 0,13 0,12

UMPQUA HOLDINGS CORP - 15.673,00 USD 11,790 184.784,67 0,08 0,08

UNITED FIRE GROUP INC - 7.407,00 USD 21,840 161.768,88 0,07 0,07

UNIVERSAL CORPORATION - 3.064,00 USD 49,910 152.924,24 0,07 0,07

UNUM GROUP - 7.581,00 USD 20,820 157.836,42 0,07 0,07

URS CORP - 4.132,00 USD 39,260 162.222,32 0,07 0,07

VERIZON COMMUNICATIONS INC - 90.714,00 USD 43,270 3.925.194,78 1,75 1,73

VIACOM B 41.342,00 USD 52,740 2.180.377,08 0,97 0,96

VIROPHARMA - 8.424,00 USD 22,760 191.730,24 0,09 0,08

VISA INC - 34.190,00 USD 151,580 5.182.520,20 2,30 2,28

WAL-MART STORES - 68.561,00 USD 68,230 4.677.917,03 2,08 2,06

WEBMD HEALTH CORP - 10.661,00 USD 14,340 152.878,74 0,07 0,07

WEIGHT WATCHERS INTERNATIONAL - 2.957,00 USD 52,360 154.828,52 0,07 0,07

WELLPOINT INC - 14.113,00 USD 60,920 859.763,96 0,38 0,38

WEST UNION COMPANY - 90.456,00 USD 13,610 1.231.106,16 0,55 0,54

WYNDHAM WORLDWIDE CORP - 23.470,00 USD 53,210 1.248.838,70 0,56 0,55

XL GROUP PLC "A" 20.171,00 USD 25,060 505.485,26 0,23 0,22

YAHOO INC. - 68.608,00 USD 19,900 1.365.299,20 0,61 0,60

YUM! BRANDS INC - 36.366,00 USD 66,400 2.414.702,40 1,07 1,06

Total shares 224.316.322,19 99,74 98,73

Options and futures

Exchange-listed futures

U.S.A.

STAND & POORS EMINI MAR 13 8,00 USD 1.420,000 568.000,00 0,25 0,25

Suspense accounts (futures)

U.S.A.

STAND & POORS MAR 13 -563.740,00 USD 1,000 -563.740,00 -0,25 -0,25

Total options and futures 4.260,00 0,00 0,00

TOTAL SECURITIES PORTFOLIO 224.901.256,18 100,00 98,99

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO 1.605,21 EUR 1,000 2.116,31 0,00

KBC GROUP USD 1.796.097,43 USD 1,000 1.796.097,43 0,79

Total demand accounts 1.798.213,74 0,79

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 27.861,01 EUR 1,000 36.731,96 0,02

KBC GROUP USD FUT REK 45.786,81 USD 1,000 45.786,81 0,02

Total managed futures accounts 82.518,77 0,04

TOTAL CASH AT BANK AND IN HAND 1.880.732,51 0,83

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP USD RECEIVABLE 581.277,69 USD 1,000 581.277,69 0,26

Netherlands

KBC CLEARING NV DEKKING USD 28.000,00 USD 1,000 28.000,00 0,01

Total receivables 609.277,69 0,27

Payables

Belgium

KBC GROUP USD PAYABLE -77.961,07 USD 1,000 -77.961,07 -0,03

Payables -77.961,07 -0,03

TOTAL RECEIVABLES AND PAYABLES 531.316,62 0,23

OTHER

Interest receivable USD 172.195,82 0,08

Accrued interest USD 211,39

Expenses payable USD -294.041,70 -0,13

TOTAL OTHER -121.634,49 -0,05

TOTAL NET ASSETS 227.191.670,82 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium 0,00 0,00 -0,01 0,00 Bermuda 0,64 0,34 0,19 0,15 Switzerland 0,09 0,09 0,28 0,46 China 0,00 0,08 0,10 0,09 France 0,01 0,01 0,02 0,00 U.K. 0,12 0,36 0,27 0,52 Ireland 0,72 0,60 1,49 0,94 U.S.A. 98,32 98,41 97,56 97,79 South Africa 0,10 0,11 0,10 0,05 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 24,23 23,13 21,78 22,28 Consum(cycl) 13,27 13,56 12,58 12,87 Cons.goods 12,56 15,63 14,62 13,26 Pharma 11,05 10,49 10,89 11,35 Financials 13,44 11,12 12,96 14,33 Technology 17,56 17,50 18,89 17,74 Telecomm. 4,26 4,46 4,21 4,16 Utilities 2,30 2,86 2,55 2,36 Real est. 1,33 1,25 1,52 1,65 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CAD 0,01 0,02 0,00 0,00 EUR -0,07 0,20 -0,35 0,27 USD 100,06 99,78 100,35 99,73 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND BUYBACK AMERICA

(IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 99.645.187,68 199.521.268,18 299.166.455,86 Sales 138.059.893,27 43.097.419,20 181.157.312,47 Total 1 237.705.080,96 242.618.687,38 480.323.768,34 Subscriptions 92.603.360,56 184.778.797,00 277.382.157,56 Redemptions 130.985.156,08 27.231.157,72 158.216.313,80 Total 2 223.588.516,64 212.009.954,72 435.598.471,36 Monthly average of total assets

137.048.652,30 92.841.738,37 114.945.195,33

Turnover rate 10,30 % 32,97 % 38,91 %

1st half of year 2nd half of year YearPurchases 99.645.187,68 199.521.268,18 299.166.455,86 Sales 138.059.893,27 43.097.419,20 181.157.312,47 Total 1 237.705.080,96 242.618.687,38 480.323.768,34 Subscriptions 92.603.360,56 184.778.797,00 277.382.157,56 Redemptions 130.985.156,08 27.231.157,72 158.216.313,80 Total 2 223.588.516,64 212.009.954,72 435.598.471,36 Monthly average of total assets

123.073.795,28 85.909.603,58 103.614.727,16

Corrected turnover rate 11,47 % 35,63 % 43,16 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBCCLEAR DEKKING USD

USD 28.000,00 28.000,00 N/A 28.12.2012

STPOORS EMINI MAR 13

USD 568.000,00 568.000,00 50,00 17.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 214.767,71 1.958,29 109.444,11 2.914,00 169.516,58 8.567,29 178.083,87

2011 - 12 115.344,45 5.063,75 242.413,02 2.442,00 42.448,01 11.189,04 53.637,05

2012 - 12 11.247,43 23.847,00 16.562,14 4.482,29 37.133,30 30.553,75 67.687,05

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 179.798.221,86 1.454.040,39 91.614.722,71 2.132.497,85

2011 - 12 107.923.256,70 4.296.654,18 214.546.809,94 1.983.686,19

2012 - 12 11.149.716,49 21.702.679,16 16.123.159,50 4.004.243,06

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 160.627.922,47 906,31 816,37

2011 - 12 47.486.164,60 904,25 813,53

2012 - 12 66.215.372,12 1.025,01 921,43

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 56.251,00 1.497,00 54.754,00 54.754,00

2012 - 12 248.593,38 146.334,55 157.012,83 157.012,83

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 48.881.514,01 1.334.356,51

2012 - 12 245.163.630,89 138.649.677,69

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 49.529.401,92 904,58

2012 - 12 160.976.298,71 1.025,24

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0168099951 EUR 11.62% 11.85% 3.40% 0.05 26/06/1998 3.78%

CAP BE0168099951 USD 13.35% 8.74% 1.28% 0.0742 26/06/1998 5.07%

DIV BE0168098946 EUR 11.53% 11.84% 3.40% 0.0499 26/06/1998 -3.81%

DIV BE0168098946 USD 13.26% 8.74% 1.28% 0.0742 26/06/1998 -2.62%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228536692 EUR 11.60% 25/11/2011 22.20%

CAP BE6228536692 USD 13.34% 25/11/2011 21.43%

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. The figures do not take account of any restructuring. Calculated in USD and 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in USD and in EUR. The return is calculated as the change in the net asset value between two dates expressed

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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 2.06 USD net (2.74 USD gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.973% Classic Shares Capitalization: 1.703% Institutional B Shares Capitalization: 1.776% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 62,898 37,665 59.88%

CSFBSAS 20,946 12,729 60.77%

EQ CSA MACQUARIE 22,591 13,386 59.25%

JP MORGAN 38,466 24,017 62.44%

MERRILL 20,792 12,995 62.50%

MORGAN STANLEY 29,637 17,664 59.60%

NOMURA 71,161 41,376 58.14%

UBSWDR 1,281 798 62.30%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The S&P 500 is an equity index computed by Standard & Poor’s that is made up of 500 shares. The dividend is not reinvested. The S&P 500 serves primarily as a continuous indicator of market trends on the US stock markets. The value of the S&P 500 index is calculated on the basis of the market value of the shares of 500 companies at a given point in time, compared to the market value of the shares of 500 similar companies during the reference period from 1941 to 1943. The index is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Standard & Poor’s has all proprietary rights with repect to the index. In no way Standard & Poor’s endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Standard & Poor’s disclaims any liability for the issue and offering of the shares of this undertaking for collective investment The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to -211,39 USD. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Commodities & Materials

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND COMMODITIES & MATERIALS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 25 June 1999 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 414.27 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED The assets are primarily invested in shares of industrial groups in the Materials sector. The Materials sector includes steel, iron, paper, non-ferrous metals, chemicals and construction materials. The sub-fund focuses on what are known as 'highly cyclical materials', which are therefore more sensitive to market fluctuations. The regional allocation may change from time to time. In principle, the sub-fund invests worldwide.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in 2012. The debt crisis in Europe continued to rage unabated. Five euro countries have already needed a bailout from the European emergency fund. Greece twice reached an agreement during the year with its private sector creditors on restructuring the bond debt it owes them. Spain found itself in the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue.  Although more jobs have been created than lost in the US since 2010, the rate of employment growth has remained on the low side. Pay also increased very little. Household purchasing power consequently rose to only a limited extent and provided little support for economic growth, which remained extremely lacklustre. On top of that, the budgetary debate became mired in a total political impasse. The divisions between Republicans and Democrats are considerable and are ideologically driven. Aware of their inability to work out a policy and fearful that the stalemate could lead to an uncontrolled explosion in debt, the parties have passed automatic spending cuts into legislation to reduce the budget deficit to 3% of GDP over a period of ten years. The concrete measures to this end are damaging the priorities of Democrats and Republicans alike. In extremis the retiring Congress decided on New Year's Day to delay automatic spending cuts until 1 March 2013.

Growth in Asia was once again much higher in 2012 than in the industrialised Western world, but the weak growth in those economies nevertheless weighed on exports. The slowdown in the Chinese construction industry also hit the industrial companies. Many Chinese companies proved inadequately equipped to deal with the lower pace of growth and saw a sharp decline in their margins. In the final quarter, however, there were some signs of an upturn in certain segments.  Materials did less well than broad market in 2012. Mining companies suffered badly during the first half of the year on fears of a hard landing for the Chinese economy, while paper manufacturers had to contend with higher energy costs. The growing optimism concerning the global economy during the second half provided the markets with a boost but even so the sector was unable to make good the ground it had lost on the market.  Within the sector the European stocks performed very poorly. The US performed in line while the Asian names lagged behind. In the fund we had a slight preference for European shares in relation to Asia and the US. We also held a proportion in cash on account of the marked uncertainty.  In terms of the various industry groups, miners and steel manufacturers clearly suffered most from the weakness of the economy. Chemicals, by contrast, performed strongly, as did cement stocks.  Within the fund we were slightly underweight during the first half in chemicas, which worked out to our disadvantage. During the second half we expanded that underweight position, which did prove effective, since chemicals did somewhat less well than the sector in general during that period. Within chemicals we focused in particular on fertiliser manufacturers, as global stocks of numerous crops were at historically low levels. Their high prices will stimulate increased production, with use of fertiliser one means of achieving this. We also sought out niche players like Arkema and Lanxess. On average we adopted a neutral position towards miners and steel manufacturers during the year. We had a position in several goldmining stocks in order to benefit from the high price of gold. Our slightly overweight position in cement allowed us to benefit from the strong performance in this field.

2.1.8 FUTURE POLICY Now that the fears of a hard landing for the Chinese economy have receded again to some extent and the mining shares have responded positively to this in recent months, we will be taking profits on a number of these stocks and gradually reducing our overweight position in chemicals. More specifically, we will be selling a number of goldmining shares. The price of gold has been in the doldrums since the autumn and a number of goldmining shares are contending with operational problems. The Chinese economy must gradually switch from an investment-oriented towards a more consumer-driven model, which will play to the advantage of the chemical companies, in contrast to the miners and steel manufacturers. Chemical players supplying specialist components for a wide range of consumer products and fertiliser manufacturers will be able to benefit from this switch and accordingly enjoy our preference. In addition we will also be systematically building up our position in US chemical companies that are benefiting from the low energy costs in the US and will overweight these in the portfolio. The extraction of shale gas, and fracking as a technology, have taken off enormously in the US, as reflected by the fact that the price of gas in the US is now four times lower than in Europe. Much of the new investment by the chemical industry in catalytic crackers and plants is accordingly located in the US. This won't do the American chemical companies any harm. In mining our focus will be on companies excavating raw materials that are concerned with the creation of shareholder value and where the supply and demand situation offers interesting prospects. In regional terms we do not have any particular preferences. Growth in Europe is likely to remain low for some time yet, which may explain the low valuation of certain European shares. We will try to take advantage of this by selecting European names that are moderately priced but generate a high proportion of their turnover in regions where the growth prospects are much better. In addition the US chemical sector also remains structurally interesting in view of the lower energy costs vis-à-vis Asian and European counterparts. 

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 98.679.069,61 51.079.514,95

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 2.143.523,34 1.181.185,19 C. Shares and similar instruments a) Shares 95.141.293,72 50.104.676,21 Of which securities lent 1.775.926,96 1.429.096,47 D. Other securities 13.040,92

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 19.452,67 10.843,34 b) Tax assets 20.701,83 6.796,94 B. Payables a) Accounts payable (-) -50.288,91 -111.523,59 c) Borrowings (-) -100,82 d) Collateral (-) -2.143.523,34 -1.181.185,19

V. Deposits and cash at bank and in hand A. Demand balances at banks 3.619.169,81 1.111.282,91

VI. Accruals and deferrals A. Expense to be carried forward 7.742,52 B. Accrued income 64.647,78 66.037,32 C. Accrued expense (-) -148.948,21 -116.239,88

TOTAL SHAREHOLDERS' EQUITY 98.679.069,61 51.079.514,95

A. Capital 19.074.381,23 -29.347.183,82

B. Income equalization 97.515,83 -381.468,08

C. Profit(Loss) carried forward 80.400.104,95 91.246.111,18

D. Result for the period -892.932,40 -10.437.944,33

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 2.143.523,34 1.181.185,19

IX Financial instruments lent 1.775.926,96 1.429.096,47

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares -1.091.196,66 -7.524.743,82 D. Other securities -45.601,83 -97,63 F. Derivative financial instruments m) Derivative financial instruments Swap contracts (+/-) 514.800,00 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -489.256,08 -3.401.389,47

II. Investment income and expenses A. Dividends 1.929.123,84 2.332.023,78 B. Interests a) Securities and money market instruments 81.211,81 191.906,07 b) Cash at bank and in hand and deposits 13.306,07 41.995,26 C. Interest on borrowings (-) -3.035,94 -16.043,10

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

403.114,13 6.806,52

B. Other 132.941,44

IV. Operating expenses A. Investment transaction and delivery costs (-) -306.752,40 -568.380,06 B. Financial expenses (-) -1.144,39 -63.906,94 C. Custodian's fee (-) -47.823,42 -189.799,57 D. Manager's fee (-) a) Financial management Classic Shares -363.072,43 -1.581.746,11 Institutional B Shares -765.155,04 -28.740,56 b) Administration and accounting management -82.524,37 -94.468,83 E. Administrative expenses (-) -26,36 -27,87 F. Formation and organisation expenses (-) -11.600,73 -22.221,67 G. Remuneration, social security charges and

pension -6,16 -25,56

H. Services and sundry goods (-) -13.554,26 -31.407,01 J. Taxes Classic Shares -20.031,99 -35.760,09 Institutional B Shares -8.855,38 14.896,74 K. Other expenses (-) -70.050,81 -114.555,85

Income and expenditure for the period Subtotal II + III + IV 733.122,17 -26.513,41

V. Profit (loss) on ordinary activities before tax -892.932,40 -10.437.944,33

VII. Result for the period -892.932,40 -10.437.944,33

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 79.604.688,38 80.426.698,77 Profit (loss) brought forward from the previous

financial year 80.400.104,95 91.246.111,18

Profit for the period available for appropriation -892.932,40 -10.437.944,33 Income on the creation of shares (income on the

cancellation of shares) 97.515,83 -381.468,08

II. (Appropriations to) Deductions from capital -79.556.519,50

III. Profit (loss) to be carried forward 80.400.104,95

IV. (Dividends to be paid out) -48.168,88 -26.593,82

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND COMMODITIES & MATERIALS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

ALUMINA LTD - 502.136,00 AUD 0,900 355.872,43 0,37 0,36

AMCOR - 44.046,00 AUD 8,070 279.904,89 0,29 0,28

BHP BILLITON LTD - 187.684,00 AUD 37,100 5.483.169,07 5,76 5,56

BLUESCOPE STEEL LTD - 11.126,00 AUD 3,450 30.226,55 0,03 0,03

BORAL LTD - 99.870,00 AUD 4,370 343.674,23 0,36 0,35

CSR LTD - 13.746,00 AUD 1,960 21.215,97 0,02 0,02

DULUX GROUP LTD - 8.702,00 AUD 3,780 25.902,48 0,03 0,03

FORTESCUE METALS GROUP - 67.541,00 AUD 4,650 247.315,26 0,26 0,25

ILUKA RESOURCES LTD - 41.725,00 AUD 9,020 296.369,40 0,31 0,30

INCITEC PIVOT LTD - 139.695,00 AUD 3,230 355.315,26 0,37 0,36

JAMES HARDIE INDUSTRIES NV - 62.609,00 AUD 9,120 449.637,04 0,47 0,46

NEWCREST MINING - 47.715,00 AUD 22,180 833.387,43 0,88 0,85

ONESTEEL LIMITED - 38.194,00 AUD 0,910 27.369,51 0,03 0,03

ORICA LTD - 16.504,00 AUD 25,070 325.817,21 0,34 0,33

RIO TINTO LTD - 35.497,00 AUD 66,010 1.845.150,78 1,94 1,87

WOODSIDE PETROLEUM LTD - 11.692,00 AUD 33,880 311.933,98 0,33 0,32

Belgium

NYRSTAR - 89.628,00 EUR 4,494 402.788,23 0,42 0,41

NYRSTAR STRIP VVPR 22.652,00 EUR 0,001 22,65

RECTICEL - 7.990,00 EUR 5,270 42.107,30 0,04 0,04

SOLVAY - 8.354,00 EUR 109,350 913.509,90 0,96 0,93

TESSENDERLO (BRU) STRIP-VVPR 1.122,00 EUR 0,008 8,98

TESSENDERLO - 19.688,00 EUR 24,840 489.049,92 0,51 0,50

UMICORE - 7.346,00 EUR 41,690 306.254,74 0,32 0,31

UMICORE STRIP VVPR 844,00 EUR 0,001 0,84

Bermuda

NINE DRAGONS PAPER HOLDINGS - 731.300,00 HKD 7,000 500.954,13 0,53 0,51

SINOCHEM HONG KONG HOLDINGS - 462.000,00 HKD 1,880 84.997,11 0,09 0,09

Brazil

BRASKEM SA PREF 13.424,00 BRL 12,800 63.651,49 0,07 0,07

CSN-CIA SIDERURGICA NACIONAL S.A. - 16.764,00 BRL 11,860 73.651,06 0,08 0,08

CVRD-CIA VALE DO RIO DOCE PREF A 141.180,00 BRL 40,870 2.137.442,71 2,25 2,17

FIBRIA CELULOSE SA - 39.027,00 BRL 22,570 326.297,24 0,34 0,33

GERDAU SA PREF 10.659,00 BRL 17,930 70.796,77 0,07 0,07

USIMINAS-USINAS SIDER. MINAS GERAIS PREF 25.536,00 BRL 12,800 121.081,98 0,13 0,12

VALE SA - 68.002,00 BRL 42,280 1.065.058,18 1,12 1,08

Canada

AGNICO EAGLE MINES - 26.350,00 CAD 52,130 1.046.412,36 1,10 1,06

AGRIUM INC - 6.340,00 CAD 99,140 478.820,45 0,50 0,49

BARRICK GOLD CORP - 52.664,00 CAD 34,820 1.396.937,98 1,47 1,42

ELDORADO GOLD CORP - 34.518,00 CAD 12,800 336.581,40 0,35 0,34

ENCANA CORP - 45,00 CAD 19,660 673,95 0,00 0,00

FIRST QUANTUM MINERALS LTD - 42.300,00 CAD 21,910 706.020,42 0,74 0,72

GOLDCORP INC - 38.515,00 CAD 36,570 1.072.974,44 1,13 1,09

IAMGOLD CORP - 75.912,00 CAD 11,390 658.671,20 0,69 0,67

KINROSS GOLD - 135.109,00 CAD 9,660 994.250,74 1,05 1,01

OSISKO MINING CORP - 15.341,00 CAD 8,000 93.492,80 0,10 0,10

PAN AMERICAN SILVER CORP - 14.659,00 CAD 18,640 208.154,00 0,22 0,21

POTASH CORP SASKATCH - 88.478,00 CAD 40,480 2.728.414,29 2,87 2,77

SILVER WHEATON CORP - 12.058,00 CAD 35,860 329.397,33 0,35 0,33

TECK RESOURCES CLASS B 27.695,00 CAD 36,150 762.683,21 0,80 0,77

TURQUOIS HILL RESOURCES LTD - 16.847,00 CAD 7,600 97.537,29 0,10 0,10

YAMANA GOLD INC - 11.563,00 CAD 17,110 150.714,50 0,16 0,15

China

ALIMINUM CORP OF CHINA LTD - 524.000,00 HKD 3,550 182.038,81 0,19 0,18

ANGANG NEW STEEL CO LTD - 250.000,00 HKD 5,680 138.960,92 0,15 0,14

ANHUI CONCH CEMENT CO LTD - 115.000,00 HKD 28,200 317.359,35 0,33 0,32

CHINA BLUECHEMICAL LTD - 198.000,00 HKD 5,200 100.756,46 0,11 0,10

FUJIAN ZIJIN MINING IND - 1.120.000,00 HKD 3,050 334.289,10 0,35 0,34

SINOPEC SHANGHAI PETROCHEM CO - 474.000,00 HKD 2,760 128.024,11 0,14 0,13

Finland

OUTOKUMPU A - 14.102,00 EUR 0,794 11.196,99 0,01 0,01

STORA ENSO OYJ "R" 15.362,00 EUR 5,245 80.573,69 0,09 0,08

UPM-KYMMENE CORP - 83.655,00 EUR 8,805 736.582,28 0,77 0,75

France

AIR LIQUIDE (L') - 10.171,00 EUR 95,050 966.753,55 1,02 0,98

ARKEMA - 6.499,00 EUR 79,210 514.785,79 0,54 0,52

ERAMET ERAMET 2.964,00 EUR 110,950 328.855,80 0,35 0,33

IMERYS (PAR) 891,00 EUR 48,190 42.937,29 0,05 0,04

LAFARGE - 26.668,00 EUR 48,230 1.286.197,64 1,35 1,30

Germany

BASF SE - 40.522,00 EUR 71,150 2.883.140,30 3,03 2,92

HEIDELBERGCEMENT AG - 4.654,00 EUR 45,830 213.292,82 0,22 0,22

HEIDELBERGCEMENT AG STRIP-VVPR 3.560,00 EUR 0,010 35,60

K+S AG (FRA) 19.683,00 EUR 35,000 688.905,00 0,72 0,70

KLOECKNER & CO - 41.830,00 EUR 8,968 375.131,44 0,39 0,38

LANXESS - 7.569,00 EUR 66,270 501.597,63 0,53 0,51

LINDE AG - 4.345,00 EUR 132,000 573.540,00 0,60 0,58

SALZGITTER AG - 505,00 EUR 39,425 19.909,63 0,02 0,02

THYSSENKRUPP AG - 56.250,00 EUR 17,760 999.000,00 1,05 1,01

WACKER CHEMIE AG - 5.963,00 EUR 49,645 296.033,14 0,31 0,30

Ireland

C.R.H. PLC - 30.686,00 EUR 15,300 469.495,80 0,49 0,48

Italy

ITALCEMENTI (MIL) 3.763,00 EUR 4,240 15.955,12 0,02 0,02

Japan

ASAHI KASEI CORP - 59.300,00 JPY 507,000 263.728,95 0,28 0,27

JFE HOLDINGS INC - 21.379,00 JPY 1.602,000 300.431,21 0,32 0,30

JSR CORPORATION - 28.500,00 JPY 1.639,000 409.750,00 0,43 0,42

KOBE STEEL - 190.000,00 JPY 109,000 181.666,67 0,19 0,18

MITSUBISHI CHEMICAL HOLDINGS CORP - 229.100,00 JPY 426,000 856.110,53 0,90 0,87

NIPPON PAPER GROUP - 13.800,00 JPY 1.193,000 144.415,79 0,15 0,15

NIPPON STEEL & SUMITOMO METAL - 391.174,00 JPY 210,000 720.583,68 0,76 0,73

NISSHIN STEEL HOLDINGS CO LTD - 30.400,00 JPY 790,000 210.666,67 0,22 0,21

NITTO DENKO - 9.200,00 JPY 4.220,000 340.561,40 0,36 0,35

SHIN-ETSU CHEM CO - 35.430,00 JPY 5.230,000 1.625.428,95 1,71 1,65

SUMITOMO CHEMICAL CO. - 110.000,00 JPY 269,000 259.561,40 0,27 0,26

SUMITOMO METAL MINING - 21.517,00 JPY 1.208,000 228.004,70 0,24 0,23

TAIHEIYO CEMENT CORP - 46.700,00 JPY 236,000 96.677,19 0,10 0,10

TORAY INDUSTRIES - 106.000,00 JPY 527,000 490.017,54 0,52 0,50

TOYO SEIKAN - 13.600,00 JPY 1.152,000 137.431,58 0,14 0,14

UBE INDUSTRIES LTD. - 66.700,00 JPY 206,000 120.528,07 0,13 0,12

Jersey/The Channel Islands

RANDGOLD RESOURCES LTD - 4.788,00 GBP 59,500 351.234,13 0,37 0,36

Luxembourg

ARCELORMITTAL - 141.657,00 EUR 12,935 1.832.333,30 1,93 1,86

TENARIS SA - 31.848,00 EUR 15,580 496.191,84 0,52 0,50

Mexico

CEMEX S.A. DE C.V. CPO 824.895,00 MXN 12,700 611.897,02 0,64 0,62

GRUPOMEXICO SA -B- 99.443,00 MXN 46,750 271.538,73 0,29 0,28

Netherlands

A.K.Z.O. NOBEL - 6.845,00 EUR 49,745 340.504,53 0,36 0,35

ADVANCED METALLURGICAL GROUP - 3.701,00 EUR 6,490 24.019,49 0,03 0,02

KONINKLIJKE D.S.M. NV (AMS) 9.692,00 EUR 45,790 443.796,68 0,47 0,45

Norway

YARA INTL ASA - 21.618,00 NOK 273,800 806.712,15 0,85 0,82

Peru

SOUTHERN COPPER CORP (NYSE) 11.056,00 USD 37,860 317.491,02 0,33 0,32

Poland

KGHM POLSKA MIEDZ SA - 7.592,00 PLN 190,000 353.523,03 0,37 0,36

Portugal

CIMPOR CIMENTOS DE PORTUGAL (LIS) 16.993,00 EUR 3,460 58.795,78 0,06 0,06

GALP ENERGIA SGPS SA - 11.293,00 EUR 11,760 132.805,68 0,14 0,14

Russia

JSC MMC NORILSK NICKEL ADR NEW 9.518,00 USD 18,430 133.052,75 0,14 0,14

MECHEL OAO - ADR 44.783,00 USD 6,930 235.396,08 0,25 0,24

SEVERSTAL - 9.964,00 USD 12,170 91.976,55 0,10 0,09

URALKALI - 29.047,00 USD 38,210 841.843,04 0,89 0,85

South Africa

ANGLO AMERICAN PLATINUM LTD - 4.222,00 ZAR 446,330 168.464,06 0,18 0,17

ANGLOGOLD ASHANTI LTD - 32.827,00 ZAR 262,340 769.889,97 0,81 0,78

EQSTRA HOLDINGS LTD - 11.238,00 ZAR 6,080 6.108,37 0,01 0,01

GOLD FIELDS LTD - 16.033,00 ZAR 103,750 148.708,52 0,16 0,15

IMPALA PLATINUM HOLDINGS LTD. - 13.576,00 ZAR 167,700 203.534,41 0,21 0,21

PPC LTD - 37.232,00 ZAR 34,200 113.834,90 0,12 0,12

South Korea

DC CHEMICAL CO LTD - 1.314,00 KRW 165.500,000 154.073,47 0,16 0,16

HONAM PETROCHEMICAL CORP - 1.752,00 KRW 245.500,000 304.733,43 0,32 0,31

HYUNDAI STEEL CO - 4.090,00 KRW 87.800,000 254.420,63 0,27 0,26

LG CHEM LTD - 4.234,00 KRW 330.000,000 989.918,17 1,04 1,00

POSCO - 3.162,00 KRW 349.000,000 781.847,04 0,82 0,79

Spain

ACERINOX (MAD) 5.116,00 EUR 8,348 42.708,37 0,05 0,04

REPSOL INTL FINANCE - 28.200,00 EUR 15,335 432.447,00 0,45 0,44

Sweden

SCA-SVENSKA CELLULOSA AB "B" 36.545,00 SEK 141,000 600.788,76 0,63 0,61

Switzerland

GIVAUDAN (NOM) 317,00 CHF 963,000 252.959,07 0,27 0,26

HOLCIM LTD (NOM) 23.681,00 CHF 66,900 1.312.776,68 1,38 1,33

Taiwan

CHINA STEEL CORP - 101.864,00 TWD 27,350 72.769,50 0,08 0,07

FORMOSA CHEM & FIBRE - 76.680,00 TWD 75,000 150.215,49 0,16 0,15

FORMOSA PLASTICS - 97.480,00 TWD 78,600 200.128,72 0,21 0,20

NAN YA PLASTIC - 87.532,00 TWD 56,000 128.034,27 0,14 0,13

U.K.

ANGLO AMERICAN PLC PLC 76.998,00 GBP 18,940 1.797.980,67 1,89 1,82

BILLITON PLC - 149.533,00 GBP 21,295 3.925.909,55 4,13 3,98

CAIRN ENERGY PLC - 30.000,00 GBP 2,648 97.941,07 0,10 0,10

CENTAMIN PLC - 86.304,00 GBP 0,393 41.763,43 0,04 0,04

EURASAIN NATURAL RESOURCES COR - 25.913,00 GBP 2,840 90.732,24 0,10 0,09

GLENCORE INTERNATIONAL PLC - 3.673,00 GBP 3,513 15.908,33 0,02 0,02

JOHNSON MATTHEY PLC - 4.013,00 GBP 23,760 117.555,02 0,12 0,12

KAZAKHMYS PLC - 60.420,00 GBP 7,780 579.543,34 0,61 0,59

LONMIN PLC - 28.310,00 GBP 2,842 99.194,95 0,10 0,10

MONDI PLC - 5.664,00 GBP 6,695 46.751,92 0,05 0,05

PERSIMMON - 39.637,00 GBP 8,000 390.945,63 0,41 0,40

REXAM PLC - 21.347,00 GBP 4,360 114.749,01 0,12 0,12

RIO TINTO PLC - 111.308,00 GBP 35,115 4.818.863,79 5,06 4,88

ROYAL DUTCH SHELL PLC -A- 1.123,00 EUR 25,975 29.169,93 0,03 0,03

VEDANTA RESOURCES PLC - 37.763,00 GBP 11,570 538.673,30 0,57 0,55

XSTRATA PLC - 77.735,00 GBP 10,590 1.014.934,84 1,07 1,03

U.S.A.

AIR PRODUCTS & CHEMICALS - 8.559,00 USD 84,020 545.454,48 0,57 0,55

ALCOA INCORPORATED - 103.732,00 USD 8,680 682.944,30 0,72 0,69

ALLEGHENY TECHNOLOGIES INC - 1.361,00 USD 30,360 31.340,99 0,03 0,03

ARCH COAL INC - 47.893,00 USD 7,320 265.910,77 0,28 0,27

BALL CORPORATION - 6.449,00 USD 44,750 218.896,20 0,23 0,22

CELANESE CORPORATION -A- 15.823,00 USD 44,530 534.434,31 0,56 0,54

CLEVELAND-CLIFFS INC - 35.602,00 USD 38,560 1.041.272,09 1,09 1,06

CONSOL ENERGY INC - 4.248,00 USD 32,100 103.429,00 0,11 0,11

DOMTAR CORP - 139,00 CAD 82,900 8.778,17 0,01 0,01

DOW CHEMICAL COMPANY - 64.427,00 USD 32,320 1.579.399,76 1,66 1,60

DU PONT DE NEMOURS - 39.292,00 USD 44,970 1.340.231,52 1,41 1,36

EASTMAN CHEMICAL CO - 5.820,00 USD 68,050 300.402,76 0,32 0,30

ECOLAB, INC. - 736,00 USD 71,900 40.138,35 0,04 0,04

FREEPORT-MCMORAN COPPER & GOLD, INC. - 40.298,00 USD 34,200 1.045.351,64 1,10 1,06

INTL FLAVORS & FRAG. - 3.897,00 USD 66,540 196.682,63 0,21 0,20

INTL PAPER COMP. - 27.564,00 USD 39,840 832.941,26 0,88 0,84

MARTIN MARIETTA MATERIALS - 1.372,00 USD 94,280 98.112,99 0,10 0,10

METHANEX CORPORATION - 3.364,00 CAD 31,680 81.184,98 0,09 0,08

MONSANTO NEW 32.520,00 USD 94,650 2.334.661,71 2,45 2,37

NEWMONT MINING CORP HOLDING CO - 55.214,00 USD 46,440 1.944.886,35 2,04 1,97

NUCOR CORPORATION - 21.345,00 USD 43,180 699.087,61 0,74 0,71

PPG INDUSTRIES - 9.938,00 USD 135,350 1.020.258,12 1,07 1,03

PRAXAIR - 6.443,00 USD 109,450 534.880,42 0,56 0,54

SEALED AIR CORPORATION - 8.607,00 USD 17,510 114.311,72 0,12 0,12

SHERWIN-WILLIAMS COMPANY - 293,00 USD 153,820 34.184,81 0,04 0,04

SIGMA-ALDRICH CORPORATION - 3.516,00 USD 73,580 196.228,22 0,21 0,20

THE MOSAIC COMPANY - 36.791,00 USD 56,630 1.580.305,17 1,66 1,60

UNITED STATES STEEL CORP. - 66.494,00 USD 23,870 1.203.892,43 1,27 1,22

VULCAN MATERIALS COMPANY - 22.721,00 USD 52,050 897.017,64 0,94 0,91

Total shares 95.141.293,72 99,99 96,42

Rights

Spain

REPSOL YPF SA CP 27/12/2012 28.200,00 EUR 0,462 13.028,40 0,01 0,01

U.K.

ROYAL DUTCH SHELL PLC CP 14/11/12 37,00 EUR 0,338 12,52

Total rights 13.040,92 0,01 0,01

TOTAL SECURITIES PORTFOLIO 95.154.334,64 100,00 96,43

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 2.143.523,34 EUR 1,000 2.143.523,34 2,17

TOTAL RECEIVED COLLATERAL 2.143.523,34 2,17

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 26.940,11 AUD 1,000 21.214,36 0,02

KBC GROUP CAD 19.642,05 CAD 1,000 14.963,09 0,02

KBC GROUP CHF 2.339,63 CHF 1,000 1.938,71 0,00

KBC GROUP DKK 215.115,66 DKK 1,000 28.832,01 0,03

KBC GROUP EURO 3.396.261,65 EUR 1,000 3.396.261,65 3,44

KBC GROUP GBP 323,98 GBP 1,000 399,43

KBC GROUP HKD 13.141,38 HKD 1,000 1.286,01 0,00

KBC GROUP HUF 592.472,01 HUF 1,000 2.034,45 0,00

KBC GROUP JPY 4.723.943,00 JPY 1,000 41.438,10 0,04

KBC GROUP MXN 535.372,95 MXN 1,000 31.270,32 0,03

KBC GROUP NOK 1.085,34 NOK 1,000 147,92

KBC GROUP NZD 5.457,43 NZD 1,000 3.414,95 0,00

KBC GROUP PLN 148,11 PLN 1,000 36,30

KBC GROUP SEK 21.668,84 SEK 1,000 2.526,45 0,00

KBC GROUP SGD 923,19 SGD 1,000 573,23 0,00

KBC GROUP TRY 3.727,37 TRY 1,000 1.584,09 0,00

KBC GROUP USD 38.916,41 USD 1,000 29.517,91 0,03

KBC GROUP ZAR 466.792,75 ZAR 1,000 41.730,83 0,04

Total demand accounts 3.619.169,81 3,67

TOTAL CASH AT BANK AND IN HAND 3.619.169,81 3,67

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 19.452,67 EUR 1,000 19.452,67 0,02

KBC GROUP WHT TO BE RECOVERED EUR 20.701,83 EUR 1,000 20.701,83 0,02

Total receivables 40.154,50 0,04

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-2.143.523,34 EUR 1,000 -2.143.523,34 -2,17

KBC GROUP EUR PAYABLE -50.288,91 EUR 1,000 -50.288,91 -0,05

Payables -2.193.812,25 -2,22

TOTAL RECEIVABLES AND PAYABLES -2.153.657,75 -2,18

OTHER

Interest receivable EUR 59.019,73 0,06

Accrued interest EUR 5.628,05 0,01

Expenses payable EUR -148.948,21 -0,15

TOTAL OTHER -84.300,43 -0,09

TOTAL NET ASSETS 98.679.069,61 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 13,31 14,40 13,32 11,80 Austria 0,08 0,06 0,04 0,00 Belgium 1,98 1,33 2,15 2,26 Bermuda 0,30 0,34 0,23 0,62 Brazil 6,56 5,73 4,44 4,05 Canada 11,39 9,69 12,14 11,63 Switzerland 1,08 1,80 1,20 1,65 China 0,95 1,01 0,78 1,26 Germany 8,12 6,20 4,90 6,88 Spain 0,11 0,10 0,06 0,51 Finland 0,96 0,94 1,27 0,87 France 2,03 2,41 2,85 3,30 U.K. 13,85 13,75 10,83 14,42 Ireland 0,79 0,89 0,79 0,49 Italy 0,02 0,03 0,02 0,02 Jersey/The Channel Islands 0,38 0,58 0,50 0,37 Japan 5,49 6,86 6,33 6,71 South Korea 4,83 3,45 2,97 2,61 Luxembourg 1,76 0,98 2,22 2,45 Mexico 1,48 0,71 0,83 0,93 Netherlands 1,78 2,12 1,87 0,85 Norway 1,09 1,05 1,01 0,85 Peru 0,32 0,46 0,36 0,33 Poland 1,41 0,28 0,34 0,37 Portugal 0,15 0,21 0,09 0,20 Russia 2,60 1,18 1,65 1,37 Sweden 0,20 0,71 0,66 0,63 Taiwan 0,47 0,63 0,46 0,58 U.S.A. 14,60 19,41 23,64 20,51 South Africa 1,91 2,69 2,05 1,48 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 99,51 99,41 99,06 98,88 Consum(cycl) 0,46 0,54 0,69 0,66 Cons.goods 0,02 0,03 0,04 0,04 Financials 0,01 0,02 0,01 0,01 Real est. 0,00 0,00 0,20 0,41 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 13,75 14,12 13,20 11,39 BRL 6,77 5,61 4,37 3,91 CAD 11,86 9,63 12,18 11,31 CHF 1,12 1,77 1,18 1,59 DKK 0,02 0,06 0,04 0,03 EUR 14,49 16,75 16,22 20,64 GBP 14,66 14,01 11,56 14,22 HKD 1,29 1,33 0,99 1,81 JPY 5,85 6,79 6,25 6,51 KRW 4,99 3,38 2,92 2,52 MXN 1,52 0,75 0,82 0,93 NOK 1,12 1,03 1,20 0,82 NZD 0,00 0,01 0,01 0,00 PLN 1,46 0,28 0,42 0,36 SEK 0,21 0,70 0,65 0,61 SGD 0,18 0,00 0,00 0,00 TRY 0,16 0,00 0,00 0,00 TWD 0,49 0,62 0,45 0,56 USD 18,09 20,52 25,52 21,32 ZAR 1,97 2,64 2,02 1,47 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND COMMODITIES &

MATERIALS (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 50.273.247,26 81.863.408,59 132.136.655,85 Sales 29.984.128,59 55.670.603,16 85.654.731,75 Total 1 80.257.375,85 137.534.011,75 217.791.387,60 Subscriptions 54.464.586,04 84.712.475,71 139.177.061,75 Redemptions 34.339.828,47 56.268.075,60 90.607.904,07 Total 2 88.804.414,51 140.980.551,31 229.784.965,82 Monthly average of total assets

80.777.842,31 80.971.388,92 80.874.615,62

Turnover rate -10,58 % -4,26 % -14,83 %

1st half of year 2nd half of year YearPurchases 50.273.247,26 81.863.408,59 132.136.655,85 Sales 29.984.128,59 55.670.603,16 85.654.731,75 Total 1 80.257.375,85 137.534.011,75 217.791.387,60 Subscriptions 54.464.586,04 84.712.475,71 139.177.061,75 Redemptions 34.339.828,47 56.268.075,60 90.607.904,07 Total 2 88.804.414,51 140.980.551,31 229.784.965,82 Monthly average of total assets

95.754.410,30 -170.283.575,15 246.224.147,49

Corrected turnover rate -8,93 % 2,02 % -4,87 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 2.143.523,34 2.143.523,34 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 503.488,55 594,97 477.182,09 1.816,00 477.310,00 3.438,97 480.748,96

2011 - 12 257.673,21 42.633,98 692.304,63 27.858,00 42.678,58 18.214,94 60.893,53

2012 - 12 13.745,30 3.769,14 18.188,39 5.653,99 38.235,50 16.330,10 54.565,60

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 228.464.253,78 239.722,51 212.465.526,36 693.788,81

2011 - 12 135.380.573,23 19.279.061,25 358.068.471,76 11.957.131,62

2012 - 12 6.529.466,45 1.513.807,88 8.364.277,24 2.224.272,13

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 251.866.984,10 524,43 450,71

2011 - 12 25.832.720,93 443,42 379,25

2012 - 12 24.883.979,95 477,08 406,76

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 59.541,45 2.611,00 56.930,45 56.930,45

2012 - 12 276.050,35 178.446,79 154.534,01 154.534,01

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 26.208.008,54 1.164.280,73

2012 - 12 131.784.632,99 80.720.014,06

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 25.246.794,01 443,47

2012 - 12 73.795.089,66 477,53

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0171291868 EUR 6.59% 4.00% -3.23% 0.0398 25/06/1999 -0.42%

DIV BE0171290852 EUR 6.64% 3.92% -3.28% 0.0395 25/06/1999 -0.44%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228540736 EUR 6.68% 24/11/2011 12.79%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 2.21 EUR net (2.95 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.727% Classic Shares Capitalization: 1.776% Institutional B Shares Capitalization: 1.723% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 43,593 24,913 57.15%

CSFBSAS 18,777 10,885 57.97%

DEUTSCHE 15,943 8,834 55.41%

EQ CSA MACQUARIE 4,820 2,992 62.07%

HSBC 3,954 2,046 51.75%

JP MORGAN 3,241 1,801 55.56%

MERRILL 6,332 3,942 62.25%

MORGAN STANLEY 9,036 4,707 52.09%

NOMURA 25,784 13,947 54.09%

SOCGEN 889 413 46.44%

UBSWDR 20,603 11,784 57.20%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 90.661,68 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ALUMINUM CORP OF CHINA LTD -H- HKD 523.999 3,550 182.038,46

ANGANG STEEL COMPANY LTD 'H' HKD 249.999 5,680 138.960,37

ANGLO AMERICAN PLATINUM LTD ZAR 4.200 446,330 167.586,23

BORAL LTD AUD 93.506 4,370 321.774,33

ERAMET EUR 152 110,950 16.864,40

GOLD FIELDS LTD ZAR 5.000 103,750 46.375,76

INCITEC PIVOT LTD AUD 84 3,230 213,65

KGHM POLSKA MIEDZ SA PLN 7.188 190,000 334.710,68

LONMIN PLC GBP 10.110 2,842 35.424,26

NIPPON PAPER GROUP INC JPY 13.799 1193,000 144.405,32

ORICA AUD 127 25,070 2.507,20

SINOPEC SHANGHAI PETROCH-H- HKD 188.000 2,760 50.777,50

ZIJIN MINING GROUP CO -H- HKD 1.119.999 3,050 334.288,80

Total 1.775.926,96

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 550.000 EUR 588.506,05

FRANCE 2003 2,25% 25/07/2020 EUR 764.000 EUR 1.111.660,49

FRANCE 2004 1,60% 25/07/2015 EUR 147.000 EUR 188.895,29

FRANCE - 04/55 4.00 % 25/04 EUR 1.000 EUR 1.225,56

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 226.000 EUR 253.235,94

Total 2.143.523,33 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Consumer Durables

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND CONSUMER DURABLES

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 1 October 1999 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 268.07 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED The sub-fund will invest at least 75% of its assets in shares from sectors associated with consumption, including wholesale and retail trade and manufacturers of consumer goods. The manager is responsible for the stock picking. The selection is not restricted to shares from a particular stock-market index. The sub-fund invests worldwide.

RISK CONCENTRATION Shares in consumption-sensitive sectors.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. In Europe the debt crisis continued to rage unabated. Five euro countries needed a bail-out from the European emergency funds. Greece twice reached an agreement during the year with its private sector creditors concerning a rescheduling of its bond debts in their hands. Spain came into the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. Although more jobs have in fact been created than lost in the US since 2010, the rate of employment growth has remained on the low side. And wages increased very little: Household purchasing power consequently rose to only a limited extent and provided little support for economic growth, which remained extremely lacklustre (+2.1% y-o-y in the first three quarters of 2012).

In the EMU real GDP shrank by 0.3% y-o-y. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany fulfilled its traditional role as locomotive of the European economy to a lesser extent than in the recent past. Greater divergence within Europe resulted in a further decline in unemployment in Germany and an alarmingly rapid rise in unemployment in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. The weak growth in the Old World was also not without its consequences for the export performance of the growth countries. Over the past few years, however, domestic demand (due to a rapidly growing middle class with a high consumption ratio) and inter-regional trade within Asia have played an increasingly important role. The region is better armed to deal with financial crises than it was in the past. Public finances are healthy, the balance of payments is generally neutral (China actually has an astronomical surplus) and the domestic savings buffer is high. Asia’s economic development no longer depends on fickle foreign capital. Thanks to the contribution by the New World the growth of world GDP held up in 2012 (estimated at 2-2.5%).

2.1.8 FUTURE POLICY The US and European barometers measuring confidence among business leaders peaked in spring 2011 at record levels, but have slipped over the past 18 months. In the US they have ended up in the twilight zone between recession and expansion. In Europe they are below freezing point. We are expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as jobs growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. In Europe the budgetary plans, the banks' tighter lending policy and the high level of uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could still see a further contraction in European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. Economic growth in Europe will remain below par. There is a greater need for budgetary reform in Europe than in the US, while monetary policy is less aggressive and banks' lending policy more restrictive. The euro crisis has led the European banks to adopt a tough stance on lending. In contrast, real wage rises (however limited) will be somewhat higher in Europe than in the US. Today's world is one of two-speed economies. The mature industrialised economies (US, Europe, Japan) still find themselves in a low-growth environment, with no underlying inflationary pressure, persistently low interest rates and runaway public finances. The picture in the ‘new world’ is altogether different. The strong economic growth has already created inflationary pressure in Asia. As a result, monetary policy in the region will need to be more cautious, or even restrictive (as in 2011) rather than accommodating (as at present). Monetary policy in China and elsewhere in Asia is therefore primed for adjustment and geared to preventing asset-price inflation. This implies not only adjusting interest rates but also active intervention on the credit and foreign exchange markets. This cautious policy is beginning to bear fruit. In China, the rate of increase in the money supply has already slowed considerably, to match the rate of nominal GDP growth. Inflation has fallen from 6.5% in September 2011 to 2.1% in November 2012. The risk of overheating therefore appears under control. In a year in which there will be a change in leadership of the Chinese Communist Party, little will be left to chance and economic growth will be barely lower than in previous years. One of the major challenges for this decade will be the further development of consumption in China and the rest of Asia. That could help bring about a more balanced economic world order: it will not only reduce the region’s dependence on exports but, at least as importantly, will have an effect on international capital flows. More consumption in China will mean lower savings and higher imports, including from the US. That will help the West to ‘grow out’ of its debt problems.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 35.028.703,05 16.324.731,38

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 348.250,04 313.783,75 C. Shares and similar instruments a) Shares 35.159.863,23 16.311.742,91 Of which securities lent 324.226,62 333.515,32 D. Other securities 1.194,01

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 25.009,85 b) Tax assets 1.648,00 B. Payables a) Accounts payable (-) -40.329,39 -7.501,91 c) Borrowings (-) -96.887,58 -11.128,25 d) Collateral (-) -348.250,04 -313.783,75

V. Deposits and cash at bank and in hand A. Demand balances at banks 55.656,97 71.774,48

VI. Accruals and deferrals A. Expense to be carried forward 2.217,49 B. Accrued income 22.415,89 23.613,31 C. Accrued expense (-) -97.025,92 -68.828,66

TOTAL SHAREHOLDERS' EQUITY 35.028.703,05 16.324.731,38

A. Capital 20.839.932,31 6.219.851,88

B. Income equalization -175.217,47 18.714,44

C. Profit(Loss) carried forward 10.104.879,50 11.000.096,94

D. Result for the period 4.259.108,71 -913.931,88

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 348.250,04 313.783,75

IX Financial instruments lent 324.226,62 333.515,32

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 2.570.451,92 46.465,08 D. Other securities 12.840,61 -165,54 G. Receivables, deposits, cash at bank and in hand

and payables -0,01

H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 1.188.658,17 -797.996,46

II. Investment income and expenses A. Dividends 1.085.772,75 538.529,69 B. Interests a) Securities and money market instruments 21.593,32 57.751,23 b) Cash at bank and in hand and deposits 443,44 3.637,27 C. Interest on borrowings (-) -1.064,66 -3.210,70

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

346.736,45 2.400,90

B. Other 4.528,29

IV. Operating expenses A. Investment transaction and delivery costs (-) -213.371,65 -173.811,17 B. Financial expenses (-) -454,88 -3.286,67 C. Custodian's fee (-) -15.240,20 -56.898,67 D. Manager's fee (-) a) Financial management Classic Shares -100.454,74 -432.981,31 Institutional B Shares -536.487,63 -11.754,57 b) Administration and accounting management -46.658,36 -28.795,24 F. Formation and organisation expenses (-) -4.744,84 -33.208,79 G. Remuneration, social security charges and

pension -6,19 -6,54

H. Services and sundry goods (-) -7.288,57 21.467,20 J. Taxes Classic Shares -4.447,68 -13.214,12 Institutional B Shares -3.779,44 6.062,00 K. Other expenses (-) -33.389,10 -39.443,76

Income and expenditure for the period Subtotal II + III + IV 487.158,02 -162.234,96

V. Profit (loss) on ordinary activities before tax 4.259.108,71 -913.931,88

VII. Result for the period 4.259.108,71 -913.931,88

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 14.188.770,74 10.104.879,50 Profit (loss) brought forward from the previous

financial year 10.104.879,50 11.000.096,94

Profit for the period available for appropriation 4.259.108,71 -913.931,88 Income on the creation of shares (income on the

cancellation of shares) -175.217,47 18.714,44

II. (Appropriations to) Deductions from capital -14.185.263,05

III. Profit (loss) to be carried forward 10.104.879,50

IV. (Dividends to be paid out) -3.507,69

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND CONSUMER DURABLES

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

CROWN LTD - 3.249,00 AUD 10,670 27.298,87 0,08 0,08

ECHO ENTERTAINMENT GROUP LTD - 7.355,00 AUD 3,440 19.923,77 0,06 0,06

FAIRFAX MEDIA LTD - 34.600,00 AUD 0,510 13.895,58 0,04 0,04

HARVEY NORMAN HOLDINGS LTD - 2.281,00 AUD 1,900 3.412,79 0,01 0,01

TABCORP HOLDINGS - 7.375,00 AUD 3,050 17.713,01 0,05 0,05

TATTERSALL'S LTD - 5.701,00 AUD 3,010 13.512,88 0,04 0,04

THE NEWS CORPORATION INC NEW 'A' 14.684,00 USD 25,510 284.123,82 0,81 0,81

THE NEWS CORPORATION INC NEW 'B' 3.371,00 USD 26,240 67.092,72 0,19 0,19

VIRGIN MEDIA INC - 3.192,00 USD 36,750 88.976,03 0,25 0,25

Belgium

TELENET STRP-VVPR 43.125,00 EUR 0,001 43,13

Brazil

ANHANGUERA EDUCACIONAL PARTICIPACOES - 2.043,00 BRL 34,570 26.162,81 0,07 0,08

CIA HERING - 1.258,00 BRL 41,990 19.567,85 0,06 0,06

CYRELA BRAZIL REALTY SA - 4.108,00 BRL 17,890 27.224,35 0,08 0,08

GAFISA SA - 3.217,00 USD 4,650 11.346,37 0,03 0,03

LOJAS AMERICANAS SA -PREF- 3.573,00 BRL 18,330 24.261,19 0,07 0,07

LOJAS RENNER SA - 1.571,00 BRL 79,750 46.411,28 0,13 0,13

MRV ENGENHARIA E PARTICIPACOES SA - 1.800,00 BRL 11,980 7.988,15 0,02 0,02

PDG REALTY SA EMPREENDIMENTOS - 13.115,00 BRL 3,310 16.081,00 0,05 0,05

Canada

CANADIAN TIRE CORP "A" NON VOTING 577,00 CAD 69,380 30.496,12 0,09 0,09

MAGNA INTERNATIONAL CLASS A - 13.358,00 CAD 49,680 505.542,35 1,44 1,44

SHAW COMMUNICATIONS INC "B" 2.840,00 CAD 22,840 49.413,88 0,14 0,14

Cayman Islands

GARMIN LTD - 973,00 USD 40,820 30.125,80 0,09 0,09

China

BYD CO LTD - 5.500,00 HKD 23,250 12.513,82 0,04 0,04

DAPHNE INTERNATIONAL HOLDINGS - 10.000,00 HKD 10,620 10.392,71 0,03 0,03

DONGFENG MOTOR CORP - 54.609,00 HKD 11,960 63.914,55 0,18 0,18

GOLDEN EAGLE RETAIL GROUP LTD - 7.000,00 HKD 19,080 13.070,16 0,04 0,04

GOME ELECTRICAL APPLIANCES HLD - 161.000,00 HKD 0,920 14.494,99 0,04 0,04

GREAT WALL MOTOR CO LTD - 32.000,00 HKD 24,450 76.565,51 0,22 0,22

GUANGZHOU AUTOMOBILE GROUP CORP - 18.000,00 HKD 6,870 12.101,34 0,03 0,04

LULULEMON ATHLETICA INC - 2.978,00 USD 76,230 172.188,21 0,49 0,49

Denmark

PANDORA A/S - 747,00 DKK 124,500 12.465,02 0,04 0,04

Finland

NOKIAN RENKAAT OYJ - 927,00 EUR 30,100 27.902,70 0,08 0,08

SANOMAWSOY OYJ - 1.615,00 EUR 7,435 12.007,53 0,03 0,03

France

ACCOR - 2.145,00 EUR 26,695 57.260,78 0,16 0,16

CHRISTIAN DIOR - 920,00 EUR 128,250 117.990,00 0,34 0,34

EUTELSAT - 1.242,00 EUR 25,100 31.174,20 0,09 0,09

JC DECAUX SA - 652,00 EUR 17,985 11.726,22 0,03 0,03

LAGARDERE S.C.A. - 740,00 EUR 25,285 18.710,90 0,05 0,05

LVMH-MOET H.L.VUIT. - 2.319,00 EUR 138,800 321.877,20 0,92 0,92

MICHELIN (PAR) 1.329,00 EUR 71,590 95.143,11 0,27 0,27

M6 - METROPOLE TELEVISION (PAR) 1.244,00 EUR 11,815 14.697,86 0,04 0,04

PINAULT-PRINTEMPS-REDOUTE - 2.918,00 EUR 140,850 411.000,30 1,17 1,17

PUBLICIS GROUPE SA - 10.259,00 EUR 45,250 464.219,75 1,32 1,33

RENAULT (PAR) 5.140,00 EUR 40,685 209.120,90 0,60 0,60

SODEXHO ALLIANCE - 684,00 EUR 63,720 43.584,48 0,12 0,12

TELEVISION FRANCAISE (TF1) (PAR) 3.114,00 EUR 8,850 27.558,90 0,08 0,08

Germany

ADIDAS AG - 1.710,00 EUR 67,330 115.134,30 0,33 0,33

BAYERISCHE MOTOREN WERKE AG (FRA)(PREF) 4.425,00 EUR 48,755 215.740,88 0,61 0,62

BAYERISCHE MOTOREN WERKE AG - 2.993,00 EUR 72,930 218.279,49 0,62 0,62

CONTINENTAL AG - 1.445,00 EUR 87,590 126.567,55 0,36 0,36

DAIMLER AG - 9.299,00 EUR 41,320 384.234,68 1,09 1,10

KABEL DEUTSCHLAND HOLDING AG - 1.766,00 EUR 56,570 99.902,62 0,28 0,29

VOLKSWAGEN AG PREF 2.983,00 EUR 172,150 513.523,45 1,46 1,47

Greece

GREEK ORG OF FOOTBALL PROGNOSTICS - 12.066,00 EUR 5,400 65.156,40 0,19 0,19

Hong Kong

BELLE INTERNATIONAL HOLDINGS - 77.895,00 HKD 16,820 128.215,32 0,37 0,37

BRILIANCE CHINA AUTOMOTIVE - 40.000,00 HKD 9,540 37.343,30 0,11 0,11

CHINA RESOURCES ENTERPRISE - 1.142,00 HKD 27,950 3.123,58 0,01 0,01

GALAXY ENTERTAINMENT GROUP LTD - 15.000,00 HKD 30,350 44.550,68 0,13 0,13

HAIER ELECTRONICS GROUP CO LTD - 18.000,00 HKD 11,340 19.975,14 0,06 0,06

LI & FUNG LTD - 63.473,00 HKD 13,680 84.972,71 0,24 0,24

SANDS CHINA LTD - 45.253,00 HKD 33,950 150.345,87 0,43 0,43

SHANGRI-LA ASIA LTD - 22.089,00 HKD 15,440 33.375,49 0,10 0,10

SJM HOLDINGS LTD - 24.000,00 HKD 18,000 42.275,44 0,12 0,12

TELEVISION BROADCASTS LTD - 849,00 HKD 57,900 4.810,50 0,01 0,01

WYNN MACAU LTD - 18.528,00 HKD 20,950 37.985,42 0,11 0,11

India

BAJAJ AUTO LTD. - 190,00 INR 2.131,150 5.605,56 0,02 0,02

MAHINDRA & MAHINDRA GDR 2.188,00 USD 16,710 27.731,71 0,08 0,08

TATA ENGIN. & LOCOMOTIVE P.N. 27/09/04 5.171,00 INR 312,650 22.381,24 0,06 0,06

ZEE LEARN LTD - 1.581,00 INR 30,150 659,89 0,00 0,00

ZEE TELEFILMS LTD - 6.336,00 INR 220,700 19.358,36 0,06 0,06

Indonesia

PT ASTRA INTL REG 179.983,00 IDR 7.600,000 107.654,65 0,31 0,31

Italy

AUTOGRILL SPA (MIL) 4.418,00 EUR 8,685 38.370,33 0,11 0,11

FIAT SPA - 20.544,00 EUR 3,790 77.861,76 0,22 0,22

MEDIASET - 7.260,00 EUR 1,556 11.296,56 0,03 0,03

Japan

AEON CO LTD. - 2.138,00 JPY 987,000 18.510,58 0,05 0,05

AISIN SEIKI CO - 1.351,00 JPY 2.664,000 31.570,74 0,09 0,09

BENESSE - 732,00 JPY 3.590,000 23.051,58 0,07 0,07

BRIDGESTONE CORP - 5.615,00 JPY 2.224,000 109.541,75 0,31 0,31

CANON MARKETING JAPAN INC - 96,00 JPY 1.235,000 1.040,00 0,00 0,00

CASIO COMPUTER CO LTD - 2.800,00 JPY 753,000 18.494,74 0,05 0,05

DAIHATSU MOTOR CO LTD - 4.164,00 JPY 1.711,000 62.496,53 0,18 0,18

DENSO CORP. - 4.182,00 JPY 2.973,000 109.062,16 0,31 0,31

FAMILYMART CY - 80,00 JPY 3.555,000 2.494,74 0,01 0,01

FAST RETAILING CO LTD. - 586,00 JPY 21.840,000 112.265,26 0,32 0,32

FUJI HEAVY IND. - 6.194,00 JPY 1.076,000 58.462,67 0,17 0,17

FUJITELEVISION NETWORK - 22,00 JPY 130.100,000 25.107,02 0,07 0,07

HAKUHODO DY HOLDINGS INC - 335,00 JPY 5.570,000 16.367,98 0,05 0,05

HONDA MOTOR CO - 14.638,00 JPY 3.145,000 403.829,04 1,15 1,15

ISETAN MITSUKOSHI HOLDINGS LTD - 18.335,00 JPY 842,000 135.421,67 0,39 0,39

ISUZU MOTORS LTD - 11.160,00 JPY 511,000 50.024,21 0,14 0,14

J. FRONT RETAILING CO LTD - 29.528,00 JPY 477,000 123.551,37 0,35 0,35

LAWSON INC - 63,00 JPY 5.870,000 3.243,95 0,01 0,01

MARUI CY - 20.597,00 JPY 687,000 124.124,03 0,35 0,35

MAZDA MOTOR CORP. - 115.457,00 JPY 174,000 176.223,84 0,50 0,50

NAMCO BANDAI HOLDING INC - 14.558,00 JPY 1.117,000 142.642,86 0,41 0,41

NGK SPARK PLUG CO LTD - 2.238,00 JPY 1.140,000 22.380,00 0,06 0,06

NIKON - 3.232,00 JPY 2.526,000 71.614,32 0,20 0,20

NISSAN MOTOR - 84.388,00 JPY 811,000 600.339,19 1,71 1,71

ORIENTAL LAND COMPANY,LTD - 305,00 JPY 10.470,000 28.011,84 0,08 0,08

PANASONIC CORPORATION - 58.176,00 JPY 522,000 266.384,84 0,76 0,76

SEGA SAMMY HOLDINGS INC - 2.738,00 JPY 1.455,000 34.945,53 0,10 0,10

SEKISUI CHEMICAL - 22.000,00 JPY 749,000 144.543,86 0,41 0,41

SEKISUI HOUSE LTD - 33.865,00 JPY 942,000 279.831,84 0,80 0,80

SHIMAMURA CO LTD - 271,00 JPY 8.380,000 19.920,88 0,06 0,06

SONY CORP - 8.748,00 JPY 958,000 73.513,89 0,21 0,21

SUMITOMO RUBBER IND. - 9.113,00 JPY 1.035,000 82.736,45 0,24 0,24

SUZUKI MOTOR CORP. - 2.996,00 JPY 2.242,000 58.921,33 0,17 0,17

TOKYO BROADC. SYSTEM - 12,00 JPY 904,000 95,16

TOYODA GOSEI CO LTD - 600,00 JPY 1.739,000 9.152,63 0,03 0,03

TOYOTA INDUSTRIES CORP. - 10.261,00 JPY 2.731,000 245.813,96 0,70 0,70

TOYOTA MOTOR_CREDIT - 51.616,00 JPY 4.005,000 1.813.351,58 5,16 5,18

YAMADA DENKI - 1.500,00 JPY 3.325,000 43.750,00 0,12 0,13

YAMAHA CORPORATION - 2.300,00 JPY 908,000 18.319,30 0,05 0,05

Malaysia

GENTING BERHAD - 19.464,00 MYR 9,200 44.415,21 0,13 0,13

GENTING MALAYSIA BHD - 30.422,00 MYR 3,550 26.787,24 0,08 0,08

UNITED MOTOR WORKS HLDG - 8.100,00 MYR 11,940 23.988,39 0,07 0,07

Mexico

GRUPO ELEKTRA S.A. DE C.V. CPO 661,00 MXN 550,300 21.245,99 0,06 0,06

GRUPO TELEVISA S.A. -CPO- 19.037,00 MXN 68,250 75.888,70 0,22 0,22

URBI DESARROLLOS URBANOS - 14.800,00 MXN 8,090 6.993,36 0,02 0,02

Netherlands

REED ELSEVIER NV - 20.991,00 EUR 11,185 234.784,34 0,67 0,67

New Zealand

SKYCITY ENTERTAINMENT GROUP - 6.801,00 NZD 3,780 16.086,47 0,05 0,05

Philippines

JOLLIBEE FOODS - 8.926,00 PHP 102,000 16.817,62 0,05 0,05

Singapore

GENTING SIGNAPORE PLC - 47.504,00 SGD 1,385 40.852,56 0,12 0,12

JARDINE CYCLE AND CARRIAGE LTD - 860,00 SGD 48,150 25.711,89 0,07 0,07

SINGAPORE PRESS HOLDING - 26.075,00 SGD 4,030 65.248,21 0,19 0,19

South Africa

IMPERIAL HOLDINGS LTD - 1.660,00 ZAR 198,780 29.499,44 0,08 0,08

MR PRICE GROUP LTD - 1.296,00 ZAR 140,000 16.220,57 0,05 0,05

NASPERS LTD N 3.125,00 ZAR 543,200 151.754,90 0,43 0,43

STEINHOFF INTL HOLD LTD - 10.537,00 ZAR 27,430 25.839,00 0,07 0,07

THE FOSCHINI GROUP THE FOSCHINI GROUP LTD 2.202,00 ZAR 140,750 27.707,58 0,08 0,08

TRUWORTHS INTERNATIONAL LTD - 3.456,00 ZAR 108,670 33.575,03 0,10 0,10

WOOLWORTHS HOLDINGS LTD - 6.249,00 ZAR 71,000 39.664,49 0,11 0,11

South Korea

HANKOOK TIRE WORLDWIDE CO LTD - 791,00 KRW 47.000,000 26.339,58 0,08 0,08

HANKOOK TIRE WORLDWIDE CO LTD - 181,00 KRW 19.800,000 2.539,09 0,01 0,01

HYUNDAI DEPARTMENT STORE CO LTD - 238,00 KRW 159.000,000 26.810,73 0,08 0,08

HYUNDAI MOBIS - 667,00 KRW 288.000,000 136.098,34 0,39 0,39

HYUNDAI MOTOR - 510,00 KRW 75.600,000 27.316,59 0,08 0,08

HYUNDAI MOTOR - 2.253,00 KRW 218.500,000 348.776,44 0,99 1,00

HYUNDAI WIA CORP - 204,00 KRW 173.000,000 25.004,07 0,07 0,07

KANGWON LAND INC - 1.509,00 KRW 29.250,000 31.271,56 0,09 0,09

KIA MOTORS CORP. - 4.661,00 KRW 56.500,000 186.578,70 0,53 0,53

LG ELECTRONICS INC NEW 849,00 KRW 73.600,000 44.271,07 0,13 0,13

LOTTE SHOPPING CO LTD - 105,00 KRW 377.000,000 28.045,63 0,08 0,08

MANDO CORP - 143,00 KRW 128.500,000 13.018,88 0,04 0,04

SHINSEGAE CO LTD - 122,00 KRW 218.500,000 18.886,25 0,05 0,05

Spain

INDUSTRIA DE DISENO TEXTIL SA - 1.550,00 EUR 105,500 163.525,00 0,47 0,47

Sweden

AUTOLIV INC - 922,00 USD 67,390 47.128,02 0,13 0,14

CDON GROUP AB - 180,00 SEK 40,000 839,47 0,00 0,00

ELECTROLUX "B" 1.853,00 SEK 170,500 36.836,17 0,11 0,11

HENNES&MAURITZ "B" 6.932,00 SEK 224,500 181.446,93 0,52 0,52

MODERN TIMES GROUP MTG AB "B" 436,00 SEK 226,600 11.519,17 0,03 0,03

Switzerland

COMPAGNIE FINANCIERE RICHEMONT "A" 9.371,00 CHF 71,400 554.432,71 1,58 1,58

THE SWATCH GROUP AG - 282,00 CHF 461,200 107.771,30 0,31 0,31

THE SWATCH GROUP AG REG 1.374,00 CHF 78,750 89.660,67 0,26 0,26

Taiwan

CHENG SHIN RUBBER IND CO LTD - 36.622,00 TWD 75,400 72.124,82 0,21 0,21

FAR EAST DEPARTMENT STORES - 8.777,00 TWD 30,150 6.912,02 0,02 0,02

FORMOSA INTERNATIONAL HOTELS CORP - 1.540,00 TWD 389,500 15.667,49 0,05 0,05

NAN KANG RUBBER TIRE CO LTD - 14.749,00 TWD 35,450 13.656,84 0,04 0,04

POU CHEN CORP. - 28.004,00 TWD 30,500 22.309,57 0,06 0,06

RUENTEX INDUSTRIES LTD - 5.730,00 TWD 72,000 10.776,02 0,03 0,03

YULON MOTOR CO LTD - 14.415,00 TWD 55,000 20.708,50 0,06 0,06

Thailand

BEC WORLD PUBLIC CO. LTD. - 13.325,00 THB 71,000 23.458,40 0,07 0,07

Turkey

ARCELIK AS - 3.212,00 TRY 11,700 15.971,27 0,05 0,05

U.K.

BRITISH SKY BROADCAST - 45.839,00 GBP 7,670 433.467,06 1,23 1,24

BURBERRY GROUP PLC - 4.968,00 GBP 12,260 75.092,69 0,21 0,21

COMPASS GROUP - 20.475,00 GBP 7,250 183.015,35 0,52 0,52

GKN "NEW" 14.377,00 GBP 2,288 40.555,51 0,12 0,12

HOME RETAIL GROUP - 3.904,00 GBP 1,267 6.098,35 0,02 0,02

INTERCONTINENTAL HOTELS GROUP PLC - 27.510,00 GBP 17,070 578.961,53 1,65 1,65

ITV PLC - 269.823,00 GBP 1,052 349.961,53 1,00 1,00

KINGFISHER PLC - 46.095,00 GBP 2,841 161.454,68 0,46 0,46

MARKS&SPENCER - 14.549,00 GBP 3,823 68.574,56 0,20 0,20

NEXT PLC - 9.031,00 GBP 37,090 412.969,78 1,18 1,18

PEARSON PLC - 11.785,00 GBP 11,880 172.612,25 0,49 0,49

REED ELSEVIER PLC - 15.635,00 GBP 6,420 123.753,79 0,35 0,35

WHITBREAD HOLDINGS PLC - 1.577,00 GBP 24,470 47.576,37 0,14 0,14

WPP GROUP PLC - 40.730,00 GBP 8,880 445.915,92 1,27 1,27

U.S.A.

ABERCROMBIE & FITCH - 921,00 USD 47,970 33.510,60 0,10 0,10

ADVANCE AUTO PARTS INC - 1.499,00 USD 72,350 82.260,81 0,23 0,24

AMAZON COMM. INC. - 4.550,00 USD 251,140 866.722,54 2,47 2,47

AMC NETWORKS INC - 342,00 USD 49,500 12.840,56 0,04 0,04

AMERICAN EAGLE OUTFITTERS NEW 1.493,00 USD 20,510 23.226,21 0,07 0,07

APOLLO GROUP INC "A" 4.524,00 USD 20,920 71.785,56 0,20 0,21

AUTOZONE INC. - 1.057,00 USD 354,430 284.156,94 0,81 0,81

BED BATH & BEYOND - 3.414,00 USD 55,910 144.779,08 0,41 0,41

BEST BUY - 11.671,00 USD 11,850 104.900,90 0,30 0,30

BORGWARNER INC - 1.673,00 USD 71,620 90.883,09 0,26 0,26

CABLEVISION SYSTEMS "A" 17.139,00 USD 14,940 194.217,73 0,55 0,55

CBS CORP - 4.637,00 USD 38,050 133.827,25 0,38 0,38

CHARTER COMMUNICATIONS INC. - 1.110,00 USD 76,240 64.188,71 0,18 0,18

CHIPOTLE MEXICAN GRILL INC -A- 299,00 USD 297,460 67.460,97 0,19 0,19

COACH INC. - 7.710,00 USD 55,510 324.622,35 0,92 0,93

COMCAST CORP -A- 16.304,00 USD 37,380 462.259,95 1,32 1,32

COMCAST CORP SPECIAL "A" 27.056,00 USD 35,950 737.760,32 2,10 2,11

DARDEN RESTAURANTS - 880,00 USD 45,070 30.083,13 0,09 0,09

DEVRY INC - 633,00 USD 23,730 11.393,42 0,03 0,03

DIRECTV GROUP INC - 4.634,00 USD 50,160 176.305,70 0,50 0,50

DISCOVERY COMMUNICATIONS INC - 13.049,00 USD 58,500 579.009,78 1,65 1,65

DISCOVERY COMMUNICATIONS INC -A- 2.828,00 USD 63,480 136.166,14 0,39 0,39

DISH NETWORK CORP - 2.001,00 USD 36,400 55.246,06 0,16 0,16

DOLLAR GENERAL CORPORATION - 1.300,00 USD 44,090 43.474,67 0,12 0,12

DOLLAR TREE STORES INC. - 5.005,00 USD 40,560 153.976,64 0,44 0,44

DR HORTON INC - 25.743,00 USD 19,780 386.223,10 1,10 1,10

EXPEDIA INC. - 1.557,00 USD 61,450 72.571,03 0,21 0,21

FAMILY DOLLAR STORES - 817,00 USD 63,410 39.294,58 0,11 0,11

FORD MOTOR CY - 50.974,00 USD 12,950 500.692,73 1,42 1,43

FOSSIL INC - 635,00 USD 93,100 44.841,10 0,13 0,13

GAMESTOP CORPORATION - 2.813,00 USD 25,090 53.533,20 0,15 0,15

GAP INC - 19.167,00 USD 31,040 451.261,89 1,28 1,29

GEN.MOTORS - 5.511,00 USD 28,830 120.511,32 0,34 0,34

GENUINE PARTS - 1.117,00 USD 63,580 53.867,46 0,15 0,15

HARLEY DAVIDSON - 2.977,00 USD 48,840 110.282,68 0,31 0,32

HASBRO INC. - 996,00 USD 35,900 27.121,06 0,08 0,08

HOME DEPOT - 15.359,00 USD 61,850 720.535,61 2,05 2,06

INTERPUBLIC GROUP - 3.942,00 USD 11,020 32.949,67 0,09 0,09

JOHNSON CONTROLS - 1.669,00 USD 30,700 38.864,00 0,11 0,11

KOHL'S CORPORATION - 10.942,00 USD 42,980 356.710,53 1,02 1,02

LAS VEGAS SANDS CORP - 5.641,00 USD 46,160 197.503,46 0,56 0,56

LEGGETT & PLATT, INC. - 1.229,00 USD 27,220 25.374,23 0,07 0,07

LIBERTY GLOBAL INC -C- 837,00 USD 58,750 37.298,05 0,11 0,11

LIBERTY GLOBAL INC A 3.115,00 USD 62,990 148.827,25 0,42 0,43

LIBERTY INTERACTIVE CORP - 40.241,00 USD 19,680 600.684,83 1,71 1,72

LIBERTY VENTURES - 1.886,00 USD 67,760 96.932,16 0,28 0,28

LIMITED BRANDS - 4.242,00 USD 47,060 151.417,26 0,43 0,43

LOWE'S CIE - 19.606,00 USD 35,520 528.219,90 1,50 1,51

MACY'S INC - 4.544,00 USD 39,020 134.486,41 0,38 0,38

MARRIOTT INTERNATIONAL - 4.283,00 USD 37,270 121.076,62 0,34 0,35

MATTEL INC - 4.355,00 USD 36,620 120.964,88 0,34 0,35

MC DONALD'S CORP - 8.248,00 USD 88,210 551.847,75 1,57 1,58

MCGRAW-HILL INC. - 5.446,00 USD 54,670 225.828,90 0,64 0,65

MGM RESORTS INTERNATIONAL - 3.596,00 USD 11,640 31.748,67 0,09 0,09

MOHAWK INDUSTRIES INC - 606,00 USD 90,470 41.584,36 0,12 0,12

NEWELL RUBBERMAID,INC. - 1.408,00 USD 22,270 23.783,50 0,07 0,07

NIKE "B" 8.288,00 USD 51,600 324.378,64 0,92 0,93

NORDSTROM - 1.226,00 USD 53,500 49.750,46 0,14 0,14

O'REILLY AUTOMOTIVE INC. - 2.942,00 USD 89,420 199.540,08 0,57 0,57

OMNICOM GROUP - 2.088,00 USD 49,960 79.123,54 0,23 0,23

PENNEY - 3.327,00 USD 19,710 49.738,45 0,14 0,14

PETSMART INC - 818,00 USD 68,340 42.401,49 0,12 0,12

POLO RALPH LAUREN CORP - 1.417,00 USD 149,920 161.132,16 0,46 0,46

PRICELINE.COM INC. - 293,00 USD 621,200 138.054,92 0,39 0,39

ROSS STORES - 4.195,00 USD 54,150 172.299,19 0,49 0,49

ROYAL CARIBBEAN CRUISES LTD - 1.016,00 USD 34,000 26.201,46 0,08 0,08

SCRIPPS NETWORKS INTER-CL A - 4.373,00 USD 57,920 192.114,81 0,55 0,55

SIRIUS XM RADIO INC - 181.847,00 USD 2,890 398.617,89 1,13 1,14

STAPLES INC - 5.889,00 USD 11,400 50.921,27 0,15 0,15

STARBUCKS CORP - 4.913,00 USD 53,620 199.814,21 0,57 0,57

STARWOOD HOTELS & RESORTS - 1.306,00 USD 57,360 56.820,51 0,16 0,16

TARGET CORP - 7.209,00 USD 59,170 323.541,06 0,92 0,92

THE WASHINGTON POST CO B 95,00 USD 365,210 26.315,95 0,08 0,08

TIFFANY & CO - 885,00 USD 57,340 38.490,52 0,11 0,11

TIM HORTONS INC - 1.787,00 CAD 48,830 66.473,08 0,19 0,19

TIME WARNER CABLE INC - 2.406,00 USD 97,190 177.365,85 0,50 0,51

TIME WARNER INC - 17.438,00 USD 47,830 632.630,11 1,80 1,81

TJX COMPANIES INC. - 17.180,00 USD 42,450 553.163,68 1,57 1,58

TOLL BROTHERS - 16.173,00 USD 32,330 396.596,70 1,13 1,13

TRIPADVISOR INC - 515,00 USD 41,920 16.375,00 0,05 0,05

TRW AUTOMOTIVE HOLDINGS CORP - 851,00 USD 53,610 34.604,15 0,10 0,10

URBAN OUTFITTERS INC - 2.806,00 USD 39,360 83.771,36 0,24 0,24

VF CORP - 827,00 USD 150,970 94.699,78 0,27 0,27

VIACOM B 6.706,00 USD 52,740 268.260,35 0,76 0,77

WALT DISNEY - 13.589,00 USD 49,790 513.195,02 1,46 1,47

WHIRLPOOL CORPORATION - 636,00 USD 101,750 49.084,50 0,14 0,14

WYNDHAM WORLDWIDE CORP - 1.481,00 USD 53,210 59.772,46 0,17 0,17

WYNN RESORTS LTD - 5.439,00 USD 112,490 464.072,44 1,32 1,33

YUM! BRANDS INC - 3.494,00 USD 66,400 175.972,09 0,50 0,50

Total shares 35.159.863,23 100,00 100,37

TOTAL SECURITIES PORTFOLIO 35.159.863,23 100,00 100,37

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 348.250,04 EUR 1,000 348.250,04 0,99

TOTAL RECEIVED COLLATERAL 348.250,04 0,99

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 4.225,32 AUD 1,000 3.327,29 0,01

KBC GROUP CAD 467,64 CAD 1,000 356,24 0,00

KBC GROUP CHF 2.127,00 CHF 1,000 1.762,51 0,01

KBC GROUP DKK 465,97 DKK 1,000 62,45

KBC GROUP EURO -95.008,24 EUR 1,000 -95.008,24 -0,27

KBC GROUP GBP 358,35 GBP 1,000 441,81 0,00

KBC GROUP HKD 3,21 HKD 1,000 0,31

KBC GROUP JPY -196.275,00 JPY 1,000 -1.721,71 -0,01

KBC GROUP MXN 874,51 MXN 1,000 51,08

KBC GROUP NZD 788,06 NZD 1,000 493,12 0,00

KBC GROUP PLN 1.031,73 PLN 1,000 252,86 0,00

KBC GROUP SEK -1.351,98 SEK 1,000 -157,63

KBC GROUP SGD 1.192,10 SGD 1,000 740,20 0,00

KBC GROUP TRY 519,01 TRY 1,000 220,57 0,00

KBC GROUP USD 62.057,64 USD 1,000 47.070,42 0,13

KBC GROUP ZAR 9.822,38 ZAR 1,000 878,11 0,00

Total demand accounts -41.230,61 -0,12

TOTAL CASH AT BANK AND IN HAND -41.230,61 -0,12

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 25.009,85 EUR 1,000 25.009,85 0,07

Total receivables 25.009,85 0,07

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -348.250,04 EUR 1,000 -348.250,04 -0,99

KBC GROUP EUR PAYABLE -15.299,05 EUR 1,000 -15.299,05 -0,04

KBC GROUP USD PAYABLE -33.000,00 USD 1,000 -25.030,34 -0,07

Payables -388.579,43 -1,11

TOTAL RECEIVABLES AND PAYABLES -363.569,58 -1,04

OTHER

Interest receivable EUR 20.748,26 0,06

Accrued interest EUR 1.667,63 0,01

Expenses payable EUR -97.025,92 -0,28

TOTAL OTHER -74.610,03 -0,21

TOTAL NET ASSETS 35.028.703,05 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 1,76 2,27 1,55 1,27 Brazil 0,19 0,30 0,62 0,51 Canada 1,10 1,10 1,00 1,67 Switzerland 2,01 1,35 2,27 2,14 China 0,50 0,22 0,98 1,07 Cayman Islands 0,26 0,36 0,13 0,09 Germany 6,58 4,84 4,37 4,76 Denmark 0,10 0,07 0,02 0,04 Spain 0,37 0,57 0,56 0,47 Finland 0,32 0,47 0,17 0,11 France 6,57 5,81 4,32 5,19 U.K. 3,65 3,13 6,75 8,82 Greece 0,17 0,14 0,33 0,19 Hong Kong 1,42 0,05 1,27 1,67 India 0,36 0,69 0,23 0,22 Indonesia 0,58 0,63 0,58 0,31 Italy 1,63 1,08 0,50 0,36 Japan 14,95 15,23 16,24 15,82 South Korea 3,63 3,62 3,23 2,60 Luxembourg 0,00 0,18 0,00 0,00 Mexico 0,76 0,99 0,41 0,30 Malaysia 0,56 0,72 0,41 0,27 Netherlands 0,23 0,30 0,92 0,67 New Zealand 0,21 0,17 0,06 0,05 Philippines 0,00 0,17 0,08 0,05 Singapore 0,77 1,15 0,44 0,37 Sweden 1,86 1,67 1,20 0,79 Thailand 0,12 0,07 0,07 0,07 Turkey 0,07 0,10 0,06 0,05 Taiwan 1,07 1,12 0,43 0,46 U.S.A. 46,85 50,00 49,74 48,69 South Africa 1,35 1,43 1,06 0,92 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 0,42 0,24 0,11 0,10 Consum(cycl) 75,49 72,26 73,11 72,75 Cons.goods 21,84 24,72 24,99 24,10 Financials 0,07 0,02 0,01 0,01 Technology 1,69 1,86 1,39 2,57 Telecomm. 0,22 0,52 0,13 0,27 Utilities 0,00 0,00 0,02 0,00 Real est. 0,27 0,38 0,24 0,20 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 0,89 1,19 0,43 0,28 BRL 0,00 0,16 0,60 0,48 CAD 1,71 1,78 1,30 1,86 CHF 2,03 1,37 2,29 2,15 DKK 0,11 0,07 0,03 0,04 EUR 15,16 13,24 10,27 11,52 GBP 3,69 3,18 6,84 8,83 HKD 1,99 0,05 1,70 2,25 IDR 0,59 0,63 0,59 0,31 INR 0,09 0,40 0,14 0,14 JPY 15,06 15,23 16,41 15,84 KRW 3,66 3,61 3,26 2,61 MXN 0,77 1,01 0,41 0,30 MYR 0,57 0,72 0,41 0,27 NZD 0,22 0,20 0,07 0,05 PHP 0,00 0,17 0,08 0,05 SEK 1,10 1,03 1,04 0,66 SGD 0,79 1,25 0,45 0,38 THB 0,12 0,07 0,07 0,07 TRY 0,07 0,10 0,06 0,05 TWD 1,08 1,11 0,44 0,46 USD 48,94 51,96 52,04 50,47 ZAR 1,36 1,47 1,07 0,93 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND CONSUMER

DURABLES (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 78.248.937,88 28.844.492,15 107.093.430,02 Sales 48.361.866,23 43.999.837,37 92.361.703,60 Total 1 126.610.804,11 72.844.329,52 199.455.133,62 Subscriptions 80.809.536,06 32.343.082,54 113.152.618,60 Redemptions 51.100.595,80 47.263.803,79 98.364.399,59 Total 2 131.910.131,86 79.606.886,33 211.517.018,19 Monthly average of total assets

48.752.375,52 43.428.460,82 46.090.418,17

Turnover rate -10,87 % -15,57 % -26,17 %

1st half of year 2nd half of year YearPurchases 78.248.937,88 28.844.492,15 107.093.430,02 Sales 48.361.866,23 43.999.837,37 92.361.703,60 Total 1 126.610.804,11 72.844.329,52 199.455.133,62 Subscriptions 80.809.536,06 32.343.082,54 113.152.618,60 Redemptions 51.100.595,80 47.263.803,79 98.364.399,59 Total 2 131.910.131,86 79.606.886,33 211.517.018,19 Monthly average of total assets

40.452.883,62 41.731.297,83 43.381.832,00

Corrected turnover rate -13,10 % -16,20 % -27,80 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 348.250,04 348.250,04 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 237.986,99 351,41 131.915,95 349,00 178.468,49 1.389,41 179.857,90

2011 - 12 1.675.362,91 25.298,44 1.837.482,13 23.822,57 16.349,26 2.865,27 19.214,54

2012 - 12 26.464,98 45,93 28.861,38 722,87 13.952,87 2.188,34 16.141,21

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 61.398.817,42 85.941,07 33.597.779,62 81.801,42

2011 - 12 55.011.112,79 100.394,01 556.743.562,79 7.325.726,55

2012 - 12 8.705.513,54 14.076,42 9.333.611,46 213.373,89

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 51.101.359,21 284,33 256,64

2011 - 12 5.507.854,49 290,93 262,22

2012 - 12 5.592.754,19 351,16 316,71

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 37.947,43 794,00 37.153,43 37.153,43

2012 - 12 314.750,49 268.207,40 83.696,52 83.696,52

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 10.661.928,41 227.171,25

2012 - 12 104.406.328,96 89.134.070,61

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 10.816.876,89 291,14

2012 - 12 29.435.948,87 351,70

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0171890065 EUR 19.14% 15.85% 5.20% 0.0234 01/10/1999 -2.73%

DIV BE0171889059 EUR 19.21% 15.83% 5.19% 0.0233 01/10/1999 -2.73%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228539720 EUR 19.23% 25/11/2011 26.47%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 1.20 EUR net (1.60 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.657% Classic Shares Capitalization: 1.691% Institutional B Shares Capitalization: 1.634% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 15,422 9,482 61.49%

CSFBSAS 23,072 14,242 61.73%

DEUTSCHE 6,187 3,867 62.50%

EQ CSA MACQUARIE 13,017 8,136 62.50%

JP MORGAN 1,359 790 58.08%

MERRILL 6,869 4,252 61.90%

MORGAN STANLEY 7,277 4,253 58.44%

NOMURA 30,752 18,860 61.33%

UBSWDR 1,985 1,121 56.44%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 22.518,78 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

BYD CO LTD -H- HKD 5.499 23,250 12.511,55

CASIO COMPUTER CO JPY 2.799 753,000 18.488,13

CHINA RESOURCES ENTERPRISE HKD 1.141 27,950 3.120,84

CROWN LTD AUD 310 10,670 2.604,69

FAIRFAX MEDIA LTD AUD 1.241 0,510 498,39

FAST RETAILING CO LTD JPY 200 21840,000 38.315,79

GENTING SINGAPORE PLC SGD 47.503 1,385 40.851,70

GREAT WALL MOTOR CO LTD -H- HKD 31.999 24,450 76.563,12

GUANGZHOU AUTOMOBILE GROUP -H HKD 17.999 6,870 12.100,67

HAIER ELECTRONICS GROUP HKD 17.999 11,340 19.974,03

SHANGRI-LA ASIA HKD 22.088 15,440 33.373,98

SHAW COMMUNICATIONS INC -B- CAD 2.800 22,840 48.717,91

TELEVISION BROADCAST HKD 848 57,900 4.804,84

WYNN MACAU LTD HKD 6.000 20,950 12.300,98

Total 324.226,62

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FRANCE 2003 2,25% 25/07/2020 EUR 131.000 EUR 190.611,94

OAT FRANCE 2003 4% 25/04/14 EUR 146.000 EUR 157.638,10

Total 348.250,04 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Eastern Europe

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND EASTERN EUROPE

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 6 October 1995 Initial subscription price: 20000 BEF Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 1218.24 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies in Central and Eastern European countries where conditions are such as to ensure accelerated economic growth in the short or medium term.

RISK CONCENTRATION Shares of Central and Eastern Europe.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to CSOB Asset Management a.s., Radlicka 333/150 , 150 57 Praha 5, CZECH REPUBLIC..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Equities globally had a strong start at the beginning of the year. ECB introduced second round of long term refinancing operations (LTRO), Greece received new aid package and European stability mechanism fund (ESM) increased its capacity. Two rounds of LTROs reached altogether stunning 1 trillion EUR of liquidity provided by ECB. In the second quarter, worse macro data in Europe, China and US showed global slow-down may be sharper than previously expected. During summer, markets were expecting ECB to come up with some decisive action. In September, ECB governor Mario Draghi announced direct purchase program of government bonds on secondary markets. Credit risk premium on troubled countries began falling bringing relief to equity markets as well. Situation in US has been overall improving during the year despite some short term swings. Potential problems were smoothed out by FED. FED expressed its will to keep record low rates until 2015 and has launched a new round of quantitative easing (3rd one already). FED expects to hold very loose monetary policy as long as unemployment remains above 6.5 % or until inflation picks up above 2.5 %. It was welcomed by investors.

Looking at the region, the winner and best performing market was Turkish. Turkey seemed to decouple from the overall risk-off/on changes in global sentiment. Turkish GDP grew healthy in the range of 3 - 4 % dispelling worries over hard landing. Current account deficit, long term concern, was steadily easing from previous year highs. On top of that, Fitch upgraded Turkish credit rating to investment grade in November bringing fresh capital into the market as a consequence. The Turkish market increased by 58 % in eur terms (local index). We started the year with cautious approach towards Turkish assets given the risk of abrupt capital outflows in the case of deteriorating situation in Europe. However, lower commodity prices and surprisingly (for us) successful monetary policy made us to change our view towards Turkey. From the second quarter on, we increased our exposure to Turkey with positive effects on the fund performance. Surprisingly the Russian stock market did not perform as well as expected given the strong economic growth and high average oil prices. The Russian index lagged not only behind western markets but also EM peers. International investors were held back given a series of long term negative factors such as high corruption and poor corporate governance as well as strong national protests against Putin’s establishment. Our exposure to Russia was swinging mirroring Turkish allocation. After FED announced third round of quantitative easing, we started to favour Russian equities together with Turkish in the expense of Central European region. Central European (CE) markets followed global trend also with positive returns for investors in 2012. Despite Czech and Hungarian economy fell into recession once again, equity market increased by 15.5 %, resp. 15.9 % (local indices, in EUR). However, best market was Polish, which increased by 31.9 % in EUR terms (local index, WIG20) supported by start of a monetary easing cycle and above average growing economy. Either due to weak economy, relatively rich valuations or political uncertainties we were underweighting Central European equities for most of the year. KBC Equity Fund Eastern Europe increased by 26.9 % in 2012, beating MSCI Emerging Europe by 4.2 % mainly thanks to higher exposure to Turkey and good stock picking in major markets.

2.1.8 FUTURE POLICY Necessary structural changes have not been made in Euro zone and we think debt concerns may hang over the markets again during this year. However, we expect loose monetary conditions in major economies to prevail, which should be favourable for global equities and emerging markets specifically. Situation in US is slowly improving and we think it will keep so. Political talks about debt stock level and its limitation may cause some short term concerns, but politicians don’t have much to choose from. Spending cuts and higher taxes will be, most likely, put off to better times. In Asia, China seems to succeed in supporting its economy and to get back on soft landing track. Therefore, we keep mildly bullish scenario for global equities and emerging markets. Within Central and Eastern European region, we favour Turkish and Russian companies in the expense of Central Europe. We see Russia and Turkey as growing countries with improving fundamentals or soft landing paths, while Central Europe is either in recession or faces sharp slow-down with relatively rich valuation.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 57.048.893,24 57.632.538,47

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 11.235.115,50 3.491.199,43 C. Shares and similar instruments a) Shares 57.133.147,75 57.754.483,92 Of which securities lent 9.801.404,37 2.795.148,78 E. Open-end undertakings for collective investment 0,57 0,62

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 126.592,63 28.405,24 B. Payables a) Accounts payable (-) -229.599,55 -145.605,25 c) Borrowings (-) -52.018,98 -131.663,32 d) Collateral (-) -11.235.115,50 -3.491.199,43

V. Deposits and cash at bank and in hand A. Demand balances at banks 132.693,87 158.756,38

VI. Accruals and deferrals A. Expense to be carried forward 1.515,69 B. Accrued income 151,69 60.765,76 C. Accrued expense (-) -62.074,74 -94.120,57

TOTAL SHAREHOLDERS' EQUITY 57.048.893,24 57.632.538,47

A. Capital 37.282.886,36 51.695.382,82

B. Income equalization -32.500,76 -282.494,29

C. Profit(Loss) carried forward 5.762.426,62 30.327.744,30

D. Result for the period 14.036.081,02 -24.108.094,36

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 11.235.115,50 3.491.199,43

IX Financial instruments lent 9.801.404,37 2.795.148,78

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 12.543.472,44 -22.537.182,80 b) Closed-end undertakings for collective

investment 1.473,86 -3.111,84

D. Other securities -84,52 E. Open-end undertakings for collective investment -0,04 61.815,51 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 897.821,31 -2.506.384,06

II. Investment income and expenses A. Dividends 1.701.150,38 2.223.411,18 B. Interests a) Securities and money market instruments -10.479,48 80.512,67 b) Cash at bank and in hand and deposits 3.945,97 64.961,85 C. Interest on borrowings (-) -3.333,99 -3.068,00

III. Other income B. Other 210.064,87

IV. Operating expenses A. Investment transaction and delivery costs (-) -73.844,22 -222.843,55 B. Financial expenses (-) -841,46 -3.304,93 C. Custodian's fee (-) -45.367,39 -39.501,00 D. Manager's fee (-) a) Financial management Classic Shares -875.170,54 -1.224.399,16 b) Administration and accounting management -56.790,05 -85.624,44 E. Administrative expenses (-) -575,21 -8,79 F. Formation and organisation expenses (-) -4.627,70 -9.147,60 G. Remuneration, social security charges and

pension -4,20 -19,34

H. Services and sundry goods (-) -10.461,29 -18.698,53 J. Taxes Classic Shares -24.400,03 -42.504,67 K. Other expenses (-) -5.887,34 -52.977,21

Income and expenditure for the period Subtotal II + III + IV 593.313,45 876.853,35

V. Profit (loss) on ordinary activities before tax 14.036.081,02 -24.108.094,36

VII. Result for the period 14.036.081,02 -24.108.094,36

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 19.766.006,88 5.937.155,65 Profit (loss) brought forward from the previous

financial year 5.762.426,62 30.327.744,30

Profit for the period available for appropriation 14.036.081,02 -24.108.094,36 Income on the creation of shares (income on the

cancellation of shares) -32.500,76 -282.494,29

II. (Appropriations to) Deductions from capital -19.630.680,62

III. Profit (loss) to be carried forward 5.762.426,62

IV. (Dividends to be paid out) -135.326,26 -174.729,03

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND EASTERN EUROPE

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Closed-end funds

Listed closed-end investment funds

Luxembourg

RENAISSANCE AM GLOBAL FD RUSS EQUITY - 0,09 USD 8,370 0,57

U.S.A.

UKRAINE FUND - 2.000,00 USD 0,000 0,00

Total investment funds 0,57

Shares

Exchange-listed shares

Austria

ERSTE GROUP BANK AG - 17.000,00 EUR 24,025 408.425,00 0,72 0,72

Czech Republic

CEZ A.S. - 10.000,00 CZK 680,000 270.959,52 0,47 0,48

Hungary

GEDEON RICHTER - 7.000,00 HUF 36.210,000 870.372,91 1,52 1,53

MAGYAR OLAJ-ES GAZIPARI RT. - 11.500,00 HUF 17.755,000 701.128,01 1,23 1,23

OTP BANK RT. - 42.000,00 HUF 4.150,000 598.516,59 1,05 1,05

Netherlands

X5 RETAIL GROUP NV -GDR- 10.000,00 USD 17,850 135.391,38 0,24 0,24

Poland

ASSECO POLAND SA - 65.000,00 PLN 45,350 722.434,62 1,26 1,27

BANK PEKAO SA - 17.500,00 PLN 167,500 718.390,80 1,26 1,26

BRE - 3.000,00 PLN 326,000 239.688,26 0,42 0,42

KERNEL HOLDING SA - 20.000,00 PLN 66,750 327.181,82 0,57 0,57

KGHM POLSKA MIEDZ SA - 26.500,00 PLN 190,000 1.233.977,89 2,16 2,16

POLISH OIL & GAS - 600.000,00 PLN 5,210 766.120,14 1,34 1,34

POLSKI KONCERN NAFTOWY ORLEN SA - 120.000,00 PLN 49,500 1.455.775,31 2,55 2,55

POWOSZECHNA KASA OSZCZEDNOSCI BANK - 155.000,00 PLN 36,900 1.401.735,17 2,45 2,46

POWSZECHNY BANK KREDYTOWY SA - 25.000,00 PLN 437,000 2.677.499,20 4,69 4,69

SYNTHOS SA - 150.000,00 PLN 5,410 198.882,44 0,35 0,35

Russia

AFK SISTEMA - 31.000,00 USD 20,200 474.969,66 0,83 0,83

GAZPROM ADR NEW 610.000,00 USD 9,460 4.376.972,09 7,66 7,67

JSC MMC NORILSK NICKEL ADR NEW 70.000,00 USD 18,430 978.534,59 1,71 1,72

LUKOIL - 108.000,00 USD 66,150 5.418.841,02 9,49 9,50

MAGNIT OSJC - 70.000,00 USD 40,100 2.129.095,87 3,73 3,73

MECHEL OAO - ADR 15.000,00 USD 6,930 78.845,57 0,14 0,14

MOBILE TELESYSTEMS ADR 120.000,00 USD 18,650 1.697.512,14 2,97 2,98

NOVATEK OAO - 23.500,00 USD 119,800 2.135.391,38 3,74 3,74

OGK-5 OJSC - 13.179,00 USD 0,000 1,00

RENFIN LTD - 9.679,00 USD 75,000 550.610,59 0,96 0,97

ROSNEFT OIL COMPANY - 490.000,00 USD 8,910 3.311.513,96 5,80 5,81

ROSTELECOM SPON ADR NEW 23.000,00 USD 23,880 416.595,87 0,73 0,73

SBERBANK OF RUSSIA ADR 597.000,00 USD 12,300 5.569.705,70 9,75 9,76

SEVERSTAL - 65.000,00 USD 12,170 600.007,58 1,05 1,05

SURGUTNEFTEGAZ OIL ADR NEW 255.000,00 USD 8,800 1.702.063,11 2,98 2,98

TATNEFT - 55.000,00 USD 43,570 1.817.619,84 3,18 3,19

TGK-5 REG S - 5.437,00 USD 0,000 0,41

TMK OAO - 30.000,00 USD 15,310 348.376,82 0,61 0,61

URALKALI - 55.000,00 USD 38,210 1.594.015,47 2,79 2,79

VTB BANK OSJC-GDR-REG S/WI - 60.000,00 USD 3,460 157.463,59 0,28 0,28

Turkey

AKBANK T.A.S. - 190.000,00 TRY 8,800 710.582,24 1,24 1,25

ALARKO HOLDING - 140.000,00 TRY 5,120 304.632,38 0,53 0,53

BIZIM TOPTAN SATIS MAGAALARI - 15.000,00 TRY 27,800 177.220,57 0,31 0,31

EMLAK KONUT GAYRIMENKUL YATIRI - 630.000,00 TRY 3,120 835.359,12 1,46 1,46

ENKA INSAAT VE SANAYI AS - 70.000,00 TRY 5,300 157.671,06 0,28 0,28

EREGLI DEMIR VE CELIK FABRIK - 229.953,00 TRY 2,450 239.432,58 0,42 0,42

KOC HOLDING A.S. - 155.000,00 TRY 9,260 609.987,25 1,07 1,07

TAV HAVALIMANLARI HOLD - 40.000,00 TRY 9,120 155.036,12 0,27 0,27

TOFAS TURK OTOMOBIL FABRIKASI AS - 230.000,00 TRY 10,450 1.021.461,96 1,79 1,79

TUPRAS-TURKIYE PETROL RAF. A.S. - 30.000,00 TRY 51,500 656.608,58 1,15 1,15

TURK HAVA YOLLARI AO - 95.000,00 TRY 6,260 252.741,18 0,44 0,44

TURK SISE VE CAM FABRIKALARI AS - 310.848,00 TRY 2,950 389.715,94 0,68 0,68

TURK TELEKOMUNIKASYON AS - 110.000,00 TRY 6,920 323.501,91 0,57 0,57

TURKIYE GARANTI BANKASI A.S. - 570.000,00 TRY 9,260 2.243.178,92 3,93 3,93

TURKIYE HALK BANKASI - 160.000,00 TRY 17,500 1.189.970,25 2,08 2,09

TURKIYE IS BANKASI - 200.000,00 TRY 6,180 525.286,87 0,92 0,92

TURKIYE SINAI KALKINMA BANKASI AS - 314.284,00 TRY 2,290 305.869,26 0,54 0,54

YAPI VE KREDI BANKASI A.S. - 430.000,00 TRY 5,200 950.276,24 1,66 1,67

Total shares 57.133.147,75 100,00 100,15

TOTAL SECURITIES PORTFOLIO 57.133.148,32 100,00 100,15

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 11.235.115,50 EUR 1,000 11.235.115,50 19,70

TOTAL RECEIVED COLLATERAL 11.235.115,50 19,69

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CZK 69.703,43 CZK 1,000 2.777,47 0,01

KBC GROUP EURO -52.018,98 EUR 1,000 -52.018,98 -0,09

KBC GROUP GBP 1.312,36 GBP 1,000 1.618,00 0,00

KBC GROUP HUF 30.869,28 HUF 1,000 106,00

KBC GROUP NEW BULGAARSE LEVA 1,28 BGN 1,000 0,65

KBC GROUP PLN 444.039,15 PLN 1,000 108.825,12 0,19

KBC GROUP RON 2.847,55 RON 1,000 640,55 0,00

KBC GROUP TRY 6.876,60 TRY 1,000 2.922,48 0,01

KBC GROUP USD 20.835,47 USD 1,000 15.803,60 0,03

Total demand accounts 80.674,89 0,14

TOTAL CASH AT BANK AND IN HAND 80.674,89 0,14

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 126.592,63 EUR 1,000 126.592,63 0,22

Total receivables 126.592,63 0,22

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-11.235.115,50 EUR 1,000 -11.235.115,50 -19,69

KBC GROUP EUR PAYABLE -121.764,34 EUR 1,000 -121.764,34 -0,21

KBC GROUP PLN PAYABLE -440.000,00 PLN 1,000 -107.835,21 -0,19

Payables -11.464.715,05 -20,10

TOTAL RECEIVABLES AND PAYABLES -11.338.122,42 -19,87

OTHER

Interest receivable EUR 0,00

Accrued interest EUR 151,69

Expenses payable EUR -62.074,74 -0,11

TOTAL OTHER -61.923,05 -0,11

TOTAL NET ASSETS 57.048.893,24 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 0,00 0,00 0,00 0,71 Czech Republic 4,83 5,04 2,56 0,47 U.K. 0,39 0,00 0,00 0,00 Hungary 2,23 1,04 2,43 3,80 Poland 19,82 16,49 17,53 17,05 Russia 56,20 61,78 56,92 58,63 Turkey 16,53 15,65 20,56 19,34 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 52,37 48,65 46,64 49,20 Consum(cycl) 2,77 3,40 3,77 3,18 Cons.goods 2,68 3,56 4,94 4,27 Pharma 0,26 0,38 0,48 1,52 Financials 29,84 27,24 29,73 32,58 Technology 1,33 2,07 1,93 1,26 Telecomm. 4,86 8,92 8,05 5,10 Utilities 5,00 4,81 2,63 0,47 Real est. 0,16 0,00 0,77 1,46 Unit trusts 0,73 0,97 1,06 0,96 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CZK 4,97 5,06 2,58 0,48 EUR 6,38 -0,43 -0,44 0,63 HUF 2,27 1,05 2,45 3,80 PLN 19,99 16,53 17,62 17,06 RON 0,02 0,03 0,00 0,00 TRY 16,60 15,68 20,70 19,35 USD 49,77 62,08 57,09 58,68 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND EASTERN EUROPE

(IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 7.182.624,16 7.618.485,50 14.801.109,66 Sales 17.077.987,92 11.750.110,74 28.828.098,65 Total 1 24.260.612,08 19.368.596,24 43.629.208,31 Subscriptions 1.975.724,61 1.967.480,86 3.943.205,47 Redemptions 11.669.226,85 6.697.738,09 18.366.964,94 Total 2 13.644.951,46 8.665.218,95 22.310.170,41 Monthly average of total assets

58.972.324,09 56.013.997,57 57.487.023,22

Turnover rate 18,00 % 19,11 % 37,08 %

1st half of year 2nd half of year YearPurchases 7.182.624,16 7.618.485,50 14.801.109,66 Sales 17.077.987,92 11.750.110,74 28.828.098,65 Total 1 24.260.612,08 19.368.596,24 43.629.208,31 Subscriptions 1.975.724,61 1.967.480,86 3.943.205,47 Redemptions 11.669.226,85 6.697.738,09 18.366.964,94 Total 2 13.644.951,46 8.665.218,95 22.310.170,41 Monthly average of total assets

58.949.692,44 56.165.069,45 57.662.657,96

Corrected turnover rate 18,01 % 19,06 % 36,97 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 11.235.115,50 11.235.115,50 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 11.266,47 636,73 12.682,12 1.074,72 26.902,84 4.939,61 31.842,44

2011 - 12 40.772,04 15.833,26 31.753,15 8.605,10 35.921,73 12.167,76 48.089,49

2012 - 12 2.443,10 366,00 10.058,06 3.364,57 28.306,77 9.169,19 37.475,96

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 16.237.004,11 824.236,24 18.565.544,68 1.350.670,24

2011 - 12 65.059.035,36 22.454.295,10 46.472.148,28 11.138.134,24

2012 - 12 3.533.403,81 429.148,18 14.331.115,26 4.089.903,63

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 51.870.433,21 1.666,90 1.422,41

2011 - 12 57.632.538,47 1.245,17 1.060,49

2012 - 12 57.048.893,24 1.583,63 1.332,88

Institutional B Shares Change in number of shares in circulation: Nil Amounts received and paid by the UCI: Nil Net asset value: Nil

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0156153802 EUR 26.92% 6.43% -7.88% 11.65% 06/10/1995 6.96%

DIV BE0156154818 EUR 26.91% 6.41% -7.89% 11.64% 06/10/1995 6.95%

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

Institutional B Shares

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

Classic Shares The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Dividend on ex-dividend date 28/03/2013: 11.07 EUR net (14.76 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.806% Classic Shares Capitalization: 1.804% Institutional B Shares Capitalization: Not applicable * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 1,726 363 21.05%

CSFBSAS 4,674 2,231 47.73%

DEUTSCHE 3,888 932 23.96%

HSBC 11,495 2,739 23.83%

JP MORGAN 222 124 55.56%

MORGAN STANLEY 2,808 1,531 54.54%

NOMURA 862 465 53.97%

UBSWDR 348 187 53.85%

WOOD 8,147 1,834 22.51%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.6% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. CSOB Asset Management a.s. receives a fee from the management company of max. 1.6% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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.

Name Maximum management fee KBC Equity Fund-Eastern Europe-Classic Shares 1,60 KBC Equity Fund-Eastern Europe-Institutional B Shares 1,60

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to -2.649,71 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

BANK PEKAO SA PLN 17.499 167,500 718.349,75

GEDEON RICHTER HUF 1.999 36210,000 248.553,64

KGHM POLSKA MIEDZ SA PLN 26.499 190,000 1.233.931,33

MAGYAR OLAJ-ES (BUD) HUF 11.499 17755,000 701.067,05

OTP BANK RT. HUF 41.999 4150,000 598.502,34

POLISH OIL & GAS PLN 599.999 5,210 766.118,86

POLSKI KONCERN NAFTO PLN 119.999 49,500 1.455.763,18

POWSZECHNA KASA OSZC PLN 154.999 36,900 1.401.726,12

POWSZECHNY ZAKLAD UBEZPIECZEN SA PLN 24.999 437,000 2.677.392,10

Total 9.801.404,37

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 10.500.000 EUR 11.235.115,50

Total 11.235.115,50 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Growth by Innovation

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND GROWTH BY INNOVATION

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 28 May 1998 Initial subscription price: 20000 BEF Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 131.05 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in a global selection of shares issued by high-potential growth companies. In particular, this involves companies where the focus on research and development generates extra added value. To overcome any liquidity problems, the sub-fund may, be temporary and ancillary invest in other securities.

RISK CONCENTRATION Growth shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR The fund invests in a global selection of innovative companies, that is, companies whose investment in Research and Development is expected to drive future growth and returns. Equity markets moved considerably higher at the start of 2012. The Fed’s announcement that rates will remain low until at least late 2014, record results from Apple and positive US GDP growth numbers were the key support factors for equity markets. It was not all good news however, as major French banks were downgraded and concerns about the Greek ‘private’ debt restructuring continued to prevail. Into February and after a short pause, markets climbed higher again in the second half of the month. Regionally, the euro area markets strongly outperformed with investors becoming convinced that after two years of crisis, the region has succeeded in isolating the Greek question. The risks of severe damage to the European economy as a whole and for the financial sector in particular fell sharply. Towards the end of the first quarter, positive macroeconomic developments, especially in the US, the successful Greek debt restructuring and the liquidity injection by central banks drove equity markets modestly higher in March. Towards the end of the month, investors’ optimism was tempered by worries over the risks for a hard landing in China and the rise in government bond yields throughout the world. The beginning of the second quarter saw a global pullback on equity markets, prompted by a slowdown in Chinese growth to its lowest level since Q2 2009, poor EU and US economic data and confirmation that the UK and Spain had slide back into recession. The European debt crisis flared up again as yields surged on Spanish bonds, the Dutch government resigned and Presidential Election in France lead to much political uncertainty. Euro area concerns escalated in May as Greek exit fears rose after elections in the country produced a stalemate and the country was unable to form a government. Statements from various European officials alluding to the fact that an exit scenario had been discussed sent markets into a tailspin. Sentiment was further hit when periphery yields spiked after Spain partially nationalized Bankia, Spain’s second largest mortgage lender. As the end of the second quarter approached, equity markets surged on the final trading day of the June after unexpected policy responses from the EU Summit, involving an agreement to use the ESM to recapitalise banks directly and take steps towards banking union soothed market nerves and increased appetite for risk assets. Victory for the pro-EU/Bailout New Democrats in Greece also supported markets. Into the second half of the year main market developments for the quarter saw Central Banks around the world implementing a new round of monetary easing in July to avoid a slide into a fresh recession. The ECB cut each of its key rates by 25 bps, bringing the main refi rate to 0.75% - a record low and the deposit rate to 0%. Later in the month, Draghi’s comments that the “Euro is irreversible” and that the ECB will do whatever it takes to preserve the currency sparked a month-end rally in stocks globally. In the UK, the Bank of England implemented an additional GBP 50 billion of QE while in China, the PBOC cut deposit and lending rates to 3% and 6% respectively. The equity rally ran out of steam in August amid holiday season in Europe and the U.S, with little news or market developments to influence sentiment. In the US, unemployment figures continued to worsen. The Fed’s chief Bernanke hinted that the Fed was willing to provide additional policy stimulus in the near term in order to ‘promote a stronger economic recovery and sustained improvement in labour market conditions’. Overall data releases from China were weak with declining exports, industrial production and manufacturing figures. Global markets had a positive month towards quarter-end buoyed by the ECB decision to allow unlimited purchasing of short-dated bonds (under the Outright Monetary Transactions operation), of countries who have entered fiscal adjustment programmes. Following this, the German court’s decision to back the EU bailout and the announcement from the Fed that it was introducing QE3 boosted investor confidence and lead markets to rally. Into the final quarter of the year and main market developments saw consumer spending, confidence and housing indicators in the U.S remain largely positive, while in Europe the ECB left its main interest rate unchanged at 0.75%. Towards quarter-end the FOMC expanded QE in the US, by adding at additional $45 billion per month of open-ended Treasury security purchases, while the fiscal cliff has been averted by a last minute deal, but with no agreement on the debt ceiling it is likely that this issue will return in the near future. The EU approved the disbursement of the next tranche of Greek aid. The region’s stock markets were buoyed towards the end of the quarter as perceptions grew that the debt crisis had stabilized somewhat.

In terms of the performance of KBC Equity Fund Growth by Innovation, the first quarter was relatively robust. A rally started in early January and was sustained to quarter end, with the fund gaining over the period, slightly ahead of the broad market. The outperformance was mainly due to the industry group allocation within the fund, with positive contributions coming most notably from the overweight positions in the technology and automotive segment and the underweight position in telecommunication services and food, beverage & tobacco. Stock selection however weighted on performance slightly, with the positions in Halliburton, Ericsson and Bristol-Myers Squibb impacting performance negatively. The second quarter however was more volatile and the fund lagged against the broad market in each month. Industry group allocation was again the main contributor, albeit negatively this time for nearly exactly the same segments as in the first quarter of 2012. On a stock specific level, the overweight position in Nokia, Petrobras, Gazprom and Sony added to the underperformance of the fund against the broad market in the second quarter. While the fund performed positively in absolute terms over the third quarter, KBC Equity Fund Growth by Innovation lagged the broad market slightly during this period. Stock selection was the main driver of positive performance over the quarter. In particular, positions in the energy and pharmaceuticals group contributed positively to performance over the period. Within the energy sector, Petroleum Geo-Services was among the main positive contributors to performance, after the the oilfield surveyor reported that second quarter earnings would exceed expectations. On the negative side, the technology hardware and equipment group offset some of these gains, due to the fund’s overweight positions in such names as Canon and QLogic, which suffered declines in the period. During the fourth quarter, the fund fell in absolute terms, underperforming the broad market over the period. Industry group allocation was the main contributor to negative performance over the last quarter, with the overweight positions in the information technology sector impacting performance. This was however somewhat offset on the stock-picking side with the increase in the share price of Canon following the announcement that its year-end dividend would increase. While KBC Equity Fund Growth by Innovation performed positively in absolute terms over the year, it was overall a disappointing year for the fund in relative terms with the fund underperforming the broad market in 2012.

2.1.8 FUTURE POLICY While we expect global growth to be positive looking forward into 2013, developed markets are being highlighted as the point of weakness with only modest expansion expected. We expect positive, albeit modest growth in the US over the coming quarters, with the gradual upturn of the US housing market and a cautious decline in the rate of unemployment. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to contract in the first half of 2013, with no type of recovery expected until at least the second half of the year. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only be a short term solution in advance of the debt ceiling debate to follow in February. In the emerging markets, the scenario is different with economic growth expected to continue in 2013. The strongest growth dynamic is to be found in emerging Asia. While growth is expected to continue in China, as confirmed by sustained improvement in confidence indicators, it may be more modest than in previous years, as policy makers in China as well as the rest of Asia continue to focus on inflationary pressure. In line with the theme, KBC Equity Fund Growth by Innovation will continue to invest in a global selection of innovative companies, that is, companies whose investment in Research and Development is expected to drive future growth and returns.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 64.736.622,53 28.623.901,83

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 124.731,20 147.658,50 a} Collateral received in the form of bonds 1.080.412,29 294.116,53 C. Shares and similar instruments a) Shares 64.321.443,60 28.351.728,53 Of which securities lent 988.663,60 312.549,15 D. Other securities 2.285,30 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -1.260,48 477,21 m) Financial indices Futures and forward contracts (+/-) -787,49 621,83

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 25.042,91 126,17 b) Tax assets 2.496,24 4.500,00 c) Collateral 7.271,47 7.893,38 B. Payables a) Accounts payable (-) -34.323,28 -38.268,51 d) Collateral (-) -1.080.412,29 -294.116,53

V. Deposits and cash at bank and in hand A. Demand balances at banks 307.748,83 175.613,85

VI. Accruals and deferrals A. Expense to be carried forward 1.583,49 B. Accrued income 58.944,10 29.711,70 C. Accrued expense (-) -74.684,57 -60.029,62

TOTAL SHAREHOLDERS' EQUITY 64.736.622,53 28.623.901,83

A. Capital 44.064.707,45 12.194.286,25

B. Income equalization 16.747,42 -100.393,64

C. Profit(Loss) carried forward 16.427.868,94 20.858.516,64

D. Result for the period 4.227.298,72 -4.328.507,42

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 1.080.412,29 294.116,53

I.A.B Cash at bank and in hand/deposits 7.271,47 7.893,38

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 243.838,11 215.846,91

IX Financial instruments lent 988.663,60 312.549,15

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -22.927,30 167,20 C. Shares and similar instruments a) Shares 5.228.534,52 -4.808.375,59 D. Other securities 410,22 -409,60 F. Derivative financial instruments l) Financial indices Futures and forward contracts 18.651,00 621,83 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -1.737,69 477,21 b) Other foreign exchange positions and

transactions -1.354.666,14 450.176,95

II. Investment income and expenses A. Dividends 1.153.775,75 757.608,89 B. Interests a) Securities and money market instruments 40.733,88 26.709,64 b) Cash at bank and in hand and deposits 1.060,37 2.096,13 C. Interest on borrowings (-) -1.808,27 -2.304,91

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

220.655,46 9.469,31

B. Other 3.968,63

IV. Operating expenses A. Investment transaction and delivery costs (-) -134.686,15 -91.157,20 B. Financial expenses (-) -749,34 -1.862,85 C. Custodian's fee (-) -24.274,70 -39.006,15 D. Manager's fee (-) a) Financial management Classic Shares -90.396,35 -521.643,28 Institutional B Shares -687.745,25 -34.624,95 b) Administration and accounting management -56.165,72 -38.060,27 E. Administrative expenses (-) -9,05 F. Formation and organisation expenses (-) -4.005,70 -4.486,24 G. Remuneration, social security charges and

pension -4,24 -9,59

H. Services and sundry goods (-) -9.380,82 -8.831,44 J. Taxes Classic Shares -5.153,53 -18.775,15 Institutional B Shares -7.202,84 11.522,07 K. Other expenses (-) -35.609,39 -21.778,06

Income and expenditure for the period Subtotal II + III + IV 359.034,11 28.834,58

V. Profit (loss) on ordinary activities before tax 4.227.298,72 -4.328.507,42

VII. Result for the period 4.227.298,72 -4.328.507,42

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 20.671.915,08 16.429.615,58 Profit (loss) brought forward from the previous

financial year 16.427.868,94 20.858.516,64

Profit for the period available for appropriation 4.227.298,72 -4.328.507,42 Income on the creation of shares (income on the

cancellation of shares) 16.747,42 -100.393,64

II. (Appropriations to) Deductions from capital -20.667.998,07

III. Profit (loss) to be carried forward 16.427.868,94

IV. (Dividends to be paid out) -3.917,01 -1.746,64

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND GROWTH BY INNOVATION

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 209.000,00 EUR 59,680 124.731,20 0,19 0,19

Total bonds 124.731,20 0,19 0,19

Shares

Exchange-listed shares

Australia

COCHLEAR LTD - 8.558,00 AUD 79,100 533.063,86 0,83 0,82

Austria

EAG BETEILIGUNGS AG - 3.600,00 EUR 0,499 1.796,40 0,00 0,00

PANKL RACING SYSTEMS AG - 3.743,00 EUR 23,000 86.089,00 0,13 0,13

Belgium

FINANCIERE DE TUBIZE (BRU) 4.386,00 EUR 32,260 141.492,36 0,22 0,22

THROMBOGENICS NV - 9.408,00 EUR 42,050 395.606,40 0,61 0,61

Bermuda

COVIDIEN LTD - 9.035,00 USD 57,740 395.692,43 0,61 0,61

Brazil

PETROBRAS-PETROLEO BRASILEIRO S.A. ADR-PREF 33.432,00 USD 19,300 489.409,59 0,76 0,76

Canada

RESEARCH IN MOTION LTD. - 3.551,00 CAD 11,800 31.920,32 0,05 0,05

Cayman Islands

GARMIN LTD - 8.603,00 USD 40,820 266.364,12 0,41 0,41

TENCENT HOLDINGS - 1.400,00 HKD 249,000 34.113,93 0,05 0,05

China

BYD CO LTD - 35.500,00 HKD 23,250 80.771,04 0,13 0,13

CHINA HIGH SPEED TRANSMISSION EQUIP - 77.000,00 HKD 3,020 22.756,32 0,04 0,04

CHINA OILFIELD SERVICES LTD - 178.000,00 HKD 15,980 278.356,35 0,43 0,43

SHANDONG WEIGAO GP MEDICAL-H - 60.000,00 HKD 7,710 45.269,95 0,07 0,07

SOHU.COM INC. - 5.562,00 USD 47,340 199.715,63 0,31 0,31

Denmark

ROCKWOOL INTERNATIONAL A/S - 3.645,00 DKK 634,000 309.734,62 0,48 0,48

SIMCORP AIS - 2.171,00 DKK 1.264,000 367.798,42 0,57 0,57

WILLIAM DEMANT HOLDING - 3.202,00 DKK 483,900 207.672,94 0,32 0,32

Finland

NOKIA "A" 106.553,00 EUR 2,926 311.774,08 0,48 0,48

ORION OYJ "B" 10.319,00 EUR 22,180 228.875,42 0,36 0,35

VACON OYJ - 608,00 EUR 40,200 24.441,60 0,04 0,04

France

LEGRAND (PAR) 724,00 EUR 31,875 23.077,50 0,04 0,04

SANOFI - 12.062,00 EUR 71,390 861.106,18 1,34 1,33

SCHNEIDER ELECTRIC SA - 12.258,00 EUR 54,830 672.106,14 1,04 1,04

Germany

BAYERISCHE MOTOREN WERKE AG - 5.863,00 EUR 72,930 427.588,59 0,66 0,66

DAIMLER AG - 17.119,00 EUR 41,320 707.357,08 1,10 1,09

ELRINGKLINGER AG - 9.625,00 EUR 25,500 245.437,50 0,38 0,38

SAP AG - 14.903,00 EUR 60,690 904.463,07 1,40 1,40

SIEMENS AG REG 6.733,00 EUR 82,200 553.452,60 0,86 0,86

VOLKSWAGEN AG PREF 3.051,00 EUR 172,150 525.229,65 0,82 0,81

Hong Kong

CNOOC LTD - 271.000,00 HKD 16,780 445.005,72 0,69 0,69

LENOVO GROUP LTD - 462.000,00 HKD 7,020 317.382,84 0,49 0,49

India

LARSEN & TOUBRO LTD. GDR 7.256,00 USD 29,150 160.431,13 0,25 0,25

MAHINDRA & MAHINDRA GDR 27.534,00 USD 16,710 348.978,41 0,54 0,54

RELIANCE INDUSTRIES LTD SP GDR "144A" 15.181,00 USD 30,520 351.429,10 0,55 0,54

Israel

CHECK POINT SOFTWARE TECHNOLOGIES - 3.730,00 USD 47,640 134.782,46 0,21 0,21

Italy

DIASORIN SPA - 712,00 EUR 30,280 21.559,36 0,03 0,03

FIAT INDUSTRIAL SPA - 24.781,00 EUR 8,255 204.567,16 0,32 0,32

FIAT SPA - 23.189,00 EUR 3,790 87.886,31 0,14 0,14

Japan

ASTELLAS PHARMA INC - 7.500,00 JPY 3.875,000 254.934,21 0,40 0,39

CANON INC - 26.500,00 JPY 3.340,000 776.403,51 1,21 1,20

DENSO CORP. - 22.200,00 JPY 2.973,000 578.952,63 0,90 0,89

DISCO CORP - 10.100,00 JPY 4.475,000 396.469,30 0,62 0,61

HAMAMATSU PHOTONICS KK - 7.900,00 JPY 3.120,000 216.210,53 0,34 0,33

HONDA MOTOR CO - 29.000,00 JPY 3.145,000 800.043,86 1,24 1,24

INPEX CORP - 77,00 JPY 457.500,000 309.013,16 0,48 0,48

JAPAN PETROLEUM EXPLORATION CO - 1.000,00 JPY 3.020,000 26.491,23 0,04 0,04

KAO CORP - 2.200,00 JPY 2.249,000 43.401,75 0,07 0,07

MURATA MANUFACTURING CO - 4.700,00 JPY 5.050,000 208.201,75 0,32 0,32

NIKON - 21.100,00 JPY 2.526,000 467.531,58 0,73 0,72

NINTENDO CO - 1.600,00 JPY 9.170,000 128.701,75 0,20 0,20

OBIC CO LTD - 170,00 JPY 17.250,000 25.723,68 0,04 0,04

ONO PHARMACEUTICAL CO LTD - 2.500,00 JPY 4.405,000 96.600,88 0,15 0,15

ROHM CORP. - 3.400,00 JPY 2.799,000 83.478,95 0,13 0,13

SONY CORP - 31.100,00 JPY 958,000 261.349,12 0,41 0,40

TAKEDA PHARMACEUTICAL CO LTD - 17.000,00 JPY 3.855,000 574.868,42 0,89 0,89

TOKYO ELECTRON - 13.200,00 JPY 3.935,000 455.631,58 0,71 0,70

TOYO TANSO CO LTD - 1.100,00 JPY 1.762,000 17.001,75 0,03 0,03

TOYOTA MOTOR_CREDIT - 32.400,00 JPY 4.005,000 1.138.263,16 1,77 1,76

TREND MICRO INC - 12.100,00 JPY 2.593,000 275.221,93 0,43 0,43

USHIO INC - 2.000,00 JPY 942,000 16.526,32 0,03 0,03

Luxembourg

TENARIS SA - 11.676,00 EUR 15,580 181.912,08 0,28 0,28

New Zealand

FISHER & PAYKEL HEALTHCARE CORP. - 86.081,00 NZD 2,470 133.045,54 0,21 0,21

Norway

PETROLEUM GEO-SERVICES ASA - 37.763,00 NOK 95,350 490.746,07 0,76 0,76

STATOIL - 22.424,00 NOK 139,000 424.812,74 0,66 0,66

Russia

GAZPROM ADR NEW 81.254,00 USD 9,460 583.027,03 0,91 0,90

South Africa

SASOL LTD - 8.977,00 ZAR 362,800 291.159,83 0,45 0,45

South Korea

HYUNDAI MOBIS - 1.333,00 KRW 288.000,000 271.992,63 0,42 0,42

HYUNDAI MOTOR - 2.415,00 KRW 218.500,000 373.854,90 0,58 0,58

LG ELECTRONICS INC NEW 4.416,00 KRW 73.600,000 230.272,13 0,36 0,36

LS INDUSTRIAL SYSTEMS - 709,00 KRW 67.100,000 33.705,69 0,05 0,05

SAMSUNG ELECTRONICS - 1.474,00 KRW 1.522.000,000 1.589.449,15 2,47 2,46

Sweden

AUTOLIV INC - 4.262,00 USD 67,390 217.852,08 0,34 0,34

AXIS COMMUNICATIONS AB - 29.492,00 SEK 177,500 610.347,68 0,95 0,94

ERICSSON "B" 95.432,00 SEK 65,100 724.352,11 1,12 1,12

Switzerland

NOBEL BIOCARE HOLDING AG - 23.230,00 CHF 7,760 149.374,21 0,23 0,23

NOVARTIS AG ADR 1.316,00 USD 63,300 63.184,77 0,10 0,10

NOVARTIS AG REG 17.367,00 CHF 57,450 826.760,15 1,28 1,28

PHONAK HOLDING - 188,00 CHF 101,400 15.796,49 0,03 0,02

ROCHE HOLDING GENOTS 6.327,00 CHF 184,000 964.673,52 1,50 1,49

SYNGENTA (NOM) 959,00 CHF 366,600 291.323,67 0,45 0,45

THE SWATCH GROUP AG - 117,00 CHF 461,200 44.713,62 0,07 0,07

Taiwan

ADVANTECH CO LTD - 65.800,00 TWD 122,500 210.539,38 0,33 0,33

CATCHER TECHNOLOGY CO LTD - 58.000,00 TWD 144,000 218.153,32 0,34 0,34

DELTA ELECTRONIC INDUSTRIAL - 5.000,00 TWD 106,500 13.908,84 0,02 0,02

EVERLIGHT ELECTRONICS CO LTD - 13.000,00 TWD 38,100 12.937,18 0,02 0,02

HTC CORPORATION - 6.037,00 TWD 300,500 47.384,58 0,07 0,07

LARGAN PRECISION CO LTD - 3.000,00 TWD 778,000 60.963,82 0,10 0,09

MACRONIX INTL. - 180.608,00 TWD 8,670 40.900,39 0,06 0,06

MEDIATEK INCORPORATION - 15.031,00 TWD 323,500 127.008,71 0,20 0,20

MOTECH INDUSTRIES INC - 539,00 TWD 27,250 383,64 0,00 0,00

NOVATEK MICROELECTRONICS CORP - 106.000,00 TWD 117,500 325.323,23 0,51 0,50

PIXART IMAGING INC - 36.642,00 TWD 69,100 66.134,57 0,10 0,10

RICHTEK TECHNOLOGY CORP - 34.150,00 TWD 169,500 151.193,03 0,24 0,23

SIMPLO TECHNOLOGY CO LTD - 7.469,00 TWD 146,000 28.483,06 0,04 0,04

TAIWAN SEMICONDUCTOR - 183.000,00 TWD 97,000 463.654,17 0,72 0,72

U.K.

ARM HOLDG - 107.794,00 GBP 7,680 1.020.660,73 1,58 1,58

ASTRAZENECA PLC - 18.072,00 GBP 29,095 648.261,42 1,01 1,00

AVEVA GROUP PLC - 24.772,00 GBP 21,820 666.409,86 1,03 1,03

COBHAM - 6.162,00 GBP 2,208 16.774,38 0,03 0,03

GLAXOSMITHKLINE PLC - 45.494,00 GBP 13,350 748.791,64 1,16 1,16

MEGGITT PLC - 60.971,00 GBP 3,823 287.377,80 0,45 0,44

MICRO FOCUS INTERNATIONAL PLC - 70.256,00 GBP 5,820 504.117,77 0,78 0,78

OPPORTUNITY INV MANAGEMENT PLC - 7.350,00 EUR 0,460 3.381,00 0,01 0,01

SPIRENT COMMUNICATIONS PLC - 241.529,00 GBP 1,507 448.753,79 0,70 0,69

ULTRA ELECTRONICS HOLDINGS - 704,00 GBP 16,640 14.442,81 0,02 0,02

U.S.A.

ADOBE SYSTEMS - 20.356,00 USD 37,680 581.776,46 0,90 0,90

ADTRAN INC - 3.153,00 USD 19,540 46.730,60 0,07 0,07

ALKERMES INC - 35.834,00 USD 18,520 503.372,03 0,78 0,78

ALTERA CORP. - 17.227,00 USD 34,440 450.013,56 0,70 0,70

AMAZON COMM. INC. - 4.194,00 USD 251,140 798.908,65 1,24 1,23

AMETEK INC - 1.212,00 USD 37,570 34.537,96 0,05 0,05

AMGEN - 1.680,00 USD 86,320 109.995,15 0,17 0,17

ANALOG DEVICES, INC. - 14.647,00 USD 42,060 467.273,07 0,73 0,72

ANSYS INC - 2.098,00 USD 67,340 107.159,68 0,17 0,17

APPLE INC - 4.941,00 USD 533,030 1.997.649,60 3,11 3,09

BARD (C.R.) INC. - 1.726,00 USD 97,740 127.957,55 0,20 0,20

BAXTER INTL INC - 5.405,00 USD 66,660 273.283,75 0,42 0,42

BECTON DICKINSON - 425,00 USD 78,190 25.205,36 0,04 0,04

BIOGEN IDEC INC - 5.417,00 USD 146,670 602.633,03 0,94 0,93

BOEING - 14.897,00 USD 75,360 851.515,41 1,32 1,32

BRISTOL-MYERS SQUIBB CO - 25.111,00 USD 32,590 620.727,77 0,96 0,96

CELGENE CORPORATION - 4.492,00 USD 78,720 268.211,65 0,42 0,41

CERNER CORP - 3.845,00 USD 77,640 226.430,37 0,35 0,35

CISCO SYSTEMS INC - 58.594,00 USD 19,650 873.310,15 1,36 1,35

COMTECH TELECOMMUNICATIONS COR - 14.254,00 USD 25,380 274.398,15 0,43 0,42

CORNING INC - 28.927,00 USD 12,620 276.895,28 0,43 0,43

CUBIST PHARMACEUTICALS INC - 12.917,00 USD 42,060 412.082,08 0,64 0,64

DIGITAL RIVER INC - 5.521,00 USD 14,390 60.260,31 0,09 0,09

DOLBY LABORATORIES INC - 5.444,00 USD 29,330 121.110,83 0,19 0,19

DRIL-QUIP - 4.132,00 USD 73,050 228.946,15 0,36 0,35

DU PONT DE NEMOURS - 15.257,00 USD 44,970 520.409,05 0,81 0,80

EDWARDS LIFESCIENCES CORP. - 2.574,00 USD 90,170 176.044,89 0,27 0,27

ENDO HEALTH SOLUTIONS INC - 12.444,00 USD 26,270 247.955,01 0,39 0,38

FLIR SYSTEMS INC - 8.863,00 USD 22,310 149.979,92 0,23 0,23

FORD MOTOR CY - 63.065,00 USD 12,950 619.456,73 0,96 0,96

FOREST LABORATORIES "A" 3.639,00 USD 35,320 97.488,99 0,15 0,15

F5 NETWORKS INC - 5.184,00 USD 97,150 381.997,57 0,59 0,59

GENERAL ELEC CAP CORP - 74.261,00 USD 20,990 1.182.295,50 1,84 1,83

GOOGLE INC -A- 2.031,00 USD 709,370 1.092.787,07 1,70 1,69

HAEMONETICS CORP - 1.170,00 USD 40,840 36.243,02 0,06 0,06

HALLIBURTON CY - 24.142,00 USD 34,690 635.229,05 0,99 0,98

HASBRO INC. - 470,00 USD 35,900 12.798,09 0,02 0,02

HEWLETT PACKARD - 27.294,00 USD 14,250 295.008,72 0,46 0,46

I.B.M. - 6.617,00 USD 191,550 961.382,24 1,49 1,49

IDEXX LABORATORIES INC. - 788,00 USD 92,800 55.466,02 0,09 0,09

INTEL CORP - 60.732,00 USD 20,630 950.319,45 1,48 1,47

INTUIT INC - 3.946,00 USD 59,500 178.084,80 0,28 0,28

INTUITIVE SURGICAL INC - 1.821,00 USD 490,370 677.308,68 1,05 1,05

JOHNSON & JOHNSON - 18.425,00 USD 70,100 979.666,64 1,52 1,51

MASIMO CORP - 10.121,00 USD 21,010 161.288,08 0,25 0,25

MATTEL INC - 9.435,00 USD 36,620 262.067,43 0,41 0,41

MEDTRONIC INC - 29.330,00 USD 41,020 912.558,10 1,42 1,41

MERCK & CO - 24.885,00 USD 40,940 772.748,71 1,20 1,19

MERIDIAN BIOSCIENCE INC - 6.175,00 USD 20,250 94.845,08 0,15 0,15

MICROSOFT CORP - 45.254,00 USD 26,730 917.505,63 1,42 1,42

MONSANTO NEW 10.746,00 USD 94,650 771.472,16 1,20 1,19

NIKE "B" 8.484,00 USD 51,600 332.049,76 0,52 0,51

ORACLE CORP - 31.374,00 USD 33,320 792.916,93 1,23 1,23

PFIZER - 55.380,00 USD 25,080 1.053.496,97 1,64 1,63

POLARIS INDUSTRIES INC - 8.181,00 USD 84,150 522.171,69 0,81 0,81

PROCTER & GAMBLE - 14.057,00 USD 67,890 723.854,47 1,12 1,12

Q LOGIC - 29.928,00 USD 9,730 220.873,36 0,34 0,34

QUALCOMM CORP - 17.530,00 USD 62,020 824.643,96 1,28 1,27

QUALITY SUSTEMS INC - 1.172,00 USD 17,360 15.432,28 0,02 0,02

RED HAT INC - 11.403,00 USD 52,960 458.057,40 0,71 0,71

ROCKWELL COLLINS - 2.133,00 USD 58,170 94.111,51 0,15 0,15

ROPER INDUSTRIES INC - 441,00 USD 111,480 37.289,65 0,06 0,06

SCHLUMBERGER - 12.295,00 USD 69,290 646.177,60 1,00 1,00

ST JUDE MEDICAL INC. - 5.194,00 USD 36,140 142.378,00 0,22 0,22

STRYKER CORPORATION - 4.946,00 USD 54,820 205.658,16 0,32 0,32

SURMODICS INC - 10.596,00 USD 22,360 179.707,65 0,28 0,28

VALEANT PHARMACEUTICALS INTERN - 6.276,00 CAD 59,340 283.703,69 0,44 0,44

VARIAN MEDICAL SYSTEMS - 1.901,00 USD 70,240 101.279,00 0,16 0,16

XILINX INC. - 18.129,00 USD 35,900 493.652,23 0,77 0,76

ZIMMER HOLDINGS INC. - 1.203,00 USD 66,660 60.825,23 0,09 0,09

3M CO - 5.914,00 USD 92,850 416.500,99 0,65 0,64

Total shares 64.321.443,60 99,81 99,36

Options and futures

Exchange-listed futures

Belgium

EURO - STOXX 50 MAR 13 1,00 EUR 2.615,000 26.150,00 0,04 0,04

U.S.A.

STAND & POORS EMINI MAR 13 2,00 USD 1.420,000 107.706,31 0,17 0,17

Suspense accounts (futures)

Belgium

EURO - STOXX 50 MAR 13 -26.380,00 EUR 1,000 -26.380,00 -0,04 -0,04

U.S.A.

STAND & POORS MAR 13 -142.735,00 USD 1,000 -108.263,80 -0,17 -0,17

Total options and futures -787,49 0,00 0,00

Forward contracts EUR -1.260,48 0,00

TOTAL SECURITIES PORTFOLIO 64.444.126,83 100,00 99,55

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 1.080.412,29 EUR 1,000 1.080.412,29 1,67

TOTAL RECEIVED COLLATERAL 1.080.412,29 1,67

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 8.537,95 AUD 1,000 6.723,32 0,01

KBC GROUP CAD 7.856,40 CAD 1,000 5.984,92 0,01

KBC GROUP CHF 6.901,23 CHF 1,000 5.718,62 0,01

KBC GROUP DKK 61.032,01 DKK 1,000 8.180,14 0,01

KBC GROUP EURO 166.354,37 EUR 1,000 166.354,37 0,26

KBC GROUP GBP 8.044,06 GBP 1,000 9.917,47 0,02

KBC GROUP HKD 67.252,89 HKD 1,000 6.581,35 0,01

KBC GROUP JPY 466.865,00 JPY 1,000 4.095,31 0,01

KBC GROUP NOK 29.521,78 NOK 1,000 4.023,58 0,01

KBC GROUP NZD 12.092,17 NZD 1,000 7.566,59 0,01

KBC GROUP SEK 36.334,64 SEK 1,000 4.236,39 0,01

KBC GROUP USD 67.758,83 USD 1,000 51.394,74 0,08

KBC GROUP ZAR 81.681,67 ZAR 1,000 7.302,26 0,01

Total demand accounts 288.079,06 0,45

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 11.374,27 EUR 1,000 11.374,27 0,02

KBC GROUP USD FUT REK 10.936,79 USD 1,000 8.295,50 0,01

Total managed futures accounts 19.669,77 0,03

TOTAL CASH AT BANK AND IN HAND 307.748,83 0,48

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 25.042,91 EUR 1,000 25.042,91 0,04

KBC GROUP WHT TO BE RECOVERED EUR 2.496,24 EUR 1,000 2.496,24 0,00

Netherlands

KBC CLEARING NV DEKKING EUR 1.962,00 EUR 1,000 1.962,00 0,00

KBC CLEARING NV DEKKING USD 7.000,00 USD 1,000 5.309,47 0,01

Total receivables 34.810,62 0,05

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -1.080.412,29 EUR 1,000 -1.080.412,29 -1,67

KBC GROUP EUR PAYABLE -34.323,28 EUR 1,000 -34.323,28 -0,05

Payables -1.114.735,57 -1,72

TOTAL RECEIVABLES AND PAYABLES -1.079.924,95 -1,67

OTHER

Interest receivable EUR 56.730,88 0,09

Accrued interest EUR 2.213,22 0,00

Expenses payable EUR -74.684,57 -0,11

TOTAL OTHER -15.740,47 -0,02

TOTAL NET ASSETS 64.736.622,53 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 0,77 0,68 0,75 0,83 Austria 0,54 0,25 0,14 0,14 Belgium 1,25 1,20 0,93 0,83 Bermuda 0,45 0,50 0,58 0,61 Brazil 1,07 0,92 0,72 0,76 Canada 0,57 0,57 0,40 0,49 Switzerland 3,83 4,04 3,68 3,66 China 1,53 1,32 1,06 0,97 Cayman Islands 0,41 0,54 0,48 0,47 Germany 5,22 4,24 4,34 5,22 Denmark 1,27 1,29 1,34 1,37 Finland 1,20 1,06 0,61 0,88 France 2,42 2,05 2,10 2,41 U.K. 6,64 6,27 6,41 6,76 Hong Kong 0,97 0,96 1,13 1,18 India 1,63 1,30 1,25 1,34 Ireland 1,66 0,52 0,26 0,19 Israel 0,25 0,33 0,29 0,21 Italy 0,75 0,57 0,55 0,49 Japan 11,95 11,78 11,58 11,10 South Korea 2,82 3,16 3,20 3,88 Luxembourg 0,28 0,31 0,28 0,28 Norway 1,01 1,17 1,18 1,42 New Zealand 0,26 0,32 0,23 0,21 Russia 1,41 1,12 0,99 0,90 Sweden 2,67 2,35 2,25 2,41 Taiwan 3,13 2,99 2,91 2,74 U.S.A. 43,54 47,61 49,90 47,80 South Africa 0,50 0,58 0,46 0,45 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 20,11 18,59 17,65 17,77 Consum(cycl) 15,24 13,99 14,23 15,45 Cons.goods 0,93 0,87 1,14 1,24 Pharma 24,88 26,95 26,69 25,72 Financials 2,40 2,82 2,61 2,25 Technology 35,74 36,02 36,76 36,79 Telecomm. 0,18 0,20 0,15 0,07 Various 0,52 0,56 0,77 0,71 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 0,78 0,69 0,75 0,83 CAD 0,57 0,59 0,41 0,50 CHF 3,66 3,88 3,60 3,55 DKK 1,27 1,29 1,34 1,38 EUR 11,44 10,00 9,21 10,49 GBP 6,61 6,25 6,39 6,74 HKD 2,12 1,94 1,92 1,90 JPY 11,97 11,78 11,54 11,05 KRW 2,81 3,14 3,19 3,86 NOK 1,01 1,18 1,19 1,42 NZD 0,27 0,34 0,24 0,22 SEK 2,33 2,07 1,96 2,07 TWD 3,22 2,98 2,90 2,73 USD 51,39 53,28 54,89 52,80 ZAR 0,55 0,59 0,47 0,46 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND GROWTH BY

INNOVATION (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 32.935.343,90 29.061.136,92 61.996.480,82 Sales 13.114.372,49 16.907.922,80 30.022.295,30 Total 1 46.049.716,40 45.969.059,72 92.018.776,11 Subscriptions 37.672.371,51 38.965.412,37 76.637.783,88 Redemptions 17.846.812,57 26.847.393,99 44.694.206,56 Total 2 55.519.184,08 65.812.806,36 121.331.990,44 Monthly average of total assets

50.004.021,02 62.314.148,31 56.159.084,66

Turnover rate -18,94 % -31,84 % -52,20 %

1st half of year 2nd half of year YearPurchases 32.935.343,90 29.061.136,92 61.996.480,82 Sales 13.114.372,49 16.907.922,80 30.022.295,30 Total 1 46.049.716,40 45.969.059,72 92.018.776,11 Subscriptions 37.672.371,51 38.965.412,37 76.637.783,88 Redemptions 17.846.812,57 26.847.393,99 44.694.206,56 Total 2 55.519.184,08 65.812.806,36 121.331.990,44 Monthly average of total assets

51.283.334,34 62.972.031,74 56.965.319,92

Corrected turnover rate -18,46 % -31,51 % -51,46 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR EUR 1.080.412,29 1.080.412,29 N/A 31.12.2012

KBCCLEAR DEKKING EUR EUR 1.962,00 1.962,00 N/A 31.12.2012

KBCCLEAR DEKKING USD USD 7.000,00 5.309,47 N/A 31.12.2012

EUROSTOX 13/03/2013 EUR 26.150,00 26.150,00 10,00 18.12.2012

STPOORS EMINI MAR 13 USD 142.000,00 107.706,31 50,00 18.12.2012

KBC AK-VK USD-EUR 130313-121214 1.304299

USD 145.000,00 109.981,80 N/A 14.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 383.458,33 260,00 386.435,81 1.234,00 339.194,92 6.216,00 345.410,92

2011 - 12 219.768,66 741,00 527.389,29 719,00 31.574,29 6.238,00 37.812,29

2012 - 12 17.007,22 2.759,00 14.253,21 3.235,00 34.328,31 5.762,00 40.090,31

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 50.766.978,42 33.002,16 50.850.369,69 156.353,22

2011 - 12 31.927.807,25 102.410,47 72.523.661,60 98.591,28

2012 - 12 2.675.553,30 388.707,75 2.236.891,58 464.055,42

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 51.486.232,46 149,22 140,08

2011 - 12 5.356.925,14 143,12 134,32

2012 - 12 6.403.544,26 161,18 151,08

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 167.162,00 4.669,00 162.493,00 162.493,00

2012 - 12 468.049,45 269.015,25 361.527,20 361.527,20

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 22.712.001,00 653.789,05

2012 - 12 73.742.413,48 42.218.001,71

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 23.266.976,69 143,19

2012 - 12 58.333.078,27 161,35

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0167682666 EUR 11.46% 9.04% 0.32% 0.0849 28/05/1998 -7.48%

DIV BE0167681650 EUR 11.52% 9.06% 0.33% 0.0849 28/05/1998 -7.47%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228547806 EUR 11.52% 25/11/2011 19.67%

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. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 0.51 EUR net (0.68 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.66% Classic Shares Capitalization: 1.711% Institutional B Shares Capitalization: 1.639% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 27,928 16,930 60.62%

CSFBSAS 3,241 2,015 62.18%

DEUTSCHE 842 481 57.14%

EQ CSA MACQUARIE 593 370 62.50%

MERRILL 9,318 6,179 66.32%

MORGAN STANLEY 3,024 1,792 59.25%

NOMURA 14,738 9,017 61.18%

UBSWDR 2,608 1,630 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The Euro Stoxx 50 is a weighted equity index computed by Stoxx Ltd. The dividend is not reinvested. The main purpose of this index is to provide a continuous indication of market trends on the European stock markets. The base value of the index is 1000, calculated on the basis of the underlying prices recorded on 31 December 1991. The Euro Stoxx 50 consists solely of shares from countries participating in the Economic and Monetary Union, with the exception of Luxembourg. On 10 April 1998, the following stock exchanges were included in the index: Austria (Vienna), Belgium (Brussels), Finland (Helsinki), France (Paris), Germany (Frankfurt), Italy (Milan), Ireland (Dublin), the Netherlands (Amsterdam), Portugal (Lisbon) and Spain (Madrid). The index consists of the 50 largest European shares in terms of shares that are freely negotiable, and the shares are accordingly weighted on the basis of this criterion. The Euro Stoxx 50 is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Stoxx Limited has all proprietary rights with repect to the index. In no way Stoxx Limited endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Stoxx Limited disclaims any liability for the issue and offering of the shares of this undertaking for collective investment.

The S&P 500 is an equity index computed by Standard & Poor’s that is made up of 500 shares. The dividend is not reinvested. The S&P 500 serves primarily as a continuous indicator of market trends on the US stock markets. The value of the S&P 500 index is calculated on the basis of the market value of the shares of 500 companies at a given point in time, compared to the market value of the shares of 500 similar companies during the reference period from 1941 to 1943. The index is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Standard & Poor’s has all proprietary rights with repect to the index. In no way Standard & Poor’s endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Standard & Poor’s disclaims any liability for the issue and offering of the shares of this undertaking for collective investment The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 8.714,29 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

BYD CO LTD -H- HKD 35.499 23,250 80.768,76

DISCO CORP JPY 9.000 4475,000 353.289,47

NOKIA CORP -A- EUR 98.375 2,926 287.845,25

RESEARCH IN MOTION LIMITED CAD 3.500 11,800 31.461,87

SONY JPY 28.000 958,000 235.298,25

Total 988.663,60

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 6.000 EUR 7.330,82

OAT FRANCE 2003 4% 25/04/14 EUR 47.000 EUR 50.746,51

FRANCE 2004 1,60% 25/07/2015 EUR 171.000 EUR 219.735,34

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 728.000 EUR 802.599,62

Total 1.080.412,29 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Finance

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND FINANCE

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 27 March 1998 Initial subscription price: 20000 BEF Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 268.5 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies in the financial sector where conditions are such as to allow accelerated economic growth in the short or medium term.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate throughout 2012. The debt crisis in Europe continued to rage unabated. Five euro countries requested a bailout from the European emergency fund. Greece reached agreements with its private sector creditors on two occasions in the span of one year on restructuring the bond debt it owes them. Spain found itself in the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the existence of the euro was not at issue.

A new feature of this crisis compared to previous ones is that government paper, which had previously been seen as entirely risk-free, also started to be tainted with a degree of credit risk. What started as an isolated problem on the periphery of the euro area developed into an issue concerning the credibility of the monetary union and its institutions. In autumn 2009 – three years ago already – it became clear that Greece's official statistics had painted a highly flattering picture of its public finances; as a result, bond investors lost confidence and many refused to continue to fund Greece. After Greece had elaborated its own bailout programme (April 2010), it rapidly became clear that the EMU needed a structured bailout framework. This initially took the form of the European Financial Stability Facility (EFSF, May 2010) and from 1 October 2012 the permanent European Stability Mechanism (ESM), a fully-fledged supranational institution with its own legal personality. The Greek debacle and lack of political consensus on a blueprint for a renewed currency union continued to fuel mistrust among bond investors. Ireland (November 2010), Portugal (April 2011), once again Greece (July 2011), Cyprus (June 2012) and Spain (with the bailout fund for the banks in June 2012) had to concede that they were no longer able to raise funds in the market and took shelter under the European umbrella. The support of Europe (and the IMF) is dependent on strict austerity policies, which are periodically reviewed. The Greek government's first, rather draconian, austerity plan was not stringent enough and came up against much political opposition. The period July 2011 – May 2012 was one of complete political chaos. In March 2012 agreement on debt restructuring was concluded with private bondholders, under which Greece was able to eliminate more than 100 billion euros in debt. In December 2012 the European partners relaxed the interest and repayment terms on bailout fund loans to Greece. As a result of all these operations Greece's debt ratio remained sky-high (190% of GDP at the end of 2012), but the financing burden has become appreciably more realistic and there has been a marked change in bond ownership patterns: over 80% of Greek debt is now held by the public sector (European governments, central banks and the IMF). Speculation concerning the Greek exit from the EMU has dried up. In the course of 2012 the markets shifted their attention from Greece to Spain. The Spanish government has already drawn on the EFSF for the recapitalisation of its banks. In the meantime other problems are also attracting attention: the recession is deeper than had been thought, the austerity policy was already revised as many as four times in the course of 2012 and regional finances are seriously dislocated. In a lengthy address on 3 August, Prime Minister Mariano Rajoy once again emphasised the severity of the situation and drew the attention of the Spanish people to their responsibilities, while also not ruling out immediate cooperation with the EFSF. By the end of the period under review, no formal application for aid had, however, been filed. As traditionally faithful investors in government bonds, the European banks, which had seen their capital base seriously eroded in the 2008/09 credit crisis, were oversensitive to the consequences of the euro crisis and the write-downs on their bond portfolios. The euro crisis could therefore easily end up as a systemic crisis. Avoiding this provided the driver for the European Central Bank (ECB) to intervene actively, especially by buying Spanish and Italian government paper. After Draghi took over from Trichet at the ECB, the heavy artillery was brought in. In December 2011 and in February 2012 two LTRO programmes were launched under which banks were able to borrow on extremely favourable conditions for a term of 36 months. Funds totalling 1 000 billion euros were borrowed, to be invested primarily in Spanish and Italian bonds. In September the ECB introduced its bazooka in the form of Outright Monetary Transactions (OMT). The ECB expressed its willingness to buy up troubled government debt with maturities of up to three years for an unlimited period and in unlimited quantities, provided a number of conditions have been met. The most important of these is that the government in question submits a formal request for a bailout under the ESM. For this reason the OMT programme has so far been unable to start up. The financial markets have not been disturbed by this. For them the setting up of the European bazooka was enough in itself to regard the euro crisis as having been definitively averted. Public finances have gone off the rails not only in the EMU, but also in the UK and the US. The budget debate in the US has become mired in a political impasse. The divisions between Republicans and Democrats are considerable and are ideologically driven. Aware of their inability to work out a policy and fearful that the stalemate could lead to an uncontrolled explosion in debt, the parties passed automatic spending cuts into legislation to reduce the budget deficit over a period of ten years to 3% of GDP. In extremis the retiring Congress decided on New Year's Day to delay automatic spending cuts until 1 March 2013.

The Fed had already cut its key rate very early on in the crisis. Since December 2008 the rate has been a symbolic 0.25%. The European Central Bank waited considerably longer before cutting interest rates. When Mario Draghi took the helm at the ECB on 1 November 2011, Europe also adopted monetary easing measures. Its key rate is 0.75% at present. Despite the difficulties referred to above, Financials were among the best-performing sectors. The outperformance of the Banks is no doubt associated with the quantitative easing programmes undertaken by the central banks. That entails the Fed’s QE3 and, more especially, the announcement of OMT by the ECB, which eased the pressure of the euro crisis.

2.1.8 FUTURE POLICY We are expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as job growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. In Europe the budgetary plans, tighter lending policy of the banks and major uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could therefore see a contraction of European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. After much squabbling between the Democrats and Republicans a compromise was after all reached on New Year's Day concerning the most urgent budgetary issues. The agreement creates certainty as to households’ tax position, while the budget deficit is to be reduced sharply by a mix of tax increases and spending cuts. The agreement is however insufficient to restore US federal finances to sound health. Further measures are in the offing and a fresh programme of cuts may be expected as early as spring 2013. While that may be regarded as certain, how far the cuts go, what form they take and over what timeframe they will be spread out will need to become clear in the coming months. Time is of the essence for the euro area. Everyone knows that the EMU is not a perfect monetary union. In its twelve-year history, little has been done to improve its internal operation. National autonomy was off-limits. The crisis brought the realisation that economic governance, as it is now called in Eurospeak, needs to be tackled as a matter of urgency. In concrete terms, this involves measures such as supranational supervision of banks, strict monitoring and sanctioning of budgetary policy, monitoring of pay policy and harmonising European taxation. In the coming months the organisation of the ESM (European Stability Mechanism, which came into operation on 1 October 2012), the installation of the pan-European banking supervision within the ECB (to be in place by 1 March 2014) and the implementation of the Fiscal Stability Treaty (in force since 1 January 2013) will continue to demand considerable energy and diplomatic dexterity. Work on a new architecture for the EMU cannot be postponed, even though the European leaders are having to turn their attention from one emergency to another, which is not conducive to a calm climate for negotiations. The capital base of banks will need to be strengthened further to ensure the stability of the financial system, so that there is a sufficient buffer for reserves and to offset unforeseen write-downs. That will be just as important in 2013 – and probably after that too – as it was in 2011 or 2012. All the measures required to achieve this are being taken. Examples include the almost 2 000 billion euros that were set aside in the space of two years in order to ensure the smooth funding of European governments, the introduction of stress tests to establish whether the banks have sufficient capital to cope with a new and serious crisis, the gradual introduction of new and/or stricter capital requirements under Basel III and making the reserves of the ESM available for direct loans to ailing European banks. There is a chance that volatility might return to the financial sector. We will therefore compose the fund’s defensive aspect by investing within the insurance sector in reinsurers and non-life insurers. We anticipate positive returns – also after the recent rally – in the medium term if financial service providers manage to record a somewhat more normal return on equity, and if European policymakers can finally achieve lasting solutions in terms of reorganising public-sector finances.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 313.581.664,26 118.476.271,34

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 887.289,51 621.210,95 a} Collateral received in the form of bonds 7.741.623,22 6.979.359,26 C. Shares and similar instruments a) Shares 297.581.000,26 114.988.968,61 Of which securities lent 7.150.773,82 7.426.686,50 D. Other securities 20.526,47 8.323,15 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -28.324,85 m) Financial indices Futures and forward contracts (+/-) -74.250,00 n) Derivative financial instruments Swap contracts (+/-) -108.216,00 2.293.650,00

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 17.231,58 1.572,40 b) Tax assets 32.952,05 34.884,46 c) Collateral 217.000,00 B. Payables a) Accounts payable (-) -131.756,99 -272.282,56 d) Collateral (-) -7.741.623,22 -6.979.359,26

V. Deposits and cash at bank and in hand A. Demand balances at banks 15.430.282,55 719.232,64

VI. Accruals and deferrals A. Expense to be carried forward 5.380,79 B. Accrued income 201.809,30 196.392,44 C. Accrued expense (-) -349.454,47 -235.486,69

TOTAL SHAREHOLDERS' EQUITY 313.581.664,26 118.476.271,34

A. Capital 265.813.066,08 122.470.554,42

B. Income equalization 456.092,44 -1.513.795,67

C. Profit(Loss) carried forward 50.228.159,82

D. Result for the period 47.312.505,74 -52.708.647,23

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 7.741.623,22 6.979.359,26

I.A.B Cash at bank and in hand/deposits 217.000,00

III Notional amounts of futures and forward contracts

III.B Written futures and forward contracts -3.329.928,11

IV Notional amounts of swap contracts (+) 27.000.000,00 13.500.000,00

IX Financial instruments lent 7.150.773,82 7.426.686,50

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -115.159,75 11.375,82 C. Shares and similar instruments a) Shares 51.017.232,00 -56.121.757,39 D. Other securities -1.579,76 -266.196,17 F. Derivative financial instruments l) Financial indices Option contracts 28.000,00 Futures and forward contracts -93.550,00 -1.245.405,00 m) Derivative financial instruments Swap contracts (+/-) -1.617.350,69 1.317.950,00 G. Receivables, deposits, cash at bank and in hand

and payables 0,01

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts 28.324,85 18.826,56 Swap contracts (+/-) -0,78 b) Other foreign exchange positions and

transactions -4.294.736,07 2.060.121,84

II. Investment income and expenses A. Dividends 5.577.255,42 4.664.650,96 B. Interests a) Securities and money market instruments 332.898,26 73.911,21 b) Cash at bank and in hand and deposits 69.432,85 47.139,67 c) Collateral (+/-) -3.373,15 C. Interest on borrowings (-) -1.063,38 -2.749,52

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

777.148,20 22.647,35

B. Other 15.416,03

IV. Operating expenses A. Investment transaction and delivery costs (-) -556.387,73 -351.215,95 B. Financial expenses (-) -2.797,93 -7.147,24 C. Custodian's fee (-) -97.611,87 -132.984,09 D. Manager's fee (-) a) Financial management Classic Shares -483.314,52 -2.244.354,27 Institutional B Shares -2.751.497,22 -108.186,89 b) Administration and accounting management -231.595,93 -170.249,56 E. Administrative expenses (-) -139,77 -92,36 F. Formation and organisation expenses (-) -23.213,36 -108.928,05 G. Remuneration, social security charges and

pension -17,09 -42,79

H. Services and sundry goods (-) -33.897,71 -55.141,96 J. Taxes Classic Shares -39.865,45 -96.470,72 Institutional B Shares -31.579,27 55.879,83 K. Other expenses (-) -142.427,56 -82.271,40

Income and expenditure for the period Subtotal II + III + IV 2.361.325,94 1.516.437,10

V. Profit (loss) on ordinary activities before tax 47.312.505,74 -52.708.647,23

VII. Result for the period 47.312.505,74 -52.708.647,23

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 47.768.598,18 -3.994.283,08 Profit (loss) brought forward from the previous

financial year 50.228.159,82

Profit for the period available for appropriation 47.312.505,74 -52.708.647,23 Income on the creation of shares (income on the

cancellation of shares) 456.092,44 -1.513.795,67

II. (Appropriations to) Deductions from capital -47.734.425,73 4.032.743,55

IV. (Dividends to be paid out) -34.172,45 -38.460,47

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND FINANCE

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Bonds issued by credit institutions

U.S.A.

GAMCO INVESTORS INC 31/12/2015 19.600,00 USD 91,308 13.574,31 0,01 0,00

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 1.464.000,00 EUR 59,680 873.715,20 0,29 0,28

Total bonds 887.289,51 0,30 0,28

Shares

Exchange-listed shares

Australia

AMP LTD - 68.679,00 AUD 4,810 260.135,44 0,09 0,08

ANZ BANKING GROUP - 63.884,00 AUD 25,050 1.260.173,40 0,42 0,40

CHALLENGER LTD - 144.040,00 AUD 3,540 401.528,94 0,14 0,13

COMMONWEALTH BK OF AUSTRALIA - 23.551,00 AUD 62,180 1.153.162,60 0,39 0,37

GOODMAN GROUP - 41.194,00 AUD 4,330 140.459,89 0,05 0,05

INSURANCE AUSTRALIA GR LTD - 44.425,00 AUD 4,690 164.070,60 0,06 0,05

MACQUARIE GROUP LTD - 9.022,00 AUD 35,490 252.138,58 0,09 0,08

NATIONAL AUSTRALIA BANK - 74.257,00 AUD 25,000 1.461.867,08 0,49 0,47

QBE INSURANCE GROUP LTD - 33.075,00 AUD 10,900 283.894,40 0,10 0,09

STOCKLAND - 110.602,00 AUD 3,530 307.445,52 0,10 0,10

SUNCORP GROUP LTD - 19.111,00 AUD 10,170 153.050,53 0,05 0,05

WESTFIELD GROUP - 42.139,00 AUD 10,560 350.411,72 0,12 0,11

WESTFIELD RETAIL TRUST - 57.613,00 AUD 3,020 137.011,78 0,05 0,04

WESTPAC BANKING - 68.359,00 AUD 26,040 1.401.739,00 0,47 0,45

Austria

VIENNA INSURANCE GROUP - 22.577,00 EUR 40,375 911.546,38 0,31 0,29

Belgium

AGEAS NV (BRU) B STRIP-VVPR 795,00 EUR 0,001 0,80

AGEAS NV - 99.784,00 EUR 22,215 2.216.701,56 0,74 0,71

KBC ANCORA - 71.014,00 EUR 12,950 919.631,30 0,31 0,29

KBC GROUP - 57.739,00 EUR 26,150 1.509.874,85 0,51 0,48

Bermuda

AXIS CAPITAL HOLDINGS LTD - 6.328,00 USD 34,640 166.263,59 0,06 0,05

ENDURANCE SPECIALTY HOLDINGS - 36.314,00 USD 39,690 1.093.221,07 0,37 0,35

HAL TRUST (AMS) 8.042,00 EUR 96,950 779.671,90 0,26 0,25

PLATINUM UNDERWRITERS HOLDINGS - 25.099,00 USD 46,000 875.723,60 0,29 0,28

Brazil

BANRISUL - 238.100,00 BRL 15,510 1.368.005,56 0,46 0,44

ITAU UNIBANCO HOLDINGS SA PREF PREF 199.500,00 BRL 33,390 2.467.606,96 0,83 0,79

SUL AMERICA SA - 286.300,00 BRL 17,700 1.877.203,19 0,63 0,60

Canada

BANK OF NOVA SCOTIA - 108.636,00 CAD 57,460 4.755.256,01 1,59 1,52

C.I.B.C. - 8.135,00 CAD 79,970 495.586,16 0,17 0,16

INDUSTRIAL ALLIANCE INS & FIN SERV - 3.383,00 CAD 31,380 80.870,37 0,03 0,03

MANULIFE FINANCIAL CORP - 42.958,00 CAD 13,510 442.113,64 0,15 0,14

ONEX CORPORATION - 34.891,00 CAD 41,870 1.112.886,55 0,37 0,36

ROYAL BK CANADA - 29.959,00 CAD 59,880 1.366.606,93 0,46 0,44

SUN LIFE FINANCIAL INC - 13.247,00 CAD 26,370 266.110,60 0,09 0,09

TMX GROUP LTD - 2.489,00 CAD 50,720 96.169,79 0,03 0,03

TORONTO DOMINION BK - 61.338,00 CAD 83,750 3.913.352,25 1,31 1,25

China

AGRICULTURAL BANK OF CHINA - 5.418.000,00 HKD 3,830 2.030.682,96 0,68 0,65

BANK OF CHINA LTD - H - 959.000,00 HKD 3,460 324.712,54 0,11 0,10

BANK OF COMMUNICATIONS LTD - 400.000,00 HKD 5,840 228.600,51 0,08 0,07

CHINA CONSTRUCTION BANK - 6.627.830,00 HKD 6,220 4.034.280,54 1,35 1,29

CHINA LIFE INSURANCE CO - 350.120,00 HKD 25,300 866.845,68 0,29 0,28

CHONGQING RURAL COMMERCIAL BANK - 3.436.000,00 HKD 4,240 1.425.684,28 0,48 0,46

IND & COMM BK OF CHINA - 5.829.707,00 HKD 5,500 3.137.716,98 1,05 1,00

PING AN INSURANCE GROUP CO - 243.685,00 HKD 64,900 1.547.668,15 0,52 0,49

Denmark

DANSKE BK AS - 10.000,00 DKK 95,650 128.199,97 0,04 0,04

Finland

SAMPO OYJ SAMPO OYJ 24.746,00 EUR 24,340 602.317,64 0,20 0,19

SPONDA OYJ (HEL) 335.739,00 EUR 3,600 1.208.660,40 0,41 0,39

France

AXA - 177.197,00 EUR 13,350 2.365.579,95 0,79 0,75

BNP PARIBAS - 70.078,00 EUR 42,585 2.984.271,63 1,00 0,95

CNP ASSURANCE (PAR) 9.031,00 EUR 11,605 104.804,76 0,04 0,03

NATIXIS (PAR) 80.000,00 EUR 2,550 204.000,00 0,07 0,07

RODAMCO UNIBAIL - 1.632,00 EUR 181,950 296.942,40 0,10 0,10

SCOR REGROUPE (PAR) 95.899,00 EUR 20,410 1.957.298,59 0,66 0,62

SOCIETE GENERALE - 144.586,00 EUR 28,340 4.097.567,24 1,37 1,31

Germany

ALLIANZ AG REG 41.024,00 EUR 104,800 4.299.315,20 1,44 1,37

COMMERZBANK AG - 916.221,00 EUR 1,434 1.313.860,91 0,44 0,42

DEUTSCHE BANK AG REG 52.584,00 EUR 32,950 1.732.642,80 0,58 0,55

DEUTSCHE BOERSE AG - 66.426,00 EUR 46,210 3.069.545,46 1,03 0,98

DEUTSCHE WOHNEN AG - 60.900,00 EUR 14,000 852.600,00 0,29 0,27

GSW IMMOBILIEN AG - 24.340,00 EUR 32,000 778.880,00 0,26 0,25

MUNCHENER RUCKVERSICHERUNG AG REG 5.728,00 EUR 136,000 779.008,00 0,26 0,25

Hong Kong

BOC HONG KONG HOLD LTD - 488.578,00 HKD 24,100 1.152.272,77 0,39 0,37

CHEUNG KONG HLDGS - 109.775,00 HKD 119,000 1.278.364,66 0,43 0,41

HANG LUNG PROPERTIES LTD - 146.147,00 HKD 30,800 440.499,05 0,15 0,14

HANG SENG BANK LTD. - 62.466,00 HKD 118,700 725.602,49 0,24 0,23

HENDERSON LAND - 45.258,00 HKD 54,700 242.262,97 0,08 0,08

HONG KONG EXCHANGES & CLEARING LTD. - 53.519,00 HKD 131,900 690.807,65 0,23 0,22

HUTCHISON WHAMPOA - 57.000,00 HKD 80,900 451.260,92 0,15 0,14

SHUN TAK HOLDINGS LTD. - 960.000,00 HKD 4,190 393.631,28 0,13 0,13

SUN HUNG KAI PROPS - 126.300,00 HKD 116,200 1.436.196,39 0,48 0,46

SWIRE PROPERTIES LTD - 32.267,00 HKD 25,850 81.625,06 0,03 0,03

WING HANG BANK - 78.500,00 HKD 80,900 621.473,38 0,21 0,20

India

HOUSING DEV. FIN. CORP. LTD. - 46.103,00 INR 828,850 529.000,70 0,18 0,17

Ireland

BANK OF IRELAND - 73.157,00 EUR 0,114 8.339,90 0,00 0,00

PERMANENT TSB GROUP HOLDINGS P - 1.485.244,00 EUR 0,022 32.081,27 0,01 0,01

Italy

AZIMUT HOLDING SPA - 162.716,00 EUR 10,850 1.765.468,60 0,59 0,56

INTESA SANPAOLO SPA (MIL) RSNC 53.890,00 EUR 1,067 57.500,63 0,02 0,02

INTESA SANPAOLO SPA - 726.520,00 EUR 1,300 944.476,00 0,32 0,30

MEDIOBANCA (MIL) 272.611,00 EUR 4,662 1.270.912,48 0,43 0,41

MEDIOLANUM SPA (MIL) 285.142,00 EUR 3,834 1.093.234,43 0,37 0,35

UNICREDIT SPA - 284.996,00 EUR 3,706 1.056.195,18 0,35 0,34

Japan

AIFUL CORP - 4.350,00 JPY 585,000 22.322,37 0,01 0,01

AOZORA BANK LTD - 611.000,00 JPY 264,000 1.414.947,37 0,47 0,45

BANK OF YOKOHAMA - 51.035,00 JPY 400,000 179.070,18 0,06 0,06

CHIBAB BANK LTD/THE - 66.052,00 JPY 504,000 292.019,37 0,10 0,09

DAI-ICHI MUTUAL LIFE INSURANCE - 2.726,00 JPY 119.900,000 2.867.082,46 0,96 0,91

JAFCO CO LTD - 22.400,00 JPY 2.528,000 496.729,82 0,17 0,16

LEOPALACE21 CORP - 9.748,00 JPY 355,000 30.355,61 0,01 0,01

MILLEA HOLDINGS INC - 163.885,00 JPY 2.383,000 3.425.771,54 1,15 1,09

MITSUBISHI ESTATE - 95.979,00 JPY 2.049,000 1.725.096,24 0,58 0,55

MITSUBISHI UFJ FINANCIAL GROUP - 1.440.954,00 JPY 461,000 5.827.015,74 1,95 1,86

MITSUI FUDOSAN - 87.273,00 JPY 2.090,000 1.600.005,00 0,54 0,51

MITSUI SUMITOMO INSUR GROUP - 15.418,00 JPY 1.705,000 230.593,77 0,08 0,07

MIZUHO FINANCIAL GROUP INC. - 1.589.600,00 JPY 157,000 2.189.185,96 0,73 0,70

MORI HILLS REIT INVESTMENT COR - 169,00 JPY 463.000,000 686.377,19 0,23 0,22

NKSJ HOLDINGS INC - 5.719,00 JPY 1.835,000 92.055,83 0,03 0,03

NOMURA HOLDINGS INC - 69.094,00 JPY 503,000 304.862,12 0,10 0,10

NORTH PACIFIC BANK LTD - 100.000,00 JPY 242,000 212.280,70 0,07 0,07

ORIX (ORIENT LEASING) - 18.824,00 JPY 9.690,000 1.600.040,00 0,54 0,51

RESONA HOLDINGS INC - 14.500,00 JPY 392,000 49.859,65 0,02 0,02

SBI HOLDINGS INC - 6.940,00 JPY 762,000 46.388,42 0,02 0,02

SHINSEI BANK LTD - 56.920,00 JPY 171,000 85.380,00 0,03 0,03

SHIZUOKA BANK LTD - 114.192,00 JPY 841,000 842.416,42 0,28 0,27

SONY FINANCIAL HOLDINGS INC - 114.600,00 JPY 1.540,000 1.548.105,26 0,52 0,49

SUMITOMO MITSUI FINANCIAL GROUP INC - 183.300,00 JPY 3.115,000 5.008.592,11 1,68 1,60

SUMITOMO MITSUI TRUST HOLD INC - 240.507,00 JPY 301,000 635.022,87 0,21 0,20

SUMITOMO REALTY & DEV. - 57.380,00 JPY 2.847,000 1.432.990,00 0,48 0,46

T&D HOLDINGS INC - 20.942,00 JPY 1.041,000 191.233,53 0,06 0,06

Jersey/The Channel Islands

BEAZLEY PLC - 841.344,00 GBP 1,769 1.834.961,82 0,62 0,59

HENDERSON GROUP PLC - 269.722,00 GBP 1,323 439.948,47 0,15 0,14

Malaysia

BURSA MALAYSIA BHD - 1.145.300,00 MYR 6,220 1.766.938,51 0,59 0,56

CIMB GROUP HOLDINGS BHD - 470.958,00 MYR 7,630 891.288,92 0,30 0,28

Mexico

GRUPO FINANC NORTE "O" 152.700,00 MXN 83,450 744.288,53 0,25 0,24

Netherlands

AEGON - 379.791,00 EUR 4,803 1.824.136,17 0,61 0,58

DELTA LLOYD - 97.584,00 EUR 12,335 1.203.698,64 0,40 0,38

ING GROEP NV - 735.245,00 EUR 7,061 5.191.564,95 1,74 1,66

Norway

ABG SUNDAL COLLIER HOLDINGS ASA - 171.166,00 NOK 4,300 100.312,63 0,03 0,03

DNB ASA - 217.772,00 NOK 70,400 2.089.509,46 0,70 0,67

STOREBRAND ASA - 545.665,00 NOK 26,820 1.994.594,03 0,67 0,64

Russia

SBERBANK OF RUSSIA ADR 244.769,00 USD 12,300 2.283.570,01 0,77 0,73

Singapore

CAPITALAND LTD - 275.828,00 SGD 3,700 633.693,64 0,21 0,20

DBS GROUP HOLDINGS LTD - 168.729,00 SGD 14,840 1.554.758,37 0,52 0,50

KEPPEL LAND LTD. - 112.806,00 SGD 4,030 282.277,67 0,10 0,09

UNITED OVERSEAS BANK LTD. - 101.830,00 SGD 19,810 1.252.562,74 0,42 0,40

South Africa

RMI HOLDINGS - 94.556,00 ZAR 20,580 173.967,22 0,06 0,06

South Korea

KB FINANCIAL GROUP INC - 74.838,00 KRW 37.900,000 2.009.536,43 0,67 0,64

KOREA EXCHANGE BANK - 76.540,00 KRW 7.620,000 413.216,76 0,14 0,13

SHINHAN FINANCIAL GROUP CO LTD. - 60.042,00 KRW 38.850,000 1.652.649,19 0,55 0,53

Spain

BANCO BILBAO VIZCAYA ARGENTARIA - 128.151,00 EUR 6,960 891.930,96 0,30 0,28

BANCO SANTANDER CENTRAL HISPANO SA - 811.970,00 EUR 6,100 4.953.017,00 1,66 1,58

Sweden

EAST CAPITAL EXPLORER AB - 214.709,00 SEK 49,000 1.226.651,08 0,41 0,39

KINNEVIK INVESTMENT AB -B- 103.176,00 SEK 135,700 1.632.425,05 0,55 0,52

NORDEA BANK AB - 52.222,00 SEK 62,100 378.111,44 0,13 0,12

Switzerland

CS GROUP REG 227.205,00 CHF 22,260 4.190.904,29 1,41 1,34

EFG INTERNATIONAL - 34.770,00 CHF 8,900 256.424,43 0,09 0,08

GAM HOLDING LTD - 6.547,00 CHF 12,350 66.999,88 0,02 0,02

GOTTEX FUND MANAGEMENT HOLDING - 40.849,00 CHF 2,770 93.761,79 0,03 0,03

SWISS RE - 14.639,00 CHF 65,900 799.395,18 0,27 0,26

U.B.S. REG 393.956,00 CHF 14,270 4.658.395,86 1,56 1,49

ZURICH INSURANCE GROUP AG - 7.462,00 CHF 243,400 1.505.013,92 0,50 0,48

Thailand

SIAM COMM. BK. PUBL. CO. LOCAL 432.400,00 THB 181,500 1.945.965,65 0,65 0,62

Turkey

ANADOLU HAYAT EMEKLILIK - 1.030.749,00 TRY 4,210 1.844.221,54 0,62 0,59

ANADOLU SIGORTA - 391.744,00 TRY 1,150 191.460,09 0,06 0,06

TEKFEN HOLDINGS AS - 408.916,00 TRY 7,240 1.258.203,08 0,42 0,40

TURKIYE GARANTI BANKASI A.S. - 210.336,00 TRY 9,260 827.756,63 0,28 0,26

U.K.

ABERDEEN ASSET MGMT PLC - 339.641,00 GBP 3,671 1.537.199,00 0,52 0,49

ASHMORE GROUP PLC - 273.882,00 GBP 3,594 1.213.576,51 0,41 0,39

AVIVA PLC - 700.000,00 GBP 3,730 3.219.085,19 1,08 1,03

BARCLAYS BANK PLC - 2.124.935,00 GBP 2,624 6.874.404,44 2,30 2,19

BRITISH LAND CO LTD - 206.752,00 GBP 5,620 1.432.556,08 0,48 0,46

HSBC HOLDING PLC - 1.315.792,00 GBP 6,469 10.494.215,82 3,52 3,35

JUPITER FUND MANAGEMENT PLC - 90.334,00 GBP 2,785 310.171,61 0,10 0,10

LEGAL & GENERAL GROUP PLC - 129.448,00 GBP 1,456 232.371,21 0,08 0,07

LLOYDS BANKING GROUP PLC - 4.207.511,00 GBP 0,479 2.485.549,12 0,83 0,79

LONDON STOCK EXCHANGE GRP PLC - 52.584,00 GBP 10,880 705.355,59 0,24 0,23

MAN GROUP PLC - 122.930,00 GBP 0,828 125.415,58 0,04 0,04

NOVAE GROUP PLC - 190.304,00 GBP 3,969 931.166,32 0,31 0,30

OLD MUTUAL PLC - 100.366,00 GBP 1,782 220.505,75 0,07 0,07

PRUDENTIAL PLC - 219.408,00 GBP 8,655 2.341.235,66 0,79 0,75

RESOLUTION PLC - 21.370,00 GBP 2,475 65.208,67 0,02 0,02

ROYAL & SUN ALLIANCE INS. - 191.863,00 GBP 1,257 297.339,16 0,10 0,10

ROYAL BANK OF SCOTLAND GROUP PLC - 199.990,00 GBP 3,245 800.107,94 0,27 0,26

SCHRODERS PLC - 11.600,00 GBP 16,860 241.124,40 0,08 0,08

SONGBIRD ESTATES PLC - 65.784,00 GBP 1,190 96.514,56 0,03 0,03

STANDARD CHARTERED - 89.182,00 GBP 15,735 1.730.093,42 0,58 0,55

3IGROUP - 744.430,00 GBP 2,172 1.993.468,08 0,67 0,64

U.S.A.

AFFILIATED MANAGERS GROUP - 3.105,00 USD 130,150 306.519,83 0,10 0,10

AMERICAN INT. GROUP - 84.283,00 USD 35,300 2.256.667,10 0,76 0,72

AMERIPRISE FINANCIAL INC - 1.842,00 USD 62,630 87.503,38 0,03 0,03

BANK OF AMERICA - 221.639,00 USD 11,610 1.951.781,55 0,65 0,62

BANK OF NEW YORK MELLON CORP - 78.894,00 USD 25,700 1.537.906,40 0,52 0,49

BB&T CORPORATION - 61.541,00 USD 29,110 1.358.812,58 0,46 0,43

BLACKROCK INC. - 1.392,00 USD 206,710 218.249,64 0,07 0,07

CAPITAL ONE FINANCIAL CORP - 63.811,00 USD 57,930 2.803.831,33 0,94 0,89

CITIGROUP INC - 182.410,00 USD 39,560 5.473.406,86 1,83 1,75

CME GROUP INC - 58.358,00 USD 50,670 2.242.870,04 0,75 0,72

COMERICA INC - 9.033,00 USD 30,340 207.874,10 0,07 0,07

DISCOVER FINANCIAL SERVICES - 40.421,00 USD 38,550 1.181.909,55 0,40 0,38

E-TRADE GROUP INC. - 5.746,00 USD 8,950 39.006,90 0,01 0,01

FANNIE MAE - 45.680,00 USD 0,255 8.835,25 0,00 0,00

FIFTH THIRD BANCORPORATION - 189.882,00 USD 15,190 2.187.733,30 0,73 0,70

FIRST MARBLEHEAD CORP - 7.846,00 USD 0,777 4.623,45 0,00 0,00

FRANKLIN RESOURCES INC - 13.347,00 USD 125,700 1.272.540,88 0,43 0,41

GOLDMAN SACHS - 29.342,00 USD 127,560 2.838.945,33 0,95 0,91

HUNTINGTON BANCSHARES,INC. - 112.889,00 USD 6,390 547.148,60 0,18 0,17

INTERCONTINENTALEXCHANGE INC - 15.158,00 USD 123,810 1.423.476,93 0,48 0,45

INVESCO LTD - 10.509,00 USD 26,090 207.964,05 0,07 0,07

INVESTMENT TECHNOLOGY GROUP - 9.899,00 USD 9,000 67.575,09 0,02 0,02

ISTAR FINANCIAL INC - 2.534,00 USD 8,150 15.664,52 0,01 0,01

JANUS CAPITAL GROUP INC - 16.138,00 USD 8,520 104.289,87 0,04 0,03

JPMORGAN CHASE & CO - 280.592,00 USD 43,970 9.358.032,65 3,14 2,98

KEYCORP - 301.916,00 USD 8,420 1.928.195,33 0,65 0,62

LINCOLN NATIONAL CORPORATION - 69.657,00 USD 25,900 1.368.413,46 0,46 0,44

METLIFE INC. - 152.970,00 USD 32,940 3.821.929,46 1,28 1,22

MGIC INVESTMENT CORPORATION - 201.773,00 USD 2,660 407.096,62 0,14 0,13

MOODY'S CORP - 2.858,00 USD 50,320 109.082,65 0,04 0,04

MORGAN STANLEY - 204.816,00 USD 19,120 2.970.329,13 1,00 0,95

NASDAQ OMX GROUP INC - 53.477,00 USD 25,010 1.014.456,74 0,34 0,32

NATIONAL FINANCIAL PARTNERS CORP - 3.815,00 USD 17,140 49.597,31 0,02 0,02

NYSE GROUP INC - 66.925,00 USD 31,540 1.601.042,55 0,54 0,51

PARTNERRE LTD - 3.561,00 USD 80,490 217.403,59 0,07 0,07

PEOPLES UNITED FINANCIAL INC - 134.223,00 USD 12,090 1.230.852,60 0,41 0,39

PNC FINANCIAL SERVICES GROUP - 61.444,00 USD 58,310 2.717.536,13 0,91 0,87

POPULAR INC - 125.981,00 USD 20,790 1.986.608,76 0,67 0,63

PRINCIPAL FINANCIAL GROUP INC - 61.514,00 USD 28,520 1.330.688,17 0,45 0,42

PROLOGIS TRUST - 2.057,00 USD 36,490 56.932,59 0,02 0,02

PRUDENTIAL FINANCIAL INC - 79.501,00 USD 53,330 3.215.858,87 1,08 1,03

RADIAN GROUP INC - 5.209,00 USD 6,110 24.140,62 0,01 0,01

REGIONS FINANCIAL CORPORATION - 347.234,00 USD 7,120 1.875.232,16 0,63 0,60

REINSURANCE GROUP OF AMERICA INC - 2.336,00 USD 53,520 94.829,13 0,03 0,03

SCHWAB (CHARLES) CORP. - 8.404,00 USD 14,360 91.536,29 0,03 0,03

SIMON PROPERTY GROUP INC - 9.772,00 USD 158,090 1.171.765,38 0,39 0,37

STATE STREET CORPORATION - 28.493,00 USD 47,010 1.015.970,82 0,34 0,32

SUNTRUST BANKS - 88.935,00 USD 28,350 1.912.399,31 0,64 0,61

SYNOVIS FINANCIAL CORPORATION - 324.387,00 USD 2,450 602.812,61 0,20 0,19

TD AMERITRADE HOLDING CORP - 6.456,00 USD 16,810 82.315,96 0,03 0,03

TORCHMARK - 2.908,00 USD 51,670 113.968,72 0,04 0,04

TRAVELERS COS INC - 15.320,00 USD 71,820 834.558,86 0,28 0,27

US BANCORP - 109.045,00 USD 31,940 2.641.760,69 0,89 0,84

VALIDUS HOLDINGS LTD - 15.617,00 USD 34,580 409.614,58 0,14 0,13

VIRTUS INVESTMENT PARTNERS INC - 1.263,00 USD 120,940 115.858,02 0,04 0,04

WELLS FARGO COMPANY - 311.270,00 USD 34,180 8.069.788,08 2,71 2,57

WINTRUST FINANCIAL CORP - 14.389,00 USD 36,700 400.543,31 0,13 0,13

XL GROUP PLC "A" 25.000,00 USD 25,060 475.197,21 0,16 0,15

ZIONS BANCORPORATION - 85.915,00 USD 21,400 1.394.554,76 0,47 0,45

Total shares 297.581.000,26 99,73 94,90

Warrants

U.S.A.

AIG-FP MATCHED FUNDING 19/01/2021 1.961,00 USD 13,800 20.526,24 0,01 0,01

Total Warrants 20.526,24 0,01 0,01

Rights

Sweden

EAST CAPITAL EXPLORER AB CP 07/12/12 197.162,00 SEK 0,000 0,23

Total rights 0,23

Swaps

France

SOCIETE GENERALE ELS NAM-EUR 5 FIN 27.000.000,00 EUR -0,401 -108.216,00 -0,04 -0,04

Total swaps -108.216,00 -0,04 -0,04

TOTAL SECURITIES PORTFOLIO 298.380.600,24 100,00 95,15

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 7.741.623,22 EUR 1,000 7.741.623,22 2,47

TOTAL RECEIVED COLLATERAL 7.741.623,22 2,47

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 153.492,14 AUD 1,000 120.869,47 0,04

KBC GROUP CAD 8.600,82 CAD 1,000 6.552,01 0,00

KBC GROUP CHF 5.361,00 CHF 1,000 4.442,33 0,00

KBC GROUP DKK 83.459,66 DKK 1,000 11.186,12 0,00

KBC GROUP EURO 6.099.248,41 EUR 1,000 6.099.248,41 1,95

KBC GROUP GBP 30.519,30 GBP 1,000 37.627,05 0,01

KBC GROUP HKD 289.886,96 HKD 1,000 28.368,28 0,01

KBC GROUP HUF 5.294,32 HUF 1,000 18,18

KBC GROUP JPY 759.308,00 JPY 1,000 6.660,60 0,00

KBC GROUP MXN 15.149,68 MXN 1,000 884,87

KBC GROUP NOK 15.882,76 NOK 1,000 2.164,69 0,00

KBC GROUP SEK 42.631,99 SEK 1,000 4.970,62 0,00

KBC GROUP SGD 793.933,84 SGD 1,000 492.973,51 0,16

KBC GROUP TRY 4.701,50 TRY 1,000 1.998,09 0,00

KBC GROUP USD 11.353.479,78 USD 1,000 8.611.559,30 2,75

KBC GROUP ZAR 8.490,26 ZAR 1,000 759,02

Total demand accounts 15.430.282,55 4,92

TOTAL CASH AT BANK AND IN HAND 15.430.282,55 4,92

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 17.231,58 EUR 1,000 17.231,58 0,01

KBC GROUP WHT TO BE RECOVERED EUR 32.952,05 EUR 1,000 32.952,05 0,01

Total receivables 50.183,63 0,02

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -7.741.623,22 EUR 1,000 -7.741.623,22 -2,47

KBC GROUP EUR PAYABLE -131.756,99 EUR 1,000 -131.756,99 -0,04

Payables -7.873.380,21 -2,51

TOTAL RECEIVABLES AND PAYABLES -7.823.196,58 -2,50

OTHER

Interest receivable EUR 192.058,51 0,06

Accrued interest EUR 9.750,79 0,00

Expenses payable EUR -349.454,47 -0,11

TOTAL OTHER -147.645,17 -0,05

TOTAL NET ASSETS 313.581.664,26 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 3,46 4,45 3,97 2,59 Austria 0,21 0,25 0,40 0,31 Belgium 1,32 1,47 1,25 1,56 Bermuda 1,90 1,63 1,39 0,98 Brazil 3,56 3,09 2,02 1,91 Canada 1,85 2,20 3,39 4,20 Switzerland 3,55 4,37 2,25 3,88 China 2,60 3,39 2,87 4,04 Cyprus 0,53 0,00 0,00 0,00 Germany 4,03 3,71 3,54 4,30 Denmark 0,89 0,08 0,06 0,04 Spain 2,85 1,73 2,22 1,96 Finland 0,27 0,74 0,61 0,61 France 6,62 4,53 6,09 3,99 U.K. 9,71 12,31 11,58 12,59 Greece 0,91 0,29 0,00 0,00 Hong Kong 3,75 3,76 3,28 3,04 India 0,46 0,41 0,24 0,18 Ireland 0,03 0,55 0,50 0,31 Italy 2,85 2,37 2,94 2,07 Jersey/The Channel Islands 1,10 1,17 0,97 0,76 Japan 4,81 6,82 9,42 11,07 South Korea 1,68 1,58 1,42 1,37 Luxembourg 0,06 0,00 0,00 0,00 Mexico 0,73 0,56 0,29 0,25 Malaysia 0,50 0,45 0,19 0,89 Netherlands 2,06 1,87 2,31 2,75 Norway 0,94 1,00 1,08 1,40 Russia 0,40 0,47 0,48 0,77 Singapore 1,44 1,38 1,69 1,25 Sweden 0,43 0,49 1,10 1,08 Thailand 0,00 0,00 0,54 0,65 Turkey 3,44 2,20 2,22 1,38 U.S.A. 30,86 30,38 29,46 27,76 South Africa 0,20 0,30 0,23 0,06 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 0,63 0,87 0,94 0,83 Consum(cycl) 0,00 0,00 0,14 0,13 Financials 94,25 92,49 92,85 93,05 Technology 0,91 1,19 0,40 0,39 Real est. 3,68 5,45 5,67 5,60 Governm. 0,53 0,00 0,00 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 3,46 4,42 3,93 2,50 BRL 3,55 3,07 1,88 1,82 CAD 1,85 2,20 3,30 4,00 CHF 3,55 4,00 1,44 3,69 DKK 0,89 0,09 0,06 0,04 EUR 22,16 20,92 22,18 19,14 GBP 10,74 11,33 11,61 12,64 HKD 6,36 7,12 5,92 6,74 INR 0,46 0,41 0,22 0,17 JPY 4,79 6,28 8,46 10,53 KRW 1,68 1,57 1,32 1,30 MXN 0,73 0,56 0,52 0,24 MYR 0,50 0,45 0,18 0,85 NOK 0,94 0,99 1,07 1,33 SEK 0,43 0,49 1,08 1,03 SGD 1,44 1,37 1,77 1,34 THB 0,00 0,00 0,50 0,62 TRY 3,44 2,21 2,08 1,31 USD 32,83 32,22 32,26 30,65 ZAR 0,20 0,30 0,22 0,06 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND FINANCE (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 118.552.244,38 127.590.585,71 246.142.830,10 Sales 49.323.919,98 61.904.391,29 111.228.311,27 Total 1 167.876.164,36 189.494.977,00 357.371.141,36 Subscriptions 131.278.169,46 165.503.816,63 296.781.986,09 Redemptions 48.713.508,24 100.468.074,97 149.181.583,21 Total 2 179.991.677,70 265.971.891,60 445.963.569,30 Monthly average of total assets

197.175.022,85 266.487.866,04 231.831.444,44

Turnover rate -6,14 % -28,70 % -38,21 %

1st half of year 2nd half of year YearPurchases 118.552.244,38 127.590.585,71 246.142.830,10 Sales 49.323.919,98 61.904.391,29 111.228.311,27 Total 1 167.876.164,36 189.494.977,00 357.371.141,36 Subscriptions 131.278.169,46 165.503.816,63 296.781.986,09 Redemptions 48.713.508,24 100.468.074,97 149.181.583,21 Total 2 179.991.677,70 265.971.891,60 445.963.569,30 Monthly average of total assets

-2.572.295.825,69 304.968.355,85 291.748.758,27

Corrected turnover rate 0,47 % -25,08 % -30,37 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 7.741.623,22 7.741.623,22 N/A 31.12.2012

SOCGENER EUR 27.000.000,00 27.000.000,00 N/A 02.10.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 449.499,54 739,76 423.817,34 5.721,00 425.315,84 14.097,76 439.413,59

2011 - 12 1.132.177,65 34.970,95 1.489.171,44 32.908,84 68.322,04 16.159,86 84.481,91

2012 - 12 90.750,36 529,68 40.252,75 2.586,77 118.819,65 14.102,78 132.922,43

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 163.242.237,40 208.580,10 151.507.172,93 1.639.801,55

2011 - 12 173.357.562,43 219.222,86 478.848.275,86 10.139.513,10

2012 - 12 32.635.086,31 148.425,05 14.162.521,66 694.301,16

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 165.802.058,68 379,92 299,11

2011 - 12 24.199.529,64 298,91 233,74

2012 - 12 49.692.299,85 382,96 297,01

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 340.418,99 25.310,99 315.108,00 315.108,00

2012 - 12 761.879,73 389.088,79 687.898,94 687.898,94

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 96.230.264,67 7.499.492,44

2012 - 12 265.475.159,49 135.572.518,87

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 94.276.741,70 299,19

2012 - 12 263.889.364,41 383,62

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0166985482 EUR 27.14% 3.59% -5.47% 0.0025 27/03/1998 -1.79%

DIV BE0166984477 EUR 27.20% 3.63% -5.46% 0.0025 27/03/1998 -1.79%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228544779 EUR 27.23% 25/11/2011 37.32%

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. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 1.82 EUR net (2.42 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.673% Classic Shares Capitalization: 1.795% Institutional B Shares Capitalization: 1.646% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 53,349 32,004 59.99%

CSFBSAS 45,419 23,830 52.47%

DEUTSCHE 15,442 8,328 53.93%

EQ CSA MACQUARIE 1,477 834 56.48%

HSBC 8,042 2,359 29.33%

JP MORGAN 7,055 3,919 55.56%

MERRILL 11,344 6,550 57.74%

MORGAN STANLEY 54,317 29,012 53.41%

NOMURA 40,325 17,622 43.70%

SOCGEN 689 337 48.93%

UBSWDR 42,427 24,097 56.80%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 169.001,79 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

BANK OF COMMUNICATIONS CO -H- HKD 399.999 5,840 228.599,94

BARCLAYS PLC GBP 130.000 2,624 420.564,67

CAN IMP BK COMMERCE CAD 8.100 79,970 493.453,95

CAPITALAND LIMITED SGD 186.000 3,700 427.320,71

HANG SENG BANK LTD HKD 17.546 118,700 203.813,62

HENDERSON GROUP PLC GBP 269.721 1,323 439.946,84

INSURANCE AUSTRALIA GROUP LTD AUD 5.077 4,690 18.750,40

MANULIFE FINANCIAL CORP CAD 38.000 13,510 391.087,07

MIZUHO FINANCIAL GROUP JPY 1.459.000 157,000 2.009.324,56

ORIX CORP JPY 16.565 9690,000 1.408.025,00

QBE INSURANCE GROUP LTD AUD 33.074 10,900 283.885,82

STOCKLAND AUD 80.980 3,530 225.103,87

WESTFIELD RETAIL TRUST AUD 57.612 3,020 137.009,40

ZURICH INSURANCE GROUP AG CHF 2.300 243,400 463.887,97

Total 7.150.773,82

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

BUNDESREPUB.DTL. 2011 2.25% 04/09/21 EUR 2.061.000 EUR 2.270.776,82

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 47.000 EUR 57.424,79

FRANCE 2003 2,25% 25/07/2020 EUR 318.000 EUR 462.706,85

OAT FRANCE 2003 4% 25/04/14 EUR 104.000 EUR 112.290,15

FRANCE 2004 1,60% 25/07/2015 EUR 615.000 EUR 790.276,23

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 212.000 EUR 233.724,06

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 1.170.000 EUR 1.311.000,21

FRANCE - 08/14 3.00% 12/07 EUR 1.753.000 EUR 1.857.324,54

NEDERLAND 2005 4% 15/01/37 EUR 472.000 EUR 646.099,56

Total 7.741.623,21 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Euro Telecom & Technology

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND EURO TELECOM & TECHNOLOGY

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 28 January 2000 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 83.18 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED The assets are invested primarily in shares of European companies in the telecommunication, technology and media sectors.

RISK CONCENTRATION Shares of European companies in the telecommunication, technology and media sectors.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. In Europe the debt crisis continued to rage unabated. Five euro countries needed a bail-out from the European emergency funds. Greece twice reached an agreement during the year with its private sector creditors concerning a rescheduling of its bond debts. Spain came into the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia.

In the EMU real GDP shrank by 0.3% y-o-y. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany fulfilled its traditional role as locomotive of the European economy to a lesser extent than in the recent past. Greater divergence within Europe resulted in a further decline in unemployment in Germany and an alarmingly rapid rise in unemployment in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. Market performance was consequently dictated in 2012 by volatile sentiment. During the first three months the markets were buoyed by relative economic optimism. After the market eased in April and May, a fine rally was built up from early June onwards, in disregard of the worsening economic signals. On 31 December the MSCI All Countries (the broadest world index) in euros was 14.5% higher than at the end of 2011. Among the traditional markets, Western Europe (MSCI Europe index return for the same period +18.4%) managed to offset some of the underperformance built up since the euro crisis flared up in autumn 2009, despite the continuing influence of certain problem files. Evidently the underperformance of European shares had seen such a valuation gap open up against US shares that new episodes in the euro crisis lacked the same impact on the trading floor. Wall Street closed the year up substantially up on balance (S&P500: +13.4%, Dow Jones: +7.3%), while European investors also benefited from the small increase in value of the dollar (MSCI USA return in euros: +13.9%). The BEL 20 rose by 18.8%, more or less in line with the performance of other European stock markets. The Belgian banking stocks KBC and Ageas did the best, while Solvay and AB InBev, which has taken over the Mexican market leader Modelo, were once again star performers. D’Ieteren, Mobistar and especially Delhaize, which is grappling with structural problems in its two main markets, were the most important underperformers during the period under review.

2.1.8 FUTURE POLICY In Europe the budgetary plans, the banks' tighter lending policy and the high level of uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could therefore see a further contraction in European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. The crisis has also brought the realisation that economic governance, as it is now called in Eurospeak, needs to be tackled as a matter of urgency. In concrete terms, this involves measures such as supranational supervision of banks, strict monitoring and sanctioning of budgetary policy, monitoring of pay policy and harmonising European taxation. During the coming months the organisation of the ESM (European Stability Mechanism, which came into operation from 1 October 2012) the installation of the pan-European banking supervision within the ECB (to be in place by 1 March 2014) and the implementation of the Fiscal Stability Treaty (in force since 1 January 2013) will continue to demand considerable energy and diplomatic dexterity. No delays can be permitted in this work to set up a new architecture for the EMU. Since it may be argued that money market rates will not rise rapidly and that bond rates are at an historical low, everything would appear to point to equities as the most interesting investment alternative in the coming months. The lack of alternatives is not, of course, sufficient reason to increase the market valuation. For that to happen, investors will need to be more predisposed to taking risk. The present valuation prices in very gloomy scenarios. Based on forecast earnings for 2013, the price/earnings ratio (PE) is 13.5 for the US S&P 500 index and 11.4 for the MSCI Europe. That is 25% and 30% respectively lower than the historical average. Equities are certainly dirt-cheap compared with bonds. The earnings yield – the inverse of the price/earnings ratio – is currently 8.7% for the MSCI Europe, an unprecedented premium of some 740 basis points above German bond yields.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 24.308.244,90 26.635.216,35

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 534.411,29 274.414,43 C. Shares and similar instruments a) Shares 24.545.982,18 26.829.179,28 Of which securities lent 480.301,02 287.503,23 D. Other securities 2.239,20

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 8.049,88 1.280,58 b) Tax assets 12.222,58 7.711,68 B. Payables a) Accounts payable (-) -37.328,22 -48.559,18 c) Borrowings (-) -238.075,35 -247.935,19 d) Collateral (-) -534.411,29 -274.414,43

V. Deposits and cash at bank and in hand A. Demand balances at banks 11.300,97 11.114,59

VI. Accruals and deferrals A. Expense to be carried forward 1.306,00 B. Accrued income 62.793,91 134.251,11 C. Accrued expense (-) -56.701,05 -55.371,72

TOTAL SHAREHOLDERS' EQUITY 24.308.244,90 26.635.216,35

A. Capital 21.990.853,43 25.772.156,07

B. Income equalization -52.888,55 -33.494,58

C. Profit(Loss) carried forward 753.468,33 4.905.818,32

D. Result for the period 1.616.811,69 -4.009.263,46

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 534.411,29 274.414,43

IX Financial instruments lent 480.301,02 287.503,23

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 471.297,03 -4.330.018,90 D. Other securities -0,04 5.574,44 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 408.463,03 -108.152,17

II. Investment income and expenses A. Dividends 1.150.037,86 1.054.408,67 B. Interests a) Securities and money market instruments 16.038,45 21.504,20 b) Cash at bank and in hand and deposits 94,84 550,65 C. Interest on borrowings (-) -841,30 -1.593,36

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

0,46 18,79

B. Other 851,50

IV. Operating expenses A. Investment transaction and delivery costs (-) -4.183,38 -125.646,11 B. Financial expenses (-) -415,80 -2.847,89 C. Custodian's fee (-) -22.734,01 -26.671,61 D. Manager's fee (-) a) Financial management Classic Shares -346.214,79 -393.033,60 Institutional B Shares -87,69 -7,28 b) Administration and accounting management -24.663,98 -30.423,86 E. Administrative expenses (-) -511,20 -574,58 F. Formation and organisation expenses (-) -2.177,53 -44.276,67 G. Remuneration, social security charges and

pension -6,73

H. Services and sundry goods (-) -5.081,56 301,21 J. Taxes Classic Shares -20.365,74 -21.634,36 Institutional B Shares -0,61 -0,54 K. Other expenses (-) -1.842,35 -7.585,26

Income and expenditure for the period Subtotal II + III + IV 737.051,67 423.333,17

V. Profit (loss) on ordinary activities before tax 1.616.811,69 -4.009.263,46

VII. Result for the period 1.616.811,69 -4.009.263,46

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 2.317.391,47 863.060,28 Profit (loss) brought forward from the previous

financial year 753.468,33 4.905.818,32

Profit for the period available for appropriation 1.616.811,69 -4.009.263,46 Income on the creation of shares (income on the

cancellation of shares) -52.888,55 -33.494,58

II. (Appropriations to) Deductions from capital -2.166.786,05

III. Profit (loss) to be carried forward 753.468,33

IV. (Dividends to be paid out) -150.605,42 -109.591,95

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND EURO TELECOM & TECHNOLOGY

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Austria

TELEKOM AUSTRIA AG (WIEN) 10.286,00 EUR 5,740 59.041,64 0,24 0,24

Belgium

BELGACOM - 12.100,00 EUR 22,205 268.680,50 1,10 1,11

MOBISTAR - 2.028,00 EUR 19,390 39.322,92 0,16 0,16

REALDOLMEN STRIP-VVPR 66,00 EUR 0,001 0,07

ZENITEL (BRU)STRIP-VVPR 35.000,00 EUR 0,001 35,00

Denmark

TDC AS "B" 29.571,00 DKK 40,040 158.694,93 0,65 0,65

Finland

ELISA OYJ (HEL) "A" 14.258,00 EUR 16,730 238.536,34 0,97 0,98

NOKIA "A" 138.734,00 EUR 2,926 405.935,68 1,65 1,67

France

ALCATEL-LUCENT - 33.310,00 EUR 1,003 33.409,93 0,14 0,14

ATOS SA - 1.796,00 EUR 52,860 94.936,56 0,39 0,39

CAP GEMINI SOGETI - 5.485,00 EUR 32,860 180.237,10 0,73 0,74

DASSAULT SYSTEMES - 3.085,00 EUR 84,230 259.849,55 1,06 1,07

EUTELSAT - 4.331,00 EUR 25,100 108.708,10 0,44 0,45

FRANCE TELECOM - 95.519,00 EUR 8,339 796.532,94 3,25 3,28

ILIAD SA - 2.078,00 EUR 130,050 270.243,90 1,10 1,11

JC DECAUX SA - 1.960,00 EUR 17,985 35.250,60 0,14 0,15

LAGARDERE S.C.A. - 2.872,00 EUR 25,285 72.618,52 0,30 0,30

NEOPOST SA - 163,00 EUR 40,000 6.520,00 0,03 0,03

PUBLICIS GROUPE SA - 5.501,00 EUR 45,250 248.920,25 1,01 1,02

STMICROELECTRONICS NV - 18.698,00 EUR 5,368 100.370,86 0,41 0,41

VIVENDI - 63.592,00 EUR 16,950 1.077.884,40 4,39 4,43

Germany

AXEL SPRINGER AG - 1.518,00 EUR 32,285 49.008,63 0,20 0,20

DEUTSCHE TELEKOM INT FIN REG 141.424,00 EUR 8,595 1.215.539,28 4,95 5,00

INFINEON TECHNOLOGIES AG - 37.981,00 EUR 6,129 232.785,55 0,95 0,96

KABEL DEUTSCHLAND HOLDING AG - 4.201,00 EUR 56,570 237.650,57 0,97 0,98

SAP AG - 39.077,00 EUR 60,690 2.371.583,13 9,66 9,76

UNITED INTERNET AG - 4.746,00 EUR 16,310 77.407,26 0,32 0,32

Italy

TELECOM ITALIA (MIL) 403.019,00 EUR 0,683 275.261,98 1,12 1,13

TELECOM ITALIA (MIL) DI RISPARMIO NWE 336.455,00 EUR 0,598 201.031,86 0,82 0,83

Luxembourg

MILLICOM INTL. CELLULAR - 3.746,00 SEK 562,500 245.677,29 1,00 1,01

SES GLOBAL - 14.566,00 EUR 21,705 316.155,03 1,29 1,30

Netherlands

ASML HOLDING NV - 15.097,00 EUR 48,000 724.656,00 2,95 2,98

KONINKLIJKE KPN NV - 51.944,00 EUR 3,716 193.023,90 0,79 0,79

REED ELSEVIER NV - 36.050,00 EUR 11,185 403.219,25 1,64 1,66

WOLTERS KLUWER - 11.702,00 EUR 15,475 181.088,45 0,74 0,75

Norway

TELENOR A/S - 38.794,00 NOK 112,200 593.235,40 2,42 2,44

Portugal

PORTUGAL TELECOM INT FIN - 32.239,00 EUR 3,749 120.864,01 0,49 0,50

Spain

AMADEUS IT HOLDING SA - 15.230,00 EUR 19,050 290.131,50 1,18 1,19

TELEFONICA SA - 174.715,00 EUR 10,190 1.780.345,85 7,25 7,32

Sweden

ERICSSON "B" 138.377,00 SEK 65,100 1.050.315,12 4,28 4,32

HEXAGON AB -B- 3.943,00 SEK 163,100 74.981,73 0,31 0,31

TELE2 AB "B" 19.573,00 SEK 117,100 267.232,34 1,09 1,10

TELIASONERA AB - 126.855,00 SEK 44,060 651.668,61 2,66 2,68

Switzerland

SWISSCOM AG - 1.917,00 CHF 393,800 625.550,71 2,55 2,57

U.K.

ARM HOLDG - 71.478,00 GBP 7,680 676.798,22 2,76 2,78

BRITISH SKY BROADCAST - 74.098,00 GBP 7,670 700.692,47 2,86 2,88

BT GROUP PLC - 450.429,00 GBP 2,311 1.283.370,01 5,23 5,28

INMARSAT PLC - 31.081,00 GBP 5,845 223.977,86 0,91 0,92

ITV PLC - 222.274,00 GBP 1,052 288.290,28 1,17 1,19

PEARSON PLC - 57.018,00 GBP 11,880 835.129,87 3,40 3,44

REED ELSEVIER PLC - 95.332,00 GBP 6,420 754.569,65 3,07 3,10

SAGE GROUP - 109.455,00 GBP 2,943 397.147,16 1,62 1,63

VODAFONE GROUP PLC - 1.008.275,00 GBP 1,545 1.919.961,46 7,82 7,90

WPP GROUP PLC - 75.986,00 GBP 8,880 831.901,96 3,39 3,42

Total shares 24.545.982,18 100,00 100,98

TOTAL SECURITIES PORTFOLIO 24.545.982,18 100,00 100,98

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 534.411,29 EUR 1,000 534.411,29 2,20

TOTAL RECEIVED COLLATERAL 534.411,29 2,20

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CHF 43,88 CHF 1,000 36,36

KBC GROUP DKK 8.161,56 DKK 1,000 1.093,90 0,01

KBC GROUP EURO -238.075,35 EUR 1,000 -238.075,35 -0,98

KBC GROUP GBP 2.220,49 GBP 1,000 2.737,63 0,01

KBC GROUP HUF 617,17 HUF 1,000 2,12

KBC GROUP NOK 189,87 NOK 1,000 25,88

KBC GROUP SEK 62.707,61 SEK 1,000 7.311,31 0,03

KBC GROUP USD 123,62 USD 1,000 93,77

Total demand accounts -226.774,38 -0,93

TOTAL CASH AT BANK AND IN HAND -226.774,38 -0,93

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 8.049,88 EUR 1,000 8.049,88 0,03

KBC GROUP WHT TO BE RECOVERED EUR 12.222,58 EUR 1,000 12.222,58 0,05

Total receivables 20.272,46 0,08

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -534.411,29 EUR 1,000 -534.411,29 -2,20

KBC GROUP EUR PAYABLE -37.328,22 EUR 1,000 -37.328,22 -0,15

Payables -571.739,51 -2,35

TOTAL RECEIVABLES AND PAYABLES -551.467,05 -2,27

OTHER

Interest receivable EUR 57.308,99 0,24

Accrued interest EUR 5.484,92 0,02

Expenses payable EUR -56.701,05 -0,23

TOTAL OTHER 6.092,86 0,03

TOTAL NET ASSETS 24.308.244,90 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 0,00 0,65 0,59 0,24 Belgium 0,02 1,73 1,41 1,25 Switzerland 0,00 2,30 2,48 2,55 Germany 31,04 14,11 15,50 17,05 Denmark 0,00 0,68 0,66 0,65 Spain 3,17 9,87 8,76 8,44 Finland 10,72 3,39 2,06 2,63 France 17,27 13,71 13,53 13,39 U.K. 11,15 30,19 32,23 32,21 Greece 0,00 0,07 0,06 0,00 Italy 0,00 2,68 2,30 1,94 Luxembourg 0,00 2,22 2,38 2,29 Netherlands 7,01 7,58 7,67 6,12 Norway 0,38 1,95 2,07 2,42 Portugal 0,02 0,65 0,45 0,49 Sweden 19,22 8,22 7,85 8,33 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 0,38 0,17 0,22 0,31 Consum(cycl) 0,02 20,29 21,68 24,58 Technology 99,60 25,77 26,63 29,22 Telecomm. 0,00 53,77 51,47 45,89 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CHF 0,00 2,32 2,51 2,57 DKK 0,00 0,69 0,67 0,66 EUR 69,14 54,96 52,74 52,31 GBP 11,19 30,50 32,73 32,57 NOK 0,38 1,97 2,10 2,44 SEK 19,29 9,56 9,25 9,45 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND EURO TELECOM &

TECHNOLOGY (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 220.744,88 2.612,40 223.357,28 Sales 1.820.446,05 1.571.708,99 3.392.155,04 Total 1 2.041.190,93 1.574.321,39 3.615.512,32 Subscriptions 195.299,79 246.849,34 442.149,13 Redemptions 2.445.179,20 1.785.995,46 4.231.174,66 Total 2 2.640.478,99 2.032.844,80 4.673.323,79 Monthly average of total assets

25.268.153,01 24.826.700,08 25.042.921,92

Turnover rate -2,37 % -1,85 % -4,22 %

1st half of year 2nd half of year YearPurchases 220.744,88 2.612,40 223.357,28 Sales 1.820.446,05 1.571.708,99 3.392.155,04 Total 1 2.041.190,93 1.574.321,39 3.615.512,32 Subscriptions 195.299,79 246.849,34 442.149,13 Redemptions 2.445.179,20 1.785.995,46 4.231.174,66 Total 2 2.640.478,99 2.032.844,80 4.673.323,79 Monthly average of total assets

24.371.210,21 24.019.036,46 24.222.840,97

Corrected turnover rate -2,46 % -1,91 % -4,37 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 534.411,29 534.411,29 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 10.108,75 2.992,66 20.278,96 9.419,00 110.958,82 33.953,66 144.912,48

2011 - 12 1.548.586,48 267.648,32 1.428.954,22 229.973,26 230.591,08 71.628,72 302.219,80

2012 - 12 3.902,63 1.046,63 36.012,04 11.748,37 198.481,67 60.926,99 259.408,65

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 966.618,14 270.979,72 1.919.515,68 841.181,49

2011 - 12 2.686.337,20 722.037,71 213.572.709,62 37.195.783,57

2012 - 12 359.526,40 89.546,60 3.291.664,92 998.525,21

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 14.423.285,78 100,86 95,17

2011 - 12 26.628.785,59 89,37 84,07

2012 - 12 24.301.949,73 95,39 88,13

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 72,00 0,00 72,00 72,00

2012 - 12 0,00 6,00 66,00 66,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 6.265,44 0,00

2012 - 12 0,00 549,62

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 6.430,76 89,32

2012 - 12 6.295,16 95,38

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0173086381 EUR 6.41% 2.36% -7.26% 0.0365 28/01/2000 -12.05%

DIV BE0173085375 EUR 6.40% 2.36% -7.26% 0.0364 28/01/2000 -12.05%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228929749 EUR 6.47% 24/11/2011 5.26%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 1.85 EUR net (2.47 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.707% Classic Shares Capitalization: 1.702% Institutional B Shares Capitalization: 1.604% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CSFBSAS 373 181 48.43%

MORGAN STANLEY 906 512 56.56%

NOMURA 286 149 52.25%

UBSWDR 249 138 55.55%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 8.361,38 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ALCATEL-LUCENT EUR 33.309 1,003 33.408,93

NOKIA CORP -A- EUR 138.733 2,926 405.932,76

TELE2 -B- SEK 3.000 117,100 40.959,33

Total 480.301,02

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 4.000 EUR 4.887,22

FRANCE 2003 2,25% 25/07/2020 EUR 96.000 EUR 139.685,09

OAT FRANCE 2003 4% 25/04/14 EUR 23.000 EUR 24.833,40

FRANCE 2004 1,60% 25/07/2015 EUR 109.000 EUR 140.065,22

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 202.000 EUR 222.699,34

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 2.000 EUR 2.241,03

Total 534.411,30 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Euro Finance

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND EURO FINANCE

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 31 May 2000 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 194.92 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED

At least 75% of the assets are invested in shares of European companies in the financial sector.

RISK CONCENTRATION European financial sector shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate throughout 2012. The debt crisis in Europe continued to rage unabated. Five euro countries requested a bailout from the European emergency fund. Greece reached agreements with its private sector creditors on two occasions in the span of one year on restructuring the bond debt it owes them. Spain found itself in the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the existence of the euro was not at issue.

A new feature of this crisis compared to previous ones is that government paper, which had previously been seen as entirely risk-free, also started to be tainted with a degree of credit risk. What started as an isolated problem on the periphery of the euro area developed into an issue concerning the credibility of the monetary union and its institutions. In autumn 2009 – three years ago already – it became clear that Greece's official statistics had painted a highly flattering picture of its public finances; as a result, bond investors lost confidence and many refused to continue to fund Greece. After Greece had elaborated its own bailout programme (April 2010), it rapidly became clear that the EMU needed a structured bailout framework. This initially took the form of the European Financial Stability Facility (EFSF, May 2010) and from 1 October 2012 the permanent European Stability Mechanism (ESM), a fully-fledged supranational institution with its own legal personality. The Greek debacle and lack of political consensus on a blueprint for a renewed currency union continued to fuel mistrust among bond investors. Ireland (November 2010), Portugal (April 2011), once again Greece (July 2011), Cyprus (June 2012) and Spain (with the bailout fund for the banks in June 2012) had to concede that they were no longer able to raise funds in the market and took shelter under the European umbrella. The support of Europe (and the IMF) is dependent on strict austerity policies, which are periodically reviewed. The Greek government's first, rather draconian, austerity plan was not stringent enough and came up against much political opposition. The period July 2011 – May 2012 was one of complete political chaos. In March 2012 agreement on debt restructuring was concluded with private bondholders, under which Greece was able to eliminate more than 100 billion euros in debt. In December 2012 the European partners relaxed the interest and repayment terms on bailout fund loans to Greece. As a result of all these operations Greece's debt ratio remained sky-high (190% of GDP at the end of 2012), but the financing burden has become appreciably more realistic and there has been a marked change in bond ownership patterns: over 80% of Greek debt is now held by the public sector (European governments, central banks and the IMF). Speculation concerning the Greek exit from the EMU has dried up. In the course of 2012 the markets shifted their attention from Greece to Spain. The Spanish government has already drawn on the EFSF for the recapitalisation of its banks. In the meantime other problems are also attracting attention: the recession is deeper than had been thought, the austerity policy was already revised as many as four times in the course of 2012 and regional finances are seriously dislocated. In a lengthy address on 3 August, Prime Minister Mariano Rajoy once again emphasised the severity of the situation and drew the attention of the Spanish people to their responsibilities, while also not ruling out immediate co-operation with the EFSF. By the end of the period under review, no formal application for aid had, however, been filed. As traditionally faithful investors in government bonds, the European banks, which had seen their capital base seriously eroded in the 2008/09 credit crisis, were oversensitive to the consequences of the euro crisis and the write-downs on their bond portfolios. The euro crisis could therefore easily end up as a systemic crisis. Avoiding this provided the driver for the European Central Bank (ECB) to intervene actively, especially by buying Spanish and Italian government paper. After Draghi took over from Trichet at the ECB, the heavy artillery was brought in. In December 2011 and in February 2012, two LTRO programmes were launched under which banks were able to borrow on extremely favourable conditions for a term of 36 months. Funds totalling 1 000 billion euros were borrowed, to be invested primarily in Spanish and Italian bonds. In September the ECB introduced its bazooka in the form of Outright Monetary Transactions (OMT). The ECB expressed its willingness to buy up troubled government debt with maturities of up to three years for an unlimited period and in unlimited quantities, provided a number of conditions have been met. The most important of these is that the government in question submits a formal request for a bailout under the ESM. For this reason the OMT programme has so far been unable to start up. The financial markets have not been disturbed by this. For them the setting up of the European bazooka was enough in itself to regard the euro crisis as having been definitively averted. Increasing doubts about the economy and the ongoing euro crisis have pushed US and German bond rates down since March 2011. This trend was sustained in 2012. On 1 June, the US and German ten-year rates hit lows of 1.45% and 1.15%, respectively. Despite the difficulties referred to above, Financials were among the best-performing sectors. The outperformance of the Banks is no doubt associated with the quantitative easing programmes undertaken by the central banks. The announcement of OMT by the ECB eased the pressure of the euro crisis.

2.1.8 FUTURE POLICY We expect that in Europe budgetary plans, tighter lending policy of the banks and major uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could therefore see a contraction of European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. However, time is of the essence for the euro area. Everyone knows that the EMU is not a perfect monetary union. In its twelve-year history, little has been done to improve its internal operation. National autonomy was off-limits. The crisis brought the realisation that economic governance, as it is now called in Eurospeak, needs to be tackled as a matter of urgency. In concrete terms, this involves measures such as supranational supervision of banks, strict monitoring and sanctioning of budgetary policy, monitoring of pay policy and harmonising European taxation. In the coming months the organisation of the ESM (European Stability Mechanism, which came into operation on 1 October 2012), the installation of the pan-European banking supervision within the ECB (to be in place by 1 March 2014) and the implementation of the Fiscal Stability Treaty (in force since 1 January 2013) will continue to demand considerable energy and diplomatic dexterity. Work on a new architecture for the EMU cannot be postponed, even though the European leaders are having to turn their attention from one emergency to another, which is not conducive to a calm climate for negotiations. The capital base of banks will need to be strengthened further to ensure the stability of the financial system, so that there is a sufficient buffer for reserves and to offset unforeseen write-downs. That will be just as important in 2013 – and probably after that too – as it was in 2011 or 2012. All the measures required to achieve this are being taken. Examples include the almost 2 000 billion euros that were set aside in the space of two years in order to ensure the smooth funding of European governments, the introduction of stress tests to establish whether the banks have sufficient capital to cope with a new and serious crisis, the gradual introduction of new and/or stricter capital requirements under Basel III and making the reserves of the ESM available for direct loans to ailing European banks. There is a chance that volatility might return to the financial sector. We will therefore compose the fund’s defensive aspect by investing within the insurance sector in reinsurers and non-life insurers. We anticipate positive returns – also after the recent rally – in the medium term if financial service providers manage to record a somewhat more normal return on equity, and if European policymakers can finally achieve lasting solutions in terms of reorganising public-sector finances.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 22.302.381,48 17.207.831,10

II. Securities, money market instruments, UCIs and derivatives

C. Shares and similar instruments a) Shares 21.742.866,49 16.924.185,96 D. Other securities 0,02 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -1.524,41

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 25.829,52 2.896,47 b) Tax assets 7.005,18 7.947,02 B. Payables a) Accounts payable (-) -30.610,17 -16.835,02

V. Deposits and cash at bank and in hand A. Demand balances at banks 578.371,16 273.953,19

VI. Accruals and deferrals A. Expense to be carried forward 2.214,02 B. Accrued income 10.444,07 38.441,06 C. Accrued expense (-) -31.524,79 -23.447,19

TOTAL SHAREHOLDERS' EQUITY 22.302.381,48 17.207.831,10

A. Capital 10.895.640,08 11.583.019,52

B. Income equalization -2.485,35 -54.462,51

C. Profit(Loss) carried forward 5.573.595,08 10.590.127,33

D. Result for the period 5.835.631,67 -4.910.853,24

Off-balance-sheet headings

III Notional amounts of futures and forward contracts

III.B Written futures and forward contracts -77.436,36

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 5.243.297,36 -5.230.842,29 D. Other securities -15.953,99 -56.838,18 F. Derivative financial instruments l) Financial indices Option contracts 4.200,00 Futures and forward contracts 78.675,00 152.924,97 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts 1.524,41 -1.524,41 b) Other foreign exchange positions and

transactions 326.470,68 -94.640,50

II. Investment income and expenses A. Dividends 546.829,37 841.470,05 B. Interests a) Securities and money market instruments -2.076,13 39.966,40 b) Cash at bank and in hand and deposits 3.972,85 3.677,68 C. Interest on borrowings (-) -195,00 -6.950,27

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

1.293,93 34,92

B. Other 1.669,62

IV. Operating expenses A. Investment transaction and delivery costs (-) -19.145,59 -46.209,38 B. Financial expenses (-) -253,82 -1.789,26 C. Custodian's fee (-) -15.734,62 -44.432,81 D. Manager's fee (-) a) Financial management Classic Shares -267.917,36 -413.072,90 Institutional B Shares -2.031,48 -1.122,14 b) Administration and accounting management -19.188,84 -22.565,58 E. Administrative expenses (-) -185,25 -207,08 F. Formation and organisation expenses (-) -1.577,98 -3.002,58 G. Remuneration, social security charges and

pension -5,04

H. Services and sundry goods (-) -3.977,12 -6.624,27 J. Taxes Classic Shares -17.925,69 -15.274,68 Institutional B Shares -103,15 639,40 K. Other expenses (-) -4.365,91 -6.134,91

Income and expenditure for the period Subtotal II + III + IV 197.418,21 320.067,17

V. Profit (loss) on ordinary activities before tax 5.835.631,67 -4.910.853,24

VII. Result for the period 5.835.631,67 -4.910.853,24

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 11.406.741,40 5.624.811,58 Profit (loss) brought forward from the previous

financial year 5.573.595,08 10.590.127,33

Profit for the period available for appropriation 5.835.631,67 -4.910.853,24 Income on the creation of shares (income on the

cancellation of shares) -2.485,35 -54.462,51

II. (Appropriations to) Deductions from capital -11.370.337,63

III. Profit (loss) to be carried forward 5.573.595,08

IV. (Dividends to be paid out) -36.403,77 -51.216,50

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND EURO FINANCE

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Austria

VIENNA INSURANCE GROUP - 2.000,00 EUR 40,375 80.750,00 0,37 0,36

Belgium

AGEAS NV (BRU) B STRIP-VVPR 2.666,00 EUR 0,001 2,67

AGEAS NV - 11.000,00 EUR 22,215 244.365,00 1,12 1,10

KBC ANCORA - 6.000,00 EUR 12,950 77.700,00 0,36 0,35

KBC GROUP - 7.000,00 EUR 26,150 183.050,00 0,84 0,82

Bulgaria

ELANA HOLDING ELANA AGRICULTURE LAND OPP FUND 26.481,00 BGN 2,290 31.007,56 0,14 0,14

Cyprus

BANK OF CYPRUS PUBLIC CO LTD - 10.000,00 EUR 0,255 2.550,00 0,01 0,01

Denmark

DANSKE BK AS - 8.804,00 DKK 95,650 112.867,26 0,52 0,51

Finland

SAMPO OYJ SAMPO OYJ 8.600,00 EUR 24,340 209.324,00 0,96 0,94

France

AXA - 46.000,00 EUR 13,350 614.100,00 2,82 2,75

BNP PARIBAS - 17.000,00 EUR 42,585 723.945,00 3,33 3,25

CNP ASSURANCE (PAR) 4.000,00 EUR 11,605 46.420,00 0,21 0,21

NATIXIS (PAR) 40.000,00 EUR 2,550 102.000,00 0,47 0,46

RODAMCO UNIBAIL - 1.363,00 EUR 181,950 247.997,85 1,14 1,11

SCOR REGROUPE (PAR) 9.375,00 EUR 20,410 191.343,75 0,88 0,86

SOCIETE GENERALE - 22.000,00 EUR 28,340 623.480,00 2,87 2,80

Germany

ALLIANZ AG REG 8.500,00 EUR 104,800 890.800,00 4,10 3,99

COMMERZBANK AG - 130.000,00 EUR 1,434 186.420,00 0,86 0,84

DEUTSCHE BANK AG REG 16.500,00 EUR 32,950 543.675,00 2,50 2,44

DEUTSCHE BOERSE AG - 7.201,00 EUR 46,210 332.758,21 1,53 1,49

HANNOVER RUCKVERSICHERUNG AG (FRA) NAAM 3.459,00 EUR 58,960 203.942,64 0,94 0,91

MUNCHENER RUCKVERSICHERUNG AG REG 3.879,00 EUR 136,000 527.544,00 2,43 2,37

Ireland

ALLIED IRISH BANKS PLC - 100.000,00 EUR 0,050 5.000,00 0,02 0,02

PERMANENT TSB GROUP HOLDINGS P - 373.367,00 EUR 0,022 8.064,73 0,04 0,04

Italy

ASSICURAZIONI GENERALI - 10.000,00 EUR 13,740 137.400,00 0,63 0,62

AZIMUT HOLDING SPA - 19.515,00 EUR 10,850 211.737,75 0,97 0,95

INTESA SANPAOLO SPA (MIL) RSNC 40.000,00 EUR 1,067 42.680,00 0,20 0,19

INTESA SANPAOLO SPA - 200.000,00 EUR 1,300 260.000,00 1,20 1,17

MEDIOBANCA (MIL) 35.000,00 EUR 4,662 163.170,00 0,75 0,73

MEDIOLANUM SPA (MIL) 20.000,00 EUR 3,834 76.680,00 0,35 0,34

UNICREDIT SPA - 79.300,00 EUR 3,706 293.885,80 1,35 1,32

Jersey/The Channel Islands

BEAZLEY PLC - 100.000,00 GBP 1,769 218.098,88 1,00 0,98

Netherlands

AEGON - 44.383,00 EUR 4,803 213.171,55 0,98 0,96

DELTA LLOYD - 15.000,00 EUR 12,335 185.025,00 0,85 0,83

ING GROEP NV - 115.000,00 EUR 7,061 812.015,00 3,74 3,64

Norway

ABG SUNDAL COLLIER HOLDINGS ASA - 96.206,00 NOK 4,300 56.381,97 0,26 0,25

DNB ASA - 28.000,00 NOK 70,400 268.658,34 1,24 1,21

STOREBRAND ASA - 35.000,00 NOK 26,820 127.937,09 0,59 0,57

Russia

SBERBANK OF RUSSIA ADR 23.842,00 USD 12,300 222.433,71 1,02 1,00

Spain

BANCO BILBAO VIZCAYA ARGENTARIA - 73.000,00 EUR 6,960 508.080,00 2,34 2,28

BANCO SANTANDER CENTRAL HISPANO SA - 187.937,00 EUR 6,100 1.146.415,70 5,27 5,14

CORPORACION MAPFRE SA (MAD) 3.684,00 EUR 2,315 8.528,46 0,04 0,04

Sweden

EAST CAPITAL EXPLORER AB - 13.301,00 SEK 49,000 75.989,76 0,35 0,34

KINNEVIK INVESTMENT AB -B- 15.000,00 SEK 135,700 237.326,28 1,09 1,06

NORDEA BANK AB - 27.671,00 SEK 62,100 200.350,84 0,92 0,90

SWEDBANK - 9.000,00 SEK 127,000 133.266,49 0,61 0,60

Switzerland

CS GROUP REG 31.080,00 CHF 22,260 573.285,38 2,64 2,57

EFG INTERNATIONAL - 4.978,00 CHF 8,900 36.712,13 0,17 0,17

GOTTEX FUND MANAGEMENT HOLDING - 8.504,00 CHF 2,770 19.519,46 0,09 0,09

SWISS RE - 7.600,00 CHF 65,900 415.014,92 1,91 1,86

U.B.S. REG 76.000,00 CHF 14,270 898.674,18 4,13 4,03

ZURICH INSURANCE GROUP AG - 2.202,00 CHF 243,400 444.122,31 2,04 1,99

Turkey

ANADOLU HAYAT EMEKLILIK - 90.000,00 TRY 4,210 161.028,47 0,74 0,72

TEKFEN HOLDINGS AS - 40.000,00 TRY 7,240 123.076,92 0,57 0,55

U.K.

ABERDEEN ASSET MGMT PLC - 30.000,00 GBP 3,671 135.778,57 0,62 0,61

AVIVA PLC - 100.000,00 GBP 3,730 459.869,31 2,12 2,06

BARCLAYS BANK PLC - 320.000,00 GBP 2,624 1.035.236,10 4,76 4,64

BRITISH LAND CO LTD - 20.000,00 GBP 5,620 138.577,24 0,64 0,62

HSBC HOLDING PLC - 270.000,00 GBP 6,469 2.153.408,95 9,91 9,66

LEGAL & GENERAL GROUP PLC - 133.232,00 GBP 1,456 239.163,84 1,10 1,07

LLOYDS BANKING GROUP PLC - 900.000,00 GBP 0,479 531.666,87 2,45 2,38

LONDON STOCK EXCHANGE GRP PLC - 15.000,00 GBP 10,880 201.208,24 0,93 0,90

MAN GROUP PLC - 38.432,00 GBP 0,828 39.209,07 0,18 0,18

NOVAE GROUP PLC - 30.786,00 GBP 3,969 150.637,33 0,69 0,68

PRUDENTIAL PLC - 60.000,00 GBP 8,655 640.241,65 2,95 2,87

ROYAL & SUN ALLIANCE INS. - 70.000,00 GBP 1,257 108.482,31 0,50 0,49

ROYAL BANK OF SCOTLAND GROUP PLC - 75.000,00 GBP 3,245 300.055,48 1,38 1,35

SONGBIRD ESTATES PLC - 70.000,00 GBP 1,190 102.700,04 0,47 0,46

STANDARD CHARTERED - 41.529,00 GBP 15,735 805.645,19 3,71 3,61

3IGROUP - 90.077,00 GBP 2,172 241.212,24 1,11 1,08

Total shares 21.742.866,49 100,00 97,49

Rights

Sweden

EAST CAPITAL EXPLORER AB CP 07/12/12 13.301,00 SEK 0,000 0,02

Total rights 0,02

TOTAL SECURITIES PORTFOLIO 21.742.866,51 100,00 97,49

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CHF 18.529,79 CHF 1,000 15.354,48 0,07

KBC GROUP DKK 4.156,46 DKK 1,000 557,09 0,00

KBC GROUP EURO 486.942,18 EUR 1,000 486.942,18 2,18

KBC GROUP GBP 32.497,34 GBP 1,000 40.065,76 0,18

KBC GROUP HUF 15.049,91 HUF 1,000 51,68

KBC GROUP NEW BULGAARSE LEVA 42.301,66 BGN 1,000 21.629,93 0,10

KBC GROUP NOK 68.302,07 NOK 1,000 9.309,01 0,04

KBC GROUP SEK 2.618,26 SEK 1,000 305,27 0,00

KBC GROUP TRY 2.800,63 TRY 1,000 1.190,24 0,01

KBC GROUP USD 3.909,74 USD 1,000 2.965,52 0,01

Total demand accounts 578.371,16 2,59

TOTAL CASH AT BANK AND IN HAND 578.371,16 2,59

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 25.829,52 EUR 1,000 25.829,52 0,12

KBC GROUP WHT TO BE RECOVERED EUR 7.005,18 EUR 1,000 7.005,18 0,03

Total receivables 32.834,70 0,15

Payables

Belgium

KBC GROUP EUR PAYABLE -30.610,17 EUR 1,000 -30.610,17 -0,14

Payables -30.610,17 -0,14

TOTAL RECEIVABLES AND PAYABLES 2.224,53 0,01

OTHER

Interest receivable EUR 7.418,42 0,03

Accrued interest EUR 3.025,65 0,01

Expenses payable EUR -31.524,79 -0,14

TOTAL OTHER -21.080,72 -0,10

TOTAL NET ASSETS 22.302.381,48 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 0,30 0,36 0,36 0,37 Belgium 2,47 2,65 1,88 2,32 Bulgaria 0,04 0,07 0,15 0,14 Bermuda 0,01 0,00 0,00 0,00 Switzerland 10,44 12,40 10,34 10,98 Cyprus 0,77 0,02 0,02 0,01 Germany 11,08 12,74 11,76 12,35 Denmark 1,65 0,51 0,55 0,52 Spain 8,89 9,16 8,02 7,65 Finland 0,79 0,97 1,00 0,96 France 15,57 12,23 12,16 11,72 U.K. 25,99 29,71 33,90 33,51 Greece 1,43 0,39 0,00 0,00 Ireland 0,10 0,09 0,10 0,06 Italy 7,00 5,74 6,15 5,45 Jersey/The Channel Islands 1,43 1,57 1,17 1,00 Netherlands 4,72 4,42 4,56 5,57 Norway 1,33 1,89 2,13 2,08 Russia 0,67 0,76 0,82 1,02 Sweden 1,97 2,13 3,03 2,98 Turkey 3,35 2,19 1,90 1,31 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 0,76 0,51 0,66 0,57 Financials 97,06 96,93 96,78 97,03 Real est. 1,41 2,54 2,54 2,39 Governm. 0,77 0,02 0,02 0,01 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 BGN 0,13 0,20 0,27 0,24 CHF 10,50 11,76 8,37 10,76 DKK 1,66 0,51 0,54 0,51 EUR 53,41 49,61 48,12 47,45 GBP 27,61 30,87 34,75 33,78 NOK 1,34 1,86 2,15 2,07 SEK 1,98 2,10 3,07 2,90 TRY 3,37 2,16 1,92 1,28 USD 0,00 0,93 0,81 1,01 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND EURO FINANCE (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 2.755.586,58 1.612.767,34 4.368.353,91 Sales 3.422.783,49 1.885.918,96 5.308.702,45 Total 1 6.178.370,07 3.498.686,29 9.677.056,36 Subscriptions 3.078.511,83 2.559.595,70 5.638.107,53 Redemptions 3.755.071,28 2.569.295,90 6.324.367,18 Total 2 6.833.583,11 5.128.891,60 11.962.474,71 Monthly average of total assets

18.757.598,57 20.209.881,91 19.498.559,45

Turnover rate -3,49 % -8,07 % -11,72 %

1st half of year 2nd half of year YearPurchases 2.755.586,58 1.612.767,34 4.368.353,91 Sales 3.422.783,49 1.885.918,96 5.308.702,45 Total 1 6.178.370,07 3.498.686,29 9.677.056,36 Subscriptions 3.078.511,83 2.559.595,70 5.638.107,53 Redemptions 3.755.071,28 2.569.295,90 6.324.367,18 Total 2 6.833.583,11 5.128.891,60 11.962.474,71 Monthly average of total assets

23.325.490,92 21.385.351,00 21.870.032,03

Corrected turnover rate -2,81 % -7,62 % -10,45 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS Nil

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 129.434,33 1.335,58 66.264,12 8.120,52 177.935,62 21.999,07 199.934,69

2011 - 12 31.365,86 942,46 148.533,76 5.580,00 60.767,73 17.361,53 78.129,25

2012 - 12 20.083,86 2.662,28 18.213,45 2.252,00 62.638,14 17.771,81 80.409,95

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 39.721.711,70 330.075,15 20.343.791,81 1.933.440,57

2011 - 12 9.780.665,78 231.992,11 46.661.227,50 1.265.190,61

2012 - 12 5.141.885,00 505.710,69 4.687.689,29 428.054,18

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 59.052.324,77 303,04 233,24

2011 - 12 16.164.344,30 218,50 166,27

2012 - 12 22.302.482,33 293,64 219,98

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 4.859,00 84,00 4.775,00 4.775,00

2012 - 12 84,00 4.859,00 0,00 0,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 1.047.111,70 18.703,67

2012 - 12 20.240,64 1.243.324,52

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 1.043.486,80 218,53

2012 - 12 0,00 0,00

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0174093758 EUR 33.89% -2.46% -10.56% -0.0001 31/05/2000 -4.17%

DIV BE0174092743 EUR 33.85% -2.50% -10.59% -0.0004 31/05/2000 -4.19%

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

Institutional B Shares

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

The bar chart shows the performance for full financial years. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Dividend on ex-dividend date 28/03/2013: 1.54 EUR net (2.05 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.763% Classic Shares Capitalization: 1.758% Institutional B Shares Capitalization: 0.22% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 312 144 46.06%

CSFBSAS 1,620 803 49.59%

DEUTSCHE 396 205 51.60%

EQ CSA MACQUARIE 30 15 50.01%

HSBC 546 184 33.75%

MORGAN STANLEY 675 347 51.48%

NOMURA 255 126 49.56%

UBSWDR 2,263 1,150 50.84%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to -1.409,85 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Global Leaders

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND GLOBAL LEADERS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 1 September 2000 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 223.71 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in a global selection of shares issued by large cap multinationals. The emphasis is on: multinational character, consolidation, market leader and extensive global presence.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR The fund invests in a global portfolio of multinational companies that are characterised by their market leadership and global presence. The universe consists of firms that earn revenue from foreign trade, thus benefiting from international diversification and greater exposure to markets. Equity markets moved considerably higher at the start of 2012. The Fed’s announcement that rates will remain low until at least late 2014, record results from Apple and positive US GDP growth numbers were the key support factors for equity markets. It was not all good news however, as major French banks were downgraded and concerns about the Greek ‘private’ debt restructuring continued to prevail. Into February and after a short pause, markets climbed higher again in the second half of the month. Regionally, the euro area markets strongly outperformed with investors becoming convinced that after two years of crisis, the region has succeeded in isolating the Greek question. The risks of severe damage to the European economy as a whole and for the financial sector in particular fell sharply. Towards the end of the first quarter, positive macroeconomic developments, especially in the US, the successful Greek debt restructuring and the liquidity injection by central banks drove equity markets modestly higher in March. Towards the end of the month, investors’ optimism was tempered by worries over the risks for a hard landing in China and the rise in government bond yields throughout the world. The beginning of the second quarter saw a global pullback on equity markets, prompted by a slowdown in Chinese growth to its lowest level since Q2 2009, poor EU and US economic data and confirmation that the UK and Spain had slide back into recession. The European debt crisis flared up again as yields surged on Spanish bonds, the Dutch government resigned and Presidential Election in France lead to much political uncertainty. Euro area concerns escalated in May as Greek exit fears rose after elections in the country produced a stalemate and the country was unable to form a government. Statements from various European officials alluding to the fact that an exit scenario had been discussed sent markets into a tailspin. Sentiment was further hit when periphery yields spiked after Spain partially nationalized Bankia, Spain’s second largest mortgage lender. As the end of the second quarter approached, equity markets surged on the final trading day of the June after unexpected policy responses from the EU Summit, involving an agreement to use the ESM to recapitalise banks directly and take steps towards banking union soothed market nerves and increased appetite for risk assets. Victory for the pro-EU/Bailout New Democrats in Greece also supported markets. Into the second half of the year main market developments for the quarter saw Central Banks around the world implementing a new round of monetary easing in July to avoid a slide into a fresh recession. The ECB cut each of its key rates by 25 bps, bringing the main refi rate to 0.75% - a record low and the deposit rate to 0%. Later in the month, Draghi’s comments that the “Euro is irreversible” and that the ECB will do whatever it takes to preserve the currency sparked a month-end rally in stocks globally. In the UK, the Bank of England implemented an additional GBP 50 billion of QE while in China, the PBOC cut deposit and lending rates to 3% and 6% respectively. The equity rally ran out of steam in August amid holiday season in Europe and the U.S, with little news or market developments to influence sentiment. In the US, unemployment figures continued to worsen. The Fed’s chief Bernanke hinted that the Fed was willing to provide additional policy stimulus in the near term in order to ‘promote a stronger economic recovery and sustained improvement in labour market conditions’. Overall data releases from China were weak with declining exports, industrial production and manufacturing figures. Global markets had a positive month towards quarter-end buoyed by the ECB decision to allow unlimited purchasing of short-dated bonds (under the Outright Monetary Transactions operation), of countries who have entered fiscal adjustment programmes. Following this, the German court’s decision to back the EU bailout and the announcement from the Fed that it was introducing QE3 boosted investor confidence and lead markets to rally. Into the final quarter of the year and main market developments saw consumer spending, confidence and housing indicators in the U.S remain largely positive, while in Europe the ECB left its main interest rate unchanged at 0.75%. Towards quarter-end the FOMC expanded QE in the US, by adding at additional $45 billion per month of open-ended Treasury security purchases, while the fiscal cliff has been averted by a last minute deal, but with no agreement on the debt ceiling it is likely that this issue will return in the near future. The EU approved the disbursement of the next tranche of Greek aid. The region’s stock markets were buoyed towards the end of the quarter as perceptions grew that the debt crisis had stabilized somewhat.

In terms of the performance of KBC Equity Fund Global Leaders, the first quarter was relatively robust. A rally started in early January and was sustained to quarter end, with the fund gaining in performance terms over the period, slightly ahead of the broad market. The outperformance was mainly due to stock selection within the fund, with positive contributions coming most notably from within the pharmaceuticals and software segments. Overall, the top contributors over the first quarter were Waters Corp, Qualcomm Inc, Citigroup and HSBC. The second quarter however was more volatile and the fund lagged the broad market each month. Stock selection was again the main contributor, albeit in negative terms this time. The holdings in the transportation and technology segments weighed most negatively on performance, due to the lack of exposure to Apple and the overweight position in Qualcomm. Within the transportation group, Expeditors International of Washington plunged during the period, after preliminary results for the first quarter showed earnings below analysts’ expectations, thus disappointing investors. While the fund performed positively in absolute terms over the third quarter, KBC Equity Fund Global Leaders continued to lag the benchmark during this period. Stock selection was again the main driver of the performance similar to the previous quarter. In particular, positions in the capital goods and utilities group weighed negatively on performance over the period. Within the utilities sector, AES Corp was among the main negative contributors to performance, after the power producer reported that 2012 profit would be at the lower end of guidance. On the positive side, the software and service group helped offset some of these losses with Microsoft and SAP both among the top contributors to performance over the period. During the fourth quarter, the fund moved relatively in-line with the benchmark, with the fund ending the quarter with a slight negative performance relative to the benchmark. The best performing sector was information technology, largely down to the fund’s underweight position in Apple, which suffered a large decline in the period. The energy sector, followed by the consumer staples sector were the main underperformers for the fund during the quarter. Within the energy sector, underperformance was driven mainly by the fund’s overweight position in National Oilwell Varco, which declined after the company forecasted a drop in margin in the fourth quarter at its petroleum services and supplies units which is its second largest unit. Within consumer staples, the share price of Philip Morris suffered, after EU regulators proposed stricter tobacco regulation to curb smoking in Europe. While KBC Equity Fund Global Leaders performed positively in absolute terms over the year, it was overall a disappointing year for the fund in relative terms with the fund underperforming the broad market in 2012.

2.1.8 FUTURE POLICY While we expect global growth to be positive looking forward into 2013, developed markets are being highlighted as the point of weakness with only modest expansion expected. We expect positive, albeit modest growth in the US over the coming quarters, with the gradual upturn of the US housing market and a cautious decline in the rate of unemployment. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to contract in the first half of 2013, with no type of recovery expected until at least the second half of the year. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only be a short term solution in advance of the debt ceiling debate to follow in February. In the emerging markets, the scenario is different with economic growth expected to continue in 2013. The strongest growth dynamic is to be found in emerging Asia. While growth is expected to continue in China, as confirmed by sustained improvement in confidence indicators, it may be more modest than in previous years, as policy makers in China as well as the rest of Asia continue to focus on inflationary pressure. In line with the theme, KBC Equity Fund Global Leaders will continue to invest in a global portfolio of multinational companies that are characterised by their market leadership and global presence. We will continue to ensure that the portfolio is diversified, with sector and regional allocation in line with the MSCI World All Countries Index.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 47.814.222,17 91.992.622,04

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 773.265,91 2.607.154,54 C. Shares and similar instruments a) Shares 47.702.121,80 91.233.895,36 Of which securities lent 717.886,18 2.780.195,97 D. Other securities 3.139,17 7.073,66 E. Open-end undertakings for collective investment 135.856,76

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 292.279,75 15.986,16 b) Tax assets 6.214,22 12.686,79 B. Payables a) Accounts payable (-) -35.399,09 -384.846,36 c) Borrowings (-) -222.031,06 d) Collateral (-) -773.265,91 -2.607.154,54

V. Deposits and cash at bank and in hand A. Demand balances at banks 103.050,89 983.558,51

VI. Accruals and deferrals A. Expense to be carried forward 5.191,22 B. Accrued income 56.559,67 141.663,18 C. Accrued expense (-) -91.713,18 -158.443,24

TOTAL SHAREHOLDERS' EQUITY 47.814.222,17 91.992.622,04

A. Capital 25.381.827,70 78.124.765,86

B. Income equalization -446.773,64 -525.425,43

C. Profit(Loss) carried forward 13.803.703,63 33.499.877,09

D. Result for the period 9.075.464,48 -19.106.595,48

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 773.265,91 2.607.154,54

IX Financial instruments lent 717.886,18 2.780.195,97

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 6.767.367,16 -19.285.526,61 D. Other securities -15.318,43 -116.721,17 E. Open-end undertakings for collective investment 15.517,16 -419.078,31 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 1.462.021,74 195.029,51

II. Investment income and expenses A. Dividends 2.305.773,80 2.940.537,95 B. Interests a) Securities and money market instruments 73.883,44 81.366,19 b) Cash at bank and in hand and deposits 8.166,90 28.416,94 C. Interest on borrowings (-) -6.694,55 -6.457,28

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

327.639,35 19.134,89

B. Other 6.911,77

IV. Operating expenses A. Investment transaction and delivery costs (-) -325.034,04 -359.367,47 B. Financial expenses (-) -1.364,29 -3.050,14 C. Custodian's fee (-) -77.879,83 -127.677,97 D. Manager's fee (-) a) Financial management Classic Shares -607.308,02 -1.728.121,17 Institutional B Shares -660.599,99 -55.051,96 b) Administration and accounting management -91.554,07 -123.093,60 E. Administrative expenses (-) -176,07 -186,84 F. Formation and organisation expenses (-) -8.280,06 -13.840,33 G. Remuneration, social security charges and

pension -10,22 -33,61

H. Services and sundry goods (-) -18.847,90 -27.411,06 J. Taxes Classic Shares -31.905,81 -71.456,76 Institutional B Shares -1.415,80 24.960,20 K. Other expenses (-) -38.515,99 -65.878,65

Income and expenditure for the period Subtotal II + III + IV 845.876,85 519.701,10

V. Profit (loss) on ordinary activities before tax 9.075.464,48 -19.106.595,48

VII. Result for the period 9.075.464,48 -19.106.595,48

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 22.432.394,47 13.867.856,18 Profit (loss) brought forward from the previous

financial year 13.803.703,63 33.499.877,09

Profit for the period available for appropriation 9.075.464,48 -19.106.595,48 Income on the creation of shares (income on the

cancellation of shares) -446.773,64 -525.425,43

II. (Appropriations to) Deductions from capital -22.364.235,68

III. Profit (loss) to be carried forward 13.803.703,63

IV. (Dividends to be paid out) -68.158,79 -64.152,55

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND GLOBAL LEADERS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

BHP BILLITON LTD - 9.938,00 AUD 37,100 290.337,66 0,61 0,61

CSL LIMITED - 5.897,00 AUD 53,900 250.293,96 0,53 0,52

NATIONAL AUSTRALIA BANK - 21.884,00 AUD 25,000 430.821,32 0,90 0,90

THE NEWS CORPORATION INC NEW 'A' 11.846,00 USD 25,510 229.210,76 0,48 0,48

VIRGIN MEDIA INC - 9.418,00 USD 36,750 262.523,89 0,55 0,55

WESTFIELD GROUP - 29.855,00 AUD 10,560 248.262,70 0,52 0,52

WESTFIELD RETAIL TRUST - 55.061,00 AUD 3,020 130.942,77 0,27 0,27

WOODSIDE PETROLEUM LTD - 7.607,00 AUD 33,880 202.949,18 0,43 0,42

Belgium

ANHEUSER-BUSCH INBEV NV - 2.637,00 EUR 65,740 173.356,38 0,36 0,36

Bermuda

CNPC HONG KONG LTD - 54.000,00 HKD 16,180 85.502,07 0,18 0,18

COVIDIEN LTD - 5.092,00 USD 57,740 223.006,74 0,47 0,47

Brazil

CVRD-CIA VALE DO RIO DOCE PREF A 28.100,00 BRL 40,870 425.429,52 0,89 0,89

EMBRAER SA - 29.156,00 BRL 14,450 156.067,49 0,33 0,33

Canada

BARRICK GOLD CORP - 4.032,00 CAD 34,820 106.950,74 0,22 0,22

BROOKFIELD ASSET MANAGEMENT - 10.798,00 CAD 36,440 299.747,94 0,63 0,63

GREAT-WEST LIFECO INC. - 7.200,00 CAD 24,350 133.556,79 0,28 0,28

MANULIFE FINANCIAL CORP - 15.378,00 CAD 13,510 158.266,76 0,33 0,33

ONEX CORPORATION - 7.016,00 CAD 41,870 223.782,98 0,47 0,47

POWER CORP - 7.657,00 CAD 25,380 148.041,94 0,31 0,31

POWER FINANCIAL CORP - 5.386,00 CAD 27,240 111.765,55 0,23 0,23

SILVER WHEATON CORP - 4.273,00 CAD 35,860 116.728,71 0,25 0,24

TECK RESOURCES CLASS B 5.508,00 CAD 36,150 151.682,94 0,32 0,32

VERMILION ENERGY TRUST - 2.042,00 CAD 51,970 80.843,10 0,17 0,17

YAMANA GOLD INC - 9.250,00 CAD 17,110 120.566,39 0,25 0,25

China

BANK OF CHINA LTD - H - 631.000,00 HKD 3,460 213.653,40 0,45 0,45

COSCO HOLDINGS - 197.500,00 HKD 3,800 73.443,78 0,15 0,15

Colombia

BANCOLOMBIA SA - 8.793,00 COP 30.000,000 113.233,55 0,24 0,24

BANCOLOMBIA SA PREF 19.237,00 COP 29.820,000 246.241,79 0,52 0,52

Denmark

NOVO NORDISK A/S "B" 1.626,00 DKK 916,500 199.735,83 0,42 0,42

France

BNP PARIBAS - 2.877,00 EUR 42,585 122.517,05 0,26 0,26

L'OREAL - 1.383,00 EUR 104,900 145.076,70 0,30 0,30

LAFARGE - 6.716,00 EUR 48,230 323.912,68 0,68 0,68

PINAULT-PRINTEMPS-REDOUTE - 1.397,00 EUR 140,850 196.767,45 0,41 0,41

SANOFI - 3.824,00 EUR 71,390 272.995,36 0,57 0,57

SOCIETE GENERALE - 2.713,00 EUR 28,340 76.886,42 0,16 0,16

TECHNIP SA (PAR) 1.997,00 EUR 86,840 173.419,48 0,36 0,36

Germany

BAYER AG - 2.326,00 EUR 71,890 167.216,14 0,35 0,35

DAIMLER AG - 3.519,00 EUR 41,320 145.405,08 0,31 0,30

DEUTSCHE BANK AG REG 2.959,00 EUR 32,950 97.499,05 0,20 0,20

DEUTSCHE TELEKOM INT FIN REG 9.883,00 EUR 8,595 84.944,39 0,18 0,18

E.ON SE - 5.774,00 EUR 14,090 81.355,66 0,17 0,17

HENKEL KGAA PREF 3.991,00 EUR 62,200 248.240,20 0,52 0,52

LANXESS - 3.751,00 EUR 66,270 248.578,77 0,52 0,52

SAP AG - 8.637,00 EUR 60,690 524.179,53 1,10 1,10

Hong Kong

BELLE INTERNATIONAL HOLDINGS - 108.000,00 HKD 16,820 177.768,21 0,37 0,37

CATHAY PACIFIC AIRWAYS - 79.056,00 HKD 14,220 110.011,68 0,23 0,23

CHEUNG KONG INFRASTRUCTURE - 35.659,00 HKD 47,500 165.755,18 0,35 0,35

CHINA MOBILE LTD. - 15.000,00 HKD 90,250 132.477,71 0,28 0,28

CHINA OVERSEAS LAND & INVEST LTD - 38.000,00 HKD 23,100 85.901,34 0,18 0,18

CHINA RESOURCES LAND - 38.000,00 HKD 21,100 78.463,99 0,16 0,16

CLP - 39.000,00 HKD 64,850 247.502,13 0,52 0,52

HUTCHISON WHAMPOA - 17.523,00 HKD 80,900 138.727,11 0,29 0,29

MTR CORPORATION - 83.000,00 HKD 30,500 247.732,10 0,52 0,52

SWIRE PACIFIC LTD - 27.500,00 HKD 95,850 257.946,22 0,54 0,54

Indonesia

INDO TAMBANGRAYA MEGAH PT - 55.000,00 IDR 41.550,000 179.854,56 0,38 0,38

Ireland

ANGLO IRISH BANK CORP - 12.016,00 EUR 0,217 2.607,47 0,01 0,01

Italy

ENI - 4.034,00 EUR 18,340 73.983,56 0,16 0,16

SAIPEM (MIL) 5.748,00 EUR 29,300 168.416,40 0,35 0,35

Japan

CANON INC - 3.597,00 JPY 3.340,000 105.385,79 0,22 0,22

EISAI CO. - 19.200,00 JPY 3.600,000 606.315,79 1,27 1,27

FANUC CORP - 1.800,00 JPY 15.920,000 251.368,42 0,53 0,53

HONDA MOTOR CO - 5.916,00 JPY 3.145,000 163.208,95 0,34 0,34

HOYA CORPORATION - 10.000,00 JPY 1.691,000 148.333,33 0,31 0,31

INPEX CORP - 59,00 JPY 457.500,000 236.776,32 0,50 0,50

KOMATSU - 11.400,00 JPY 2.184,000 218.400,00 0,46 0,46

MILLEA HOLDINGS INC - 10.200,00 JPY 2.383,000 213.215,79 0,45 0,45

MITSUBISHI CORP - 6.753,00 JPY 1.647,000 97.563,08 0,21 0,20

MITSUBISHI UFJ FINANCIAL GROUP - 40.200,00 JPY 461,000 162.563,16 0,34 0,34

NIKON - 6.500,00 JPY 2.526,000 144.026,32 0,30 0,30

NINTENDO CO - 3,00 JPY 9.170,000 241,32 0,00 0,00

SEVEN & I HOLDINGS CO LTD - 7.000,00 JPY 2.437,000 149.640,35 0,31 0,31

SHIMANO INC - 2.800,00 JPY 5.520,000 135.578,95 0,28 0,28

TDK CORP - 3.000,00 JPY 3.110,000 81.842,11 0,17 0,17

TORAY INDUSTRIES - 52.000,00 JPY 527,000 240.385,96 0,50 0,50

TOYOTA MOTOR_CREDIT - 8.969,00 JPY 4.005,000 315.095,13 0,66 0,66

Luxembourg

SES GLOBAL - 15.007,00 EUR 21,705 325.726,94 0,68 0,68

Malaysia

AXIATA GROUP BERHAD - 163.100,00 MYR 6,590 266.594,49 0,56 0,56

IOI CORP BERHAD - 148.790,00 MYR 5,100 188.215,64 0,40 0,39

MALAYAN BANKING BHD - 3,00 MYR 9,200 6,85

Y.T.L. CORP (BERHAD) 323.706,00 MYR 1,900 152.551,38 0,32 0,32

YTL POWER INTERNATIONAL BHD - 366.707,00 MYR 1,560 141.891,24 0,30 0,30

Mexico

AMERICA MOVIL S.A. DE C.V. -L- 300.100,00 MXN 14,900 261.172,96 0,55 0,55

CEMEX S.A. DE C.V. CPO 86,00 MXN 12,700 63,79

GRUPOMEXICO SA -B- 19,00 MXN 46,750 51,88

Netherlands

ING GROEP NV - 13.186,00 EUR 7,061 93.106,35 0,20 0,20

UNILEVER CVA 11.103,00 EUR 28,835 320.155,01 0,67 0,67

VOPAK (KON.) (AMS) 5.669,00 EUR 53,310 302.214,39 0,63 0,63

Norway

TELENOR A/S - 18.022,00 NOK 112,200 275.591,29 0,58 0,58

Philippines

AYALA CORP - 16.700,00 PHP 517,000 159.483,01 0,33 0,33

Portugal

JERONIMO MARTINS - 10.197,00 EUR 14,600 148.876,20 0,31 0,31

Russia

GAZPROM ADR NEW 38.809,00 USD 9,460 278.468,70 0,58 0,58

Singapore

FLEXTRONICS INTL LTD - 30.926,00 USD 6,210 145.669,34 0,31 0,31

NEPTUNE ORIENT LINES - 375,00 SGD 1,145 266,61 0,00 0,00

SINGAPORE TELECOM - 208.993,00 SGD 3,300 428.237,75 0,90 0,90

South Africa

IMPALA PLATINUM HOLDINGS LTD. - 9.477,00 ZAR 167,700 142.081,29 0,30 0,30

MTN GROUP LTD. - 17.892,00 ZAR 177,600 284.076,17 0,60 0,59

SASOL LTD - 14.705,00 ZAR 362,800 476.941,66 1,00 1,00

South Korea

DOOSAN HEAVY INDS & CONSTRUCTION CO - 2.885,00 KRW 45.200,000 92.388,68 0,19 0,19

KIA MOTORS CORP. - 6.530,00 KRW 56.500,000 261.394,31 0,55 0,55

LG ELECTRONICS INC NEW 2.764,00 KRW 73.600,000 144.128,66 0,30 0,30

SAMSUNG ELECTRONICS - 66,00 KRW 1.522.000,000 71.169,36 0,15 0,15

SAMSUNG ENGINEERING CO LTD - 1.132,00 KRW 165.500,000 132.733,01 0,28 0,28

Spain

BANCO SANTANDER CENTRAL HISPANO SA - 94.008,00 EUR 6,100 573.448,80 1,20 1,20

TELEFONICA SA - 10.047,00 EUR 10,190 102.378,93 0,22 0,21

Sweden

HENNES&MAURITZ "B" 8.125,00 SEK 224,500 212.674,02 0,45 0,45

Switzerland

ABB LTD - 16.199,00 CHF 18,750 251.683,17 0,53 0,53

COMPAGNIE FINANCIERE RICHEMONT "A" 3.042,00 CHF 71,400 179.979,12 0,38 0,38

NESTLE AG REG 8.535,00 CHF 59,600 421.516,41 0,88 0,88

NOVARTIS AG REG 4.543,00 CHF 57,450 216.270,59 0,45 0,45

ROCHE HOLDING GENOTS 1.816,00 CHF 184,000 276.884,32 0,58 0,58

SGS SA (REG) 97,00 CHF 2.026,000 162.845,54 0,34 0,34

SYNGENTA (NOM) 762,00 CHF 366,600 231.479,28 0,49 0,48

TE CONNECTIVITY LTD - 7.762,00 USD 37,120 218.541,75 0,46 0,46

THE SWATCH GROUP AG - 308,00 CHF 461,200 117.707,66 0,25 0,25

ZURICH INSURANCE GROUP AG - 710,00 CHF 243,400 143.200,20 0,30 0,30

Taiwan

ACER INC. - 36,00 TWD 25,200 23,70

HON HAI PRECISION - 500,00 TWD 88,900 1.161,03 0,00 0,00

KGI SECURITIES CO LTD - 376.998,00 TWD 14,100 138.844,76 0,29 0,29

SINOPAC FINANCIAL HOLDINGS - 1.070.066,00 TWD 12,450 347.977,58 0,73 0,73

TAIWAN SEMICONDUCTOR - 65.215,00 TWD 97,000 165.230,64 0,35 0,35

Turkey

TURK HAVA YOLLARI AO - 34.810,00 TRY 6,260 92.609,69 0,19 0,19

U.K.

ANGLO AMERICAN PLC PLC 4.707,00 GBP 18,940 109.913,18 0,23 0,23

ASTRAZENECA PLC - 3.913,00 GBP 29,095 140.363,38 0,29 0,29

BARCLAYS BANK PLC - 45.923,00 GBP 2,624 148.566,09 0,31 0,31

BAT HOLDINS BV - 6.809,00 GBP 31,210 262.000,85 0,55 0,55

BG GROUP PLC - 8.199,00 GBP 10,125 102.348,51 0,22 0,21

BILLITON PLC - 9.297,00 GBP 21,295 244.087,80 0,51 0,51

BP PLC - 18.050,00 GBP 4,248 94.533,84 0,20 0,20

DIAGEO - 8.668,00 GBP 17,870 190.971,72 0,40 0,40

EXPERIAN GROUP LTD - 11.092,00 GBP 9,800 134.017,51 0,28 0,28

HSBC HOLDING PLC - 108.440,00 GBP 6,469 864.872,84 1,81 1,81

NAT. GRID PLC - 33.432,00 GBP 7,030 289.763,24 0,61 0,61

RIO TINTO PLC - 5.928,00 GBP 35,115 256.641,25 0,54 0,54

ROYAL DUTCH SHELL PLC -B- 5.040,00 GBP 21,750 135.149,80 0,28 0,28

SABMILLER PLC - 4.292,00 GBP 28,250 149.487,12 0,31 0,31

SCHRODERS PLC - 7.852,00 GBP 16,860 163.216,27 0,34 0,34

STANDARD CHARTERED - 17.768,00 GBP 15,735 344.691,75 0,72 0,72

TULLOW OIL INC (LON) 9.118,00 GBP 12,610 141.755,62 0,30 0,30

UNILEVER PLC - 4.722,00 GBP 23,660 137.741,98 0,29 0,29

VODAFONE GROUP PLC - 107.003,00 GBP 1,545 203.755,56 0,43 0,43

U.S.A.

ACCENTURE LTD "A" 6.652,00 USD 66,500 335.526,40 0,70 0,70

ADOBE SYSTEMS - 9.916,00 USD 37,680 283.400,24 0,59 0,59

AES CORP - 46.164,00 USD 10,700 374.662,32 0,79 0,78

AFLAC INC - 5.789,00 USD 53,120 233.246,12 0,49 0,49

AGCO CORP - 5.604,00 USD 49,120 208.789,81 0,44 0,44

AMERICAN EXPRESS - 4.529,00 USD 57,480 197.456,71 0,41 0,41

AMERICAN INT. GROUP - 6.064,00 USD 35,300 162.362,86 0,34 0,34

AMERICAN TOWER CORP CL A 3.425,00 USD 77,270 200.735,55 0,42 0,42

AON CORPORATION - 3.449,00 USD 55,600 145.452,37 0,31 0,30

APACHE CORP. - 3.706,00 USD 78,500 220.662,17 0,46 0,46

APPLIED MATERIALS - 30.000,00 USD 11,440 260.315,53 0,55 0,54

BAKER HUGHES INC - 4.043,00 USD 40,840 125.239,78 0,26 0,26

BANK OF NEW YORK MELLON CORP - 7.301,00 USD 25,700 142.320,77 0,30 0,30

BAXTER INTL INC - 4.617,00 USD 66,660 233.441,46 0,49 0,49

BECTON DICKINSON - 3.772,00 USD 78,190 223.705,01 0,47 0,47

BLACKROCK INC. - 826,00 USD 206,710 129.507,33 0,27 0,27

BORGWARNER INC - 2.220,00 USD 71,620 120.598,00 0,25 0,25

CAMERON INTERNATIONAL CORP - 3.558,00 USD 56,460 152.370,05 0,32 0,32

CATERPILLAR INC - 5.031,00 USD 89,580 341.836,30 0,72 0,72

CHEVRON CORP - 2.379,00 USD 108,140 195.134,30 0,41 0,41

CIT GROUP INC. - 13.690,00 USD 38,640 401.229,98 0,84 0,84

CITIGROUP INC - 21.225,00 USD 39,560 636.878,79 1,34 1,33

COCA-COLA CO - 29.925,00 USD 36,250 822.801,31 1,73 1,72

COLGATE - PALMOLIVE - 3.915,00 USD 104,540 310.432,42 0,65 0,65

CORNING INC - 21.078,00 USD 12,620 201.763,02 0,42 0,42

DENTSPLY INTERNATIONAL INC - 3.449,00 USD 39,610 103.621,73 0,22 0,22

DUKE ENERGY HOLDING CORP - 1.750,00 USD 63,800 84.685,98 0,18 0,18

EATON CORP. - 3.373,00 USD 54,200 138.665,50 0,29 0,29

EBAY INC. - 4.169,00 USD 51,020 161.333,72 0,34 0,34

EDWARDS LIFESCIENCES CORP. - 2.380,00 USD 90,170 162.776,55 0,34 0,34

EMERSON ELECTRIC CO - 3.611,00 USD 52,960 145.053,52 0,30 0,30

EXPEDITORS INTL OF WASHINGTON INC. - 12.089,00 USD 39,550 362.651,66 0,76 0,76

EXXON MOBIL CORP - 3.651,00 USD 86,550 239.679,95 0,50 0,50

FMC CORPORATION - 6.052,00 USD 58,520 268.630,95 0,56 0,56

FREEPORT-MCMORAN COPPER & GOLD, INC. - 9.156,00 USD 34,200 237.511,53 0,50 0,50

GOLDMAN SACHS - 2.079,00 USD 127,560 201.150,82 0,42 0,42

GOOGLE INC -A- 271,00 USD 709,370 145.812,55 0,31 0,31

I.B.M. - 7.424,00 USD 191,550 1.078.631,07 2,27 2,26

ILLINOIS TOOL WORKS INC - 4.234,00 USD 60,810 195.289,40 0,41 0,41

INTEL CORP - 25.369,00 USD 20,630 396.967,89 0,83 0,83

INTL FLAVORS & FRAG. - 6.097,00 USD 66,540 307.717,22 0,65 0,64

INVESCO LTD - 8.497,00 USD 26,090 168.148,31 0,35 0,35

KANSAS CITY SOUTHERN - 1.385,00 USD 83,480 87.697,06 0,18 0,18

KIMBERLEY-CLARK CORP - 4.537,00 USD 84,430 290.548,32 0,61 0,61

LAS VEGAS SANDS CORP - 4.035,00 USD 46,160 141.273,97 0,30 0,30

LIBERTY GLOBAL INC -C- 4.842,00 USD 58,750 215.767,22 0,45 0,45

MARSH & MCLENNAN CO - 7.105,00 USD 34,470 185.762,55 0,39 0,39

MASTERCARD INC - 432,00 USD 491,280 160.977,67 0,34 0,34

MAXIM INTEGRATED PRODUCTS - 8.971,00 USD 29,400 200.051,12 0,42 0,42

MC DONALD'S CORP - 5.415,00 USD 88,210 362.300,63 0,76 0,76

MERCK & CO - 5.690,00 USD 40,940 176.690,38 0,37 0,37

NATIONAL-OILWELL VARCO INC - 7.974,00 USD 68,350 413.397,22 0,87 0,87

NIKE "B" 5.492,00 USD 51,600 214.947,82 0,45 0,45

NOBLE ENERGY INC - 1.499,00 USD 101,740 115.676,77 0,24 0,24

NORTHERN TRUST CORPORATION - 6.829,00 USD 50,160 259.816,93 0,55 0,54

ORACLE CORP - 8.495,00 USD 33,320 214.694,63 0,45 0,45

PEABODY ENERGY CORP - 4.419,00 USD 26,610 89.191,13 0,19 0,19

PFIZER - 11.210,00 USD 25,080 213.248,48 0,45 0,45

PHILIP MORRIS INTERNATIONAL INC. - 11.156,00 USD 83,640 707.742,60 1,48 1,48

PRICELINE.COM INC. - 468,00 USD 621,200 220.510,92 0,46 0,46

PROCTER & GAMBLE - 5.530,00 USD 67,890 284.763,12 0,60 0,60

PROLOGIS TRUST - 4.483,00 USD 36,490 124.078,18 0,26 0,26

QUALCOMM CORP - 14.194,00 USD 62,020 667.712,29 1,40 1,40

SANDISK CORP - 4.709,00 USD 43,560 155.585,59 0,33 0,33

SCHLUMBERGER - 11.747,00 USD 69,290 617.376,84 1,29 1,29

SEMPRA ENERGY - 3.050,00 USD 70,940 164.113,32 0,34 0,34

TEXAS INSTRUMENTS - 12.593,00 USD 30,890 295.052,92 0,62 0,62

TIFFANY & CO - 2.768,00 USD 57,340 120.386,17 0,25 0,25

TJX COMPANIES INC. - 5.151,00 USD 42,450 165.852,51 0,35 0,35

UNITED TECHNOLOGIES - 3.627,00 USD 82,010 225.614,59 0,47 0,47

VARIAN MEDICAL SYSTEMS - 2.365,00 USD 70,240 125.999,39 0,26 0,26

WAL-MART STORES - 5.927,00 USD 68,230 306.734,84 0,64 0,64

WATERS CORP - 5.912,00 USD 87,120 390.665,53 0,82 0,82

WEYERHAEUSER COMPANY - 7.686,00 USD 27,820 162.184,86 0,34 0,34

WYNN RESORTS LTD - 1.733,00 USD 112,490 147.864,97 0,31 0,31

YUM! BRANDS INC - 6.937,00 USD 66,400 349.375,61 0,73 0,73

ZIMMER HOLDINGS INC. - 2.399,00 USD 66,660 121.296,53 0,25 0,25

3M CO - 14.687,00 USD 92,850 1.034.350,69 2,17 2,16

Total shares 47.702.121,80 99,99 99,77

Warrants

Malaysia

YTL POWER INTERNATIONAL BHD CW18 29.433,00 MYR 0,430 3.139,17 0,01 0,01

Total Warrants 3.139,17 0,01 0,01

TOTAL SECURITIES PORTFOLIO 47.705.260,97 100,00 99,77

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 773.265,91 EUR 1,000 773.265,91 1,62

TOTAL RECEIVED COLLATERAL 773.265,91 1,62

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 8.689,80 AUD 1,000 6.842,90 0,01

KBC GROUP CAD 9.699,33 CAD 1,000 7.388,84 0,02

KBC GROUP CHF 12.477,33 CHF 1,000 10.339,19 0,02

KBC GROUP CZK 20.848,89 CZK 1,000 830,77 0,00

KBC GROUP DKK 20.109,59 DKK 1,000 2.695,29 0,01

KBC GROUP EURO -173.435,98 EUR 1,000 -173.435,98 -0,36

KBC GROUP GBP 10.448,91 GBP 1,000 12.882,39 0,03

KBC GROUP HKD 84.964,30 HKD 1,000 8.314,59 0,02

KBC GROUP HUF 2.074.062,32 HUF 1,000 7.121,98 0,02

KBC GROUP JPY 396.981,00 JPY 1,000 3.482,29 0,01

KBC GROUP MXN 137.718,70 MXN 1,000 8.043,94 0,02

KBC GROUP NOK 62.155,29 NOK 1,000 8.471,25 0,02

KBC GROUP NZD 8.692,17 NZD 1,000 5.439,07 0,01

KBC GROUP PLN 11.796,45 PLN 1,000 2.891,07 0,01

KBC GROUP SEK 27.678,04 SEK 1,000 3.227,08 0,01

KBC GROUP SGD 11.655,16 SGD 1,000 7.236,98 0,02

KBC GROUP TRY 6.465,99 TRY 1,000 2.747,98 0,01

KBC GROUP USD -64.067,75 USD 1,000 -48.595,08 -0,10

KBC GROUP ZAR 56.994,81 ZAR 1,000 5.095,28 0,01

Total demand accounts -118.980,17 -0,25

TOTAL CASH AT BANK AND IN HAND -118.980,17 -0,25

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 20.380,60 EUR 1,000 20.380,60 0,04

KBC GROUP MYR RECEIVABLE 300.635,87 MYR 1,000 74.568,02 0,16

KBC GROUP TWD TE ONTVANGEN 7.554.822,40 TWD 1,000 197.331,13 0,41

KBC GROUP WHT TO BE RECOVERED EUR 6.214,22 EUR 1,000 6.214,22 0,01

Total receivables 298.493,97 0,62

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-773.265,91 EUR 1,000 -773.265,91 -1,62

KBC GROUP EUR PAYABLE -35.399,09 EUR 1,000 -35.399,09 -0,07

Payables -808.665,00 -1,69

TOTAL RECEIVABLES AND PAYABLES -510.171,03 -1,07

OTHER

Interest receivable EUR 51.409,80 0,11

Accrued interest EUR 5.149,87 0,01

Expenses payable EUR -91.713,18 -0,19

TOTAL OTHER -35.153,51 -0,07

TOTAL NET ASSETS 47.814.222,17 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 5,45 4,70 4,50 3,74 Austria 1,27 0,35 0,00 0,00 Belgium 0,50 0,34 0,34 0,36 Bermuda 0,00 0,66 0,45 0,65 Brazil 0,71 0,47 1,30 1,22 Canada 5,48 4,58 2,82 3,46 Switzerland 3,23 4,28 4,08 4,20 Chile 0,10 0,11 0,00 0,00 China 0,42 0,35 0,42 0,60 Colombia 0,00 1,32 1,16 0,75 Germany 1,73 1,26 2,12 3,35 Denmark 0,27 0,39 0,38 0,42 Egypt 0,00 0,25 0,00 0,00 Spain 1,37 0,99 1,73 1,42 Finland 0,24 0,30 0,00 0,00 France 3,56 2,10 2,03 2,75 U.K. 10,59 9,91 9,04 8,98 Greece 0,15 0,00 0,00 0,00 Hong Kong 1,80 2,29 2,86 3,44 India 0,83 0,15 0,00 0,00 Indonesia 0,23 0,21 0,35 0,38 Ireland 0,36 0,00 0,00 0,01 Israel 0,13 0,00 0,00 0,00 Italy 0,16 0,49 0,59 0,51 Japan 5,40 7,54 7,82 6,85 South Korea 1,88 0,80 1,46 1,47 Luxembourg 0,27 0,49 0,72 0,68 Mexico 1,84 0,48 0,36 0,55 Malaysia 2,71 2,00 1,77 1,58 Netherlands 0,92 1,13 1,34 1,50 Norway 0,00 0,00 0,54 0,58 Peru 0,12 0,20 0,00 0,00 Philippines 0,00 0,00 0,00 0,33 Poland 0,00 0,10 0,00 0,00 Portugal 0,33 0,29 0,43 0,31 Russia 1,87 1,38 0,65 0,58 Singapore 1,16 0,93 1,37 1,20 Sweden 1,57 1,31 0,48 0,45 Turkey 0,00 0,00 0,00 0,19 Taiwan 0,76 1,07 1,29 1,37 U.S.A. 40,77 44,38 45,45 44,23 South Africa 1,82 2,40 2,15 1,89 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 30,41 28,45 27,55 26,48 Consum(cycl) 12,68 14,70 14,51 14,17 Cons.goods 9,99 11,12 11,68 10,60 Pharma 7,29 8,43 8,48 8,25 Financials 17,65 14,04 14,89 17,84 Technology 13,13 14,48 14,50 13,73 Telecomm. 3,98 3,34 3,26 3,72 Utilities 3,53 3,88 3,53 3,27 Real est. 1,34 1,56 1,60 1,94 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 5,44 4,41 4,07 3,26 BRL 0,71 0,47 1,30 1,22 CAD 5,48 4,57 2,83 3,47 CHF 3,22 4,26 4,09 4,20 COP 0,00 1,07 1,16 0,75 DKK 0,27 0,40 0,39 0,42 EUR 10,37 7,85 9,13 10,47 GBP 9,88 9,56 8,70 8,62 HKD 2,03 2,53 3,29 4,23 HUF 0,01 0,01 0,01 0,01 IDR 0,25 0,21 0,35 0,38 INR 0,83 0,15 0,00 0,00 JPY 5,38 7,50 7,83 6,84 KRW 1,87 0,80 1,46 1,47 MXN 1,85 0,49 0,37 0,56 MYR 2,70 1,99 1,77 1,73 NOK 0,17 0,46 0,56 0,59 NZD 0,00 0,01 0,01 0,01 PHP 0,00 0,00 0,00 0,33 PLN 0,00 0,10 0,00 0,01 SEK 1,58 1,32 0,50 0,45 SGD 1,16 0,93 1,04 0,91 TRY 0,00 0,00 0,00 0,20 TWD 0,98 1,18 1,29 1,78 USD 44,00 47,33 47,70 46,19 ZAR 1,82 2,40 2,15 1,90 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND GLOBAL LEADERS

(IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 79.386.936,28 23.085.007,32 102.471.943,60 Sales 90.322.844,40 64.775.472,17 155.098.316,57 Total 1 169.709.780,68 87.860.479,49 257.570.260,17 Subscriptions 62.299.565,42 24.842.710,19 87.142.275,61 Redemptions 73.567.456,08 66.069.396,53 139.636.852,61 Total 2 135.867.021,50 90.912.106,72 226.779.128,22 Monthly average of total assets

122.599.819,87 63.394.019,81 92.996.919,84

Turnover rate 27,60 % -4,81 % 33,11 %

1st half of year 2nd half of year YearPurchases 79.386.936,28 23.085.007,32 102.471.943,60 Sales 90.322.844,40 64.775.472,17 155.098.316,57 Total 1 169.709.780,68 87.860.479,49 257.570.260,17 Subscriptions 62.299.565,42 24.842.710,19 87.142.275,61 Redemptions 73.567.456,08 66.069.396,53 139.636.852,61 Total 2 135.867.021,50 90.912.106,72 226.779.128,22 Monthly average of total assets

121.222.004,37 67.633.582,23 91.335.820,93

Corrected turnover rate 27,92 % -4,51 % 33,71 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 773.265,91 773.265,91 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 669.094,64 108.564,94 431.243,91 12.197,55 525.456,20 114.756,94 640.213,14

2011 - 12 353.521,05 19.120,25 737.779,34 90.236,00 141.197,91 43.641,19 184.839,10

2012 - 12 20.606,95 3.508,00 45.821,09 10.348,38 115.983,77 36.800,82 152.784,58

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 159.779.666,72 22.246.643,59 101.704.698,50 2.544.252,05

2011 - 12 92.489.223,30 4.339.898,53 180.175.634,58 20.109.908,84

2012 - 12 5.427.811,81 779.337,88 12.137.179,32 2.330.503,90

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 168.398.300,89 270,10 230,70

2011 - 12 43.410.885,18 243,41 207,18

2012 - 12 39.842.171,05 270,85 229,02

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 207.510,00 8.100,00 199.410,00 199.410,00

2012 - 12 306.104,00 476.127,00 29.387,00 29.387,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 48.204.259,12 1.939.856,83

2012 - 12 81.058.750,67 125.990.547,01

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 48.581.736,85 243,63

2012 - 12 7.972.051,12 271,28

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0174807132 EUR 10.16% 6.32% -1.05% 0.0192 01/09/2000 -4.93%

DIV BE0174806126 EUR 10.14% 6.34% -1.04% 0.0191 01/09/2000 -4.93%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228546790 EUR 10.23% 25/11/2011 18.06%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 1.39 EUR net (1.85 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.706% Classic Shares Capitalization: 1.709% Institutional B Shares Capitalization: 1.627% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 59,232 35,550 60.02%

CSFBSAS 4,676 2,910 62.22%

EQ CSA MACQUARIE 3,645 2,107 57.82%

MERRILL 28,461 16,391 57.59%

MORGAN STANLEY 977 628 64.28%

NOMURA 37,385 20,835 55.73%

UBSWDR 57,888 36,487 63.03%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 74.850,79 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

CHINA COSCO HOLDINGS CO. LTD -H- HKD 191.500 3,800 71.212,58

CLP HOLDINGS HKD 38.999 64,850 247.495,78

MANULIFE FINANCIAL CORP CAD 15.377 13,510 158.256,47

POWER FINANCIAL CORP CAD 5.300 27,240 109.980,96

WESTFIELD RETAIL TRUST AUD 55.060 3,020 130.940,39

Total 717.886,18

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 138.000 EUR 168.608,95

FRANCE 2003 2,25% 25/07/2020 EUR 5.000 EUR 7.275,26

OAT FRANCE 2003 4% 25/04/14 EUR 32.000 EUR 34.550,82

FRANCE 2004 1,60% 25/07/2015 EUR 438.000 EUR 562.830,88

Total 773.265,91 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Oil

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND OIL

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 29 September 2000 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 574.29 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies operating in the oil sector, including companies involved in extracting or refining crude oil or natural gas, or companies involved in the distribution of these products or derivatives thereof.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR The price of oil has continued to fluctuate sideways since 2011, with the customary volatility. The average price price of Brent oil amounted in 2012 to no less than 112 USD – a record and slightly higher than last year, when the average price was 111 USD. The Middle East remained turbulent. In 2012 the confrontation between the West and Iran assumed the proportions of an economic war. Europe announced a boycott in January of Iraninan oil exports. This became effective on 1 July and was supplemented by a freeze on Iranian financial assets in the US. As a result the oil price rose in March to 125 USD. The consumer was however confronted by an economy that was weakening on major concerns surrounding the financial euro crisis and fears of a stagnation of economic growth in China. The oil price consequently eased to 92 USD. This trough in the price gave the economy a limited breathing space, in addition to which bailout plans for the Greek debt were worked out, whereupon the oil price recovered to approximately 110 USD.

The marked decline in the gas price in North America was sustained in 2012. The Henry Hub gas price peaked in 2008 at over 10 USD, but fluctuated in 2012 between 3 USD and 4 USD as a result of the continuous supply of gas from American shale drilling. It consequently became less interesting for oil companies to exploit deposits with a high gas content. This resulted in a shift to oil-rich shale fields, where gas is also obtained as a byproduct. The cheap gas is used by US businesses and households, while the coal that goes unused as a result is exported to Europe. Despite the cold winter in early 2012, this resulted in less demand for gas in Europe. The global LNG (liquid gas) market remained very tight. The oil sector performed less well than the equity market in general. Apart from the weak economic fundamentals, 2012 was characterised by negative company-specific factors among firms with a large market capitalisation. Examples include Repsol, which saw a significant proportion of its assets expropriated, lower production forecasts at BG, ongoing lack of clarity for BP over the Macondo claims, the Elgin platform gas leak in the case of Total, and the sale by ENI of its holding in GALP. In general terms the oil service companies performed better than the integrated players. This applied in particular to the European players. Also notable were the unexpectedly strong margins in the European refinery sector due to the temporary closedown of refineries and to efficiency improvements. As a result of the large-scale supply of cheap shale oil, US refining players have also been able to benefit and to record handsome margins. The fund was overweight in oil services at the expense of the integrated oil companies. Oil service companies active in Brazil and Africa were overweighted, while the oil companies with heavy exposure to the low gas prices were underweighted. Within the refining sector the preference was for US players as these are operating at higher margins.

2.1.8 FUTURE POLICY We believe that 2012 brought to an end an era in which oil prices had been rising for many years. We expect oil prices to come under pressure in the coming years. On the one hand we anticipate no more than a limited increase in demand, driven primarily by the expected economic recovery in the US and China. Since production will also continue to increase, the impact on the oil price will in our view remain limited. Production increases will be seen particularly in Iraq, the US and certain other non-OPEC countries. The situation in the oil market has undergone a total facelift in recent years. The US recorded its largest single-year growth in oil production since 1859 – an increase that threatens to produce a revolution in the oil market. No-one had dared suspect that the picture could change so rapidly. The boost was provided by the new technology of hydraulic drilling. In particular, the extraction of gas from shale deposits has taken off massively in the US in recent years. The fracking process involves pumping water into shale rock at high pressure, thereby as it were squeezing out the fossil fuels. These techniques are now also finding their way to the oil market. Following the American shale gas boom, we may therefore now also anticipate a shale oil boom. The IEA (the International Energy Agency) has calculated that given the present stocks, the US could be the world’s biggest oil producer in five years' time. Matters will not of course proceed so quickly, but we do expect production to rise sharply in the coming years. After a year’s overproduction, worldwide oil stocks rose substantially in 2012. This year we are expecting OPEC's reserve capacity to rise in comparison with 2012. Last year the oil market had to contend with an unparalleled number of unexpected production problems in Yemen, Norway and Brazil, etc., leading to a drop in production of one million barrels per day. If anything, we are expecting a normalisation in 2013. This, in combination with our expectation of rising production and a slight easing of geopolitical tensions, should lead to a lower risk premium on the Brent oil price in the course of 2013. By historical standards the reserve capacity will remain low, so that in the short term, oil prices will remain highly vulnerable to geopolitical tensions. We are however expecting oil prices to remain around the 100 USD mark. Since Saudi Arabia – the only oil producer capable of influencing the price – is happy with the present price of oil, it is likely to cut its production in order to support prices in the event of any correction. At 100 USD the fiscal budgets of most oil-exporting countries are covered, with the exception of Iran, which is grappling with the impact of the sanctions. The budgets have risen substantially in recent years – since the start of the Arab spring – as a result of investments in social provisions such as healthcare and education. For consumers 100 USD is acceptable since this does not impede economic growth and inflationary pressures are limited.

We expect the Henry Hub natural gas price to rise slightly in 2013 in response to falling supply. As a result of the low gas prices it became less interesting last year for oil and gas companies to tap deposits with a high gas content. Much will of course depend on the weather. If we have another mild winter, stocks will remain at very high levels, which will continue to weigh on US gas prices. We are however expecting European gas prices to rise next year. The weak economic growth and warm winter have kept down the demand for gas in Europe, which has in turn weighed on prices. On the other hand, however, the gas fields in the UK and Norway are running out and LNG imports are falling since the prices in Asia are far more attractive. The LNG market remains extremely tight and we are expecting prices to remain very high. In 2013 we will be sticking with our underweight position in the integrated oil companies. We are expecting 2013 to see a repetition of 2012. We fear that the oil giants will once again faced rising costs, higher investment expenditure and weak production growth in 2013. On top of that we are anticipating a further fall in profitability. We will accordingly continue to underweight oil and gas companies with heavy exposure to the low gas prices. Since we are anticipating a slight recovery for US gas, we have however reduced the underweighting. A number of gas companies that were marked down too heavily last year have been re-added the portfolio. We are continuing to overweight oil services. The price of oil determines future investments in new oil fields and at the present price most projects are profitable. In the medium term it will remain a major challenge for the supply to continue matching the rise in demand, but in contrast to 2012 we are now opting resolutely in favour of American oil service companies. Following the strong performance by the European oil services sector, expectations have risen sharply. Another important theme that we will continue to play this year is that of shale oil. Since we expect production from shale rock to rise exponentially in the coming years, companies that have built up strong positions in the various shale oil fields represent very attractive growth stories. In our view the market continues to underestimate the impact of the ever-improving drilling techniques and associated reduction in costs. Indirectly too US refining companies are continuing to benefit from the large supplies of cheap shale oil. The US refining companies will once again be generating very strong cash flows next year and we see further scope for dividend increases or share buybacks. The European refining sector remains sickly and we took advantage of the rally last year in order to underweight this segment. Another structural theme in which we remain engaged is that of LNG. In the coming years very little new capacity will be coming on stream on the supply side, while demand will continue to grow strongly, especially in Asia. It is not, however, all moonshine and roses in this segment. We remain selective. In Australia the construction costs of LNG export terminals are rising exponentially, thereby squeezing the return on certain projects. Companies in line to suffer in this way will be underweighted. Our clear preference is for oil and gas companies that are well positioned on the global cost curve. Another theme in which we are continuing to invest is E&P (exploration and production) companies. These companies prospect for oil and gas fields on the basis of seismological data interpreted by their geologists. Potential finds create a great deal of shareholder value. In order to spread the risks our preference is to invest in a basket, as these companies have a particularly high risk-profile. Exploration hotshots for 2013 remain the Barents Sea, East Africa , Angola, Gabon and the Gulf of Mexico.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 90.890.090,56 123.331.621,53

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 2.060.919,50 3.084.324,40 C. Shares and similar instruments a) Shares 85.978.654,87 123.045.702,53 Of which securities lent 1.152.754,85 3.809.426,35 D. Other securities 91.982,36

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 174.839,88 95.361,45 B. Payables a) Accounts payable (-) -75.966,30 -184.903,08 c) Borrowings (-) -9,14 -26.489,05 d) Collateral (-) -2.060.919,50 -3.084.324,40

V. Deposits and cash at bank and in hand A. Demand balances at banks 4.801.572,80 540.486,99

VI. Accruals and deferrals A. Expense to be carried forward 5.310,98 B. Accrued income 67.419,09 93.195,11 C. Accrued expense (-) -148.403,00 -237.043,40

TOTAL SHAREHOLDERS' EQUITY 90.890.090,56 123.331.621,53

A. Capital 79.006.255,90 107.242.008,65

B. Income equalization -497.041,24 -767.824,41

C. Profit(Loss) carried forward 15.991.891,72 34.398.473,75

D. Result for the period -3.611.015,82 -17.541.036,46

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 2.060.919,50 3.084.324,40

IX Financial instruments lent 1.152.754,85 3.809.426,35

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares -4.022.480,64 -17.283.379,16 D. Other securities 23.551,08 9.320,54 G. Receivables, deposits, cash at bank and in hand

and payables -0,02 -0,18

H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -1.173.316,70 -1.051.034,71

II. Investment income and expenses A. Dividends 3.749.888,03 3.723.382,14 B. Interests a) Securities and money market instruments 73.081,50 141.156,94 b) Cash at bank and in hand and deposits 20.996,29 22.280,34 C. Interest on borrowings (-) -3.578,43 -18.183,88

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

484.208,31 20.944,06

B. Other 174.982,69

IV. Operating expenses A. Investment transaction and delivery costs (-) -339.753,65 -356.619,27 B. Financial expenses (-) -2.045,33 -53.413,15 C. Custodian's fee (-) -104.036,99 -134.232,35 D. Manager's fee (-) a) Financial management Classic Shares -674.192,61 -2.259.319,05 Institutional B Shares -1.359.104,16 -76.792,24 b) Administration and accounting management -146.123,53 -166.456,36 E. Administrative expenses (-) -325,49 -621,69 F. Formation and organisation expenses (-) -11.133,51 -18.720,57 G. Remuneration, social security charges and

pension -10,60 -47,07

H. Services and sundry goods (-) -27.335,88 -37.282,51 J. Taxes Classic Shares -17.427,37 -92.973,84 Institutional B Shares -5.471,35 37.655,55 K. Other expenses (-) -76.404,77 -121.682,69

Income and expenditure for the period Subtotal II + III + IV 1.561.230,46 784.057,05

V. Profit (loss) on ordinary activities before tax -3.611.015,82 -17.541.036,46

VII. Result for the period -3.611.015,82 -17.541.036,46

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 11.883.834,66 16.089.612,88 Profit (loss) brought forward from the previous

financial year 15.991.891,72 34.398.473,75

Profit for the period available for appropriation -3.611.015,82 -17.541.036,46 Income on the creation of shares (income on the

cancellation of shares) -497.041,24 -767.824,41

II. (Appropriations to) Deductions from capital -11.790.099,76

III. Profit (loss) to be carried forward 15.991.891,72

IV. (Dividends to be paid out) -93.734,90 -97.721,16

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND OIL

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

CALTEX AUSTRALIA LTD - 4.472,00 AUD 19,210 67.648,73 0,08 0,07

ORIGIN ENERGY LTD - 58.046,00 AUD 11,620 531.139,87 0,62 0,58

PALADIN RESOURCES LTD - 15.042,00 AUD 1,030 12.200,38 0,01 0,01

SANTOS LTD. - 39.729,00 AUD 11,100 347.265,06 0,40 0,38

WOODSIDE PETROLEUM LTD - 29.877,00 AUD 33,880 797.096,43 0,93 0,88

WORLEYPARSONS LTD - 3.704,00 AUD 23,360 68.135,63 0,08 0,08

Bermuda

SEADRILL LTD - 12.411,00 NOK 203,300 343.885,45 0,40 0,38

Brazil

OGX PETROLEO E GAS PARTICIPACO - 39.900,00 BRL 4,380 64.738,66 0,08 0,07

PETROBRAS-PETROLEO BRASILEIRO S.A. - 106.454,00 BRL 19,550 770.948,58 0,90 0,85

PETROBRAS-PETROLEO BRASILEIRO S.A. PREF 211.545,00 BRL 19,520 1.529.675,27 1,78 1,68

Canada

ARC RESOURCES LTD - 5.373,00 CAD 24,440 100.035,13 0,12 0,11

CAMECO CORPORATION - 21.277,00 CAD 19,590 317.526,04 0,37 0,35

CANADIAN NATURAL RESOURCES LTD - 28.465,00 CAD 28,640 621.038,78 0,72 0,68

CANADIAN OIL SANDS LTD - 12.048,00 CAD 20,170 185.120,87 0,22 0,20

CRESCENT POINT ENERGY CORP - 5.389,00 CAD 37,620 154.440,60 0,18 0,17

ENBRIDGE INC. - 18.992,00 CAD 43,020 622.408,65 0,72 0,69

ENCANA CORP - 38.603,00 CAD 19,660 578.148,08 0,67 0,64

ENERPLUS RESOURCES FUND - 7.318,00 CAD 12,900 71.914,53 0,08 0,08

ETRION CORP - 1.932,00 SEK 2,180 491,06 0,00 0,00

HUSKY ENERGY INC - 11.066,00 CAD 29,400 247.840,63 0,29 0,27

IMPERIAL OIL LTD - 11.750,00 CAD 42,730 382.476,96 0,44 0,42

NEXEN INC - 18.424,00 CAD 26,700 374.739,70 0,44 0,41

NIKO RESOURCES LTD - 1.455,00 CAD 10,650 11.804,49 0,01 0,01

PACIFIC RUBIALES ENERGY CORP - 34.632,00 CAD 23,110 609.694,16 0,71 0,67

PENN WEST ENERGY TRUST - 10.090,00 CAD 10,800 83.013,64 0,10 0,09

SUNCOR ENERGY INC - 60.897,00 CAD 32,710 1.517.438,01 1,76 1,67

TALISMAN ENERGY INC. - 34.773,00 CAD 11,250 298.008,87 0,35 0,33

TRANSCANADA CORP - 18.381,00 CAD 47,020 658.394,62 0,77 0,72

ULTRA PETROLEUM CORP - 28.666,00 USD 18,130 394.200,99 0,46 0,43

WESTERNZAGROS RESOURCES LTD - 2.440,00 CAD 1,100 2.044,64 0,00 0,00

China

CHINA COAL ENERGY CO - 188.000,00 HKD 8,420 154.908,16 0,18 0,17

CHINA OILFIELD SERVICES LTD - 140.000,00 HKD 15,980 218.931,96 0,25 0,24

CHINA SHENHUA ENERGY COMPANY LTD - 139.500,00 HKD 33,950 463.466,49 0,54 0,51

PETROCHINA COMPANY LIMITID - 570.000,00 HKD 10,980 612.465,38 0,71 0,67

SINOPEC-CHINA PETROL & CHEM CORP. "A" 652.000,00 HKD 8,780 560.204,33 0,65 0,62

YANZHOU COAL MINING CO LTD - 74.000,00 HKD 12,820 92.837,64 0,11 0,10

Finland

NESTE OIL OYJ - 4.948,00 EUR 9,770 48.341,96 0,06 0,05

France

COMPAGNIE GENERALE DE GEOPHYSIQUE SA - 24.414,00 EUR 22,590 551.512,26 0,64 0,61

TECHNIP SA (PAR) 64,00 EUR 86,840 5.557,76 0,01 0,01

TOTAL - 59.456,00 EUR 39,010 2.319.378,56 2,70 2,55

Hong Kong

CNOOC LTD - 545.000,00 HKD 16,780 894.937,71 1,04 0,99

Hungary

MAGYAR OLAJ-ES GAZIPARI RT. - 3.627,00 HUF 17.755,000 221.129,68 0,26 0,24

India

OIL & NATURAL GAS CORP LTD - 14.750,00 INR 268,000 54.724,01 0,06 0,06

RELIANCE INDUSTRIES LTD - 16.781,00 INR 839,550 195.036,33 0,23 0,22

RELIANCE INDUSTRIES LTD SP GDR "144A" 17.326,00 USD 30,520 401.084,28 0,47 0,44

Italy

ENI - 140.891,00 EUR 18,340 2.583.940,94 3,00 2,84

SAIPEM (MIL) 9.733,00 EUR 29,300 285.176,90 0,33 0,31

Japan

COSMO OIL CO LTD - 25.000,00 JPY 192,000 42.105,26 0,05 0,05

INPEX CORP - 29,00 JPY 457.500,000 116.381,58 0,14 0,13

JX HOLDINGS INC - 94.278,00 JPY 483,000 399.441,00 0,46 0,44

SHOWA SHELL (OIL) SEKIYU - 13.500,00 JPY 488,000 57.789,47 0,07 0,06

TONENGENERAL SEKIYU KK - 10.000,00 JPY 746,000 65.438,60 0,08 0,07

Luxembourg

SUBSEA 7 SA - 9.266,00 NOK 132,100 166.826,39 0,19 0,18

TENARIS SA - 18.750,00 EUR 15,580 292.125,00 0,34 0,32

Netherlands

FUGRO NV CVA 10.522,00 EUR 44,520 468.439,44 0,54 0,52

SBM OFFSHORE NV (AMS) 6.198,00 EUR 10,515 65.171,97 0,08 0,07

Norway

AKER KVAERNER ASA - 5.613,00 NOK 112,900 86.369,15 0,10 0,10

PETROLEUM GEO-SERVICES ASA - 26.247,00 NOK 95,350 341.090,80 0,40 0,38

STATOIL - 29.956,00 NOK 139,000 567.503,13 0,66 0,62

VERIPOS INC - 1.357,00 NOK 22,000 4.068,85 0,01 0,00

Poland

GRUPA LOTOS SA - 10.686,00 PLN 41,200 107.899,71 0,13 0,12

POLSKI KONCERN NAFTOWY ORLEN SA - 24.681,00 PLN 49,500 299.416,59 0,35 0,33

Portugal

GALP ENERGIA SGPS SA - 42.510,00 EUR 11,760 499.917,60 0,58 0,55

Russia

GAZPROM ADR NEW 327.615,00 USD 9,460 2.350.756,90 2,73 2,59

LUKOIL - 8.154,00 USD 66,150 409.122,50 0,48 0,45

NOVATEK OAO - 5.326,00 USD 119,800 483.961,47 0,56 0,53

ROSNEFT OIL COMPANY - 56.246,00 USD 8,910 380.121,25 0,44 0,42

SURGUTNEFTEGAZ OIL ADR NEW 28.144,00 USD 8,800 187.854,37 0,22 0,21

TATNEFT - 10.553,00 USD 43,570 348.751,68 0,41 0,38

TMK OAO - 6.673,00 USD 15,310 77.490,62 0,09 0,09

South Africa

SASOL LTD - 17.442,00 ZAR 362,800 565.713,46 0,66 0,62

South Korea

GS HOLDINGS CORP - 5.724,00 KRW 72.000,000 291.989,09 0,34 0,32

S-OIL CORP - 4.483,00 KRW 104.000,000 330.321,30 0,38 0,36

SK ENERGY CO LTD - 2.644,00 KRW 174.000,000 325.945,66 0,38 0,36

Spain

REPSOL INTL FINANCE - 45.014,00 EUR 15,335 690.289,69 0,80 0,76

Thailand

PTT EXPLORATION PRODUCTION (L) 33.149,00 THB 164,000 134.799,14 0,16 0,15

PTT EXPLORATION PRODUCTION FOREIGN 6.490,00 THB 164,000 26.391,34 0,03 0,03

PTT PLC -LOC- 18.013,00 THB 332,000 148.284,92 0,17 0,16

Turkey

TUPRAS-TURKIYE PETROL RAF. A.S. - 5.526,00 TRY 51,500 120.947,30 0,14 0,13

U.K.

AMEC - 14.440,00 GBP 10,030 178.563,93 0,21 0,20

BG GROUP PLC - 160.350,00 GBP 10,125 2.001.656,70 2,33 2,20

BP PLC - 689.627,00 GBP 4,248 3.611.805,57 4,20 3,97

ENQUEST PLC - 9.395,00 GBP 1,200 13.899,64 0,02 0,02

ENQUEST PLC - 11.403,00 SEK 12,800 17.017,82 0,02 0,02

ROYAL DUTCH SHELL PLC -A- 133.769,00 EUR 25,975 3.474.649,78 4,04 3,82

ROYAL DUTCH SHELL PLC -B- 100.934,00 GBP 21,750 2.706.589,20 3,15 2,98

TULLOW OIL INC (DUB) 5.788,00 EUR 15,480 89.598,24 0,10 0,10

TULLOW OIL INC (LON) 38.407,00 GBP 12,610 597.105,50 0,69 0,66

U.S.A.

ANADARKO PETROLEUM - 24.551,00 USD 74,310 1.383.787,02 1,61 1,52

APACHE CORP. - 13.144,00 USD 78,500 782.618,33 0,91 0,86

ARCH COAL INC - 15.053,00 USD 7,320 83.577,03 0,10 0,09

BAKER HUGHES INC - 31.053,00 USD 40,840 961.926,97 1,12 1,06

CABOT OIL & GAS CORP - 4.806,00 USD 49,740 181.318,60 0,21 0,20

CAMERON INTERNATIONAL CORP - 8.804,00 USD 56,460 377.028,09 0,44 0,42

CHESAPEAKE ENERGY CORP - 22.772,00 USD 16,620 287.068,14 0,33 0,32

CHEVRON CORP - 74.409,00 USD 108,140 6.103.298,89 7,09 6,72

CIMAREX ENERGY CO. - 2.924,00 USD 57,730 128.035,89 0,15 0,14

CONOCOPHILLIPS - 26.520,00 USD 57,990 1.166.485,74 1,36 1,28

CONSOL ENERGY INC - 11.912,00 USD 32,100 290.029,73 0,34 0,32

DENBURY RESOURCES INC - 13.370,00 USD 16,200 164.285,50 0,19 0,18

DEVON ENERGY - 16.290,00 USD 52,040 643.000,30 0,75 0,71

DIAMOND OFFSHORE DRILLING INC - 3.364,00 USD 67,960 173.405,22 0,20 0,19

ENSCO INTERNATIONAL INC - 7.220,00 USD 59,280 324.637,14 0,38 0,36

EOG RESOURCES INC. - 21.272,00 USD 120,790 1.948.911,47 2,26 2,14

EQT CORP - 10.290,00 USD 58,980 460.333,89 0,54 0,51

EXTERRAN HOLDINGS INC - 2.318,00 USD 21,920 38.539,56 0,05 0,04

EXXON MOBIL CORP - 113.582,00 USD 86,550 7.456.403,29 8,67 8,21

FMC TECHNOLOGIES INC. - 13.809,00 USD 42,830 448.603,97 0,52 0,49

HALLIBURTON CY - 54.947,00 USD 34,690 1.445.776,27 1,68 1,59

HELMERICH & PAYNE,INC. - 7.637,00 USD 56,010 324.445,06 0,38 0,36

HESS CORP - 23.483,00 USD 52,960 943.309,83 1,10 1,04

KINDER MORGAN - 11.847,00 USD 35,330 317.471,56 0,37 0,35

MARATHON OIL CORP. - 28.029,00 USD 30,660 651.827,32 0,76 0,72

MARATHON PETROLEUM CORP - 12.739,00 USD 63,000 608.735,59 0,71 0,67

MURPHY OIL CORPORATION - 8.859,00 USD 59,550 400.146,73 0,47 0,44

NABORS INDUSTRIES LTD - 18.812,00 USD 14,450 206.184,31 0,24 0,23

NATIONAL-OILWELL VARCO INC - 11.655,00 USD 68,350 604.231,83 0,70 0,67

NEWFIELD EXPLORATION CO. - 5.219,00 USD 26,780 106.010,94 0,12 0,12

NOBLE CORP - 13.856,00 USD 34,820 365.948,06 0,43 0,40

NOBLE ENERGY INC - 7.011,00 USD 101,740 541.033,94 0,63 0,60

OCCID. PETROLEUM - 25.413,00 USD 76,610 1.476.706,56 1,72 1,63

PEABODY ENERGY CORP - 13.661,00 USD 26,610 275.727,56 0,32 0,30

PHILLIPS 66 - 16.630,00 USD 53,100 669.791,41 0,78 0,74

PIONEER NATURAL RESOURCES CO - 6.356,00 USD 106,590 513.869,87 0,60 0,57

PLAINS EXPLORATION & PRODUCT - 4.492,00 USD 46,940 159.932,10 0,19 0,18

RANGE RESOURCES CORP - 7.013,00 USD 62,830 334.213,28 0,39 0,37

ROWAN - 2.151,00 USD 31,270 51.017,73 0,06 0,06

SCHLUMBERGER - 69.381,00 USD 69,290 3.646.396,76 4,24 4,01

SEAHAWK DRILLING INC - 319,00 USD 1,280 309,71

SOUTHWESTERN ENERGY CO - 29.217,00 USD 33,410 740.397,43 0,86 0,82

SPECTRA ENERGY CORP - 22.263,00 USD 27,380 462.349,01 0,54 0,51

SUNCOKE ENERGY INC - 3.235,00 USD 15,590 38.253,68 0,04 0,04

TESORO CORP - 10.336,00 USD 44,050 345.343,45 0,40 0,38

TRANSOCEAN SEDCO FOREX INC. - 14.200,00 CHF 40,340 474.666,89 0,55 0,52

TRANSOCEAN SEDCO FOREX INC. - 18.519,00 USD 44,650 627.179,42 0,73 0,69

VALERO ENERGY CORPORATION - 25.164,00 USD 34,120 651.240,66 0,76 0,72

WEATHERFORD INTERNATIONAL - 53.822,00 USD 11,190 456.817,49 0,53 0,50

WILLIAMS COMPAGNIES - 19.757,00 USD 32,740 490.628,17 0,57 0,54

WPX ENERGY INC - 6.613,00 USD 14,880 74.637,01 0,09 0,08

Total shares 85.978.654,87 99,89 94,60

Warrants

U.S.A.

KINDER MORGAN 25/05/2017 24.821,00 USD 3,780 71.164,58 0,08 0,08

Total Warrants 71.164,58 0,08 0,08

Rights

Spain

REPSOL YPF SA CP 27/12/2012 45.014,00 EUR 0,462 20.796,47 0,02 0,02

U.K.

ROYAL DUTCH SHELL PLC CP 14/11/12 63,00 EUR 0,338 21,31

Total rights 20.817,78 0,02 0,02

TOTAL SECURITIES PORTFOLIO 86.070.637,23 100,00 94,70

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 2.060.919,50 EUR 1,000 2.060.919,50 2,27

TOTAL RECEIVED COLLATERAL 2.060.919,50 2,27

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 905,18 AUD 1,000 712,80 0,00

KBC GROUP CAD 9.819,46 CAD 1,000 7.480,35 0,01

KBC GROUP CHF 818,09 CHF 1,000 677,90 0,00

KBC GROUP EURO 2.132.924,82 EUR 1,000 2.132.924,82 2,35

KBC GROUP GBP 98.860,24 GBP 1,000 121.884,16 0,13

KBC GROUP HKD -93,40 HKD 1,000 -9,14

KBC GROUP HUF 2.299,65 HUF 1,000 7,90

KBC GROUP JPY 747,00 JPY 1,000 6,55

KBC GROUP NOK 5.329.357,31 NOK 1,000 726.347,56 0,80

KBC GROUP NZD 1.263,51 NZD 1,000 790,63 0,00

KBC GROUP PLN 264,06 PLN 1,000 64,72

KBC GROUP SEK 6.776,08 SEK 1,000 790,05 0,00

KBC GROUP TRY 1.246,15 TRY 1,000 529,60 0,00

KBC GROUP USD 2.042.319,60 USD 1,000 1.549.089,50 1,70

KBC GROUP ZAR 2.911.286,29 ZAR 1,000 260.266,26 0,29

Total demand accounts 4.801.563,66 5,28

TOTAL CASH AT BANK AND IN HAND 4.801.563,66 5,28

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 61.207,33 EUR 1,000 61.207,33 0,07

KBC GROUP INR TE ONTVANGEN 8.208.269,92 INR 1,000 113.632,55 0,13

Total receivables 174.839,88 0,19

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -2.060.919,50 EUR 1,000 -2.060.919,50 -2,27

KBC GROUP EUR PAYABLE -75.966,30 EUR 1,000 -75.966,30 -0,08

Payables -2.136.885,80 -2,35

TOTAL RECEIVABLES AND PAYABLES -1.962.045,92 -2,16

OTHER

Interest receivable EUR 57.444,66 0,06

Accrued interest EUR 9.974,43 0,01

Expenses payable EUR -148.403,00 -0,16

TOTAL OTHER -80.983,91 -0,09

TOTAL NET ASSETS 90.890.090,56 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 2,24 2,09 1,79 2,12 Austria 0,39 0,52 0,00 0,00 Bermuda 0,45 0,23 0,21 0,40 Brazil 3,85 3,43 2,77 2,75 Canada 10,22 9,15 10,08 8,40 China 2,65 2,77 2,26 2,44 Spain 0,74 1,29 0,95 0,83 Finland 0,06 0,06 0,05 0,06 France 5,01 3,81 3,03 3,34 U.K. 15,28 16,95 16,05 14,74 Hong Kong 1,36 1,07 1,15 1,04 Hungary 0,32 0,26 0,23 0,26 India 0,91 0,80 0,73 0,76 Italy 2,17 2,30 3,46 3,33 Japan 0,87 1,04 0,81 0,79 South Korea 1,12 0,93 0,83 1,10 Luxembourg 0,77 0,50 0,80 0,53 Netherlands 0,42 0,63 1,20 0,62 Norway 1,63 1,19 1,11 1,16 Poland 0,50 0,33 0,33 0,47 Portugal 0,24 0,01 0,13 0,58 Russia 5,88 5,12 4,40 4,92 Thailand 0,22 0,28 0,23 0,36 Turkey 0,10 0,13 0,11 0,14 U.S.A. 41,62 44,20 46,54 48,20 South Africa 0,98 0,91 0,75 0,66 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 98,47 98,04 97,64 97,71 Consum(cycl) 0,56 0,75 0,67 0,54 Cons.goods 0,56 0,72 0,56 0,57 Technology 0,41 0,49 0,58 0,64 Utilities 0,00 0,00 0,55 0,54 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 2,26 2,12 1,86 2,01 BRL 3,88 3,49 2,75 2,60 CAD 9,56 9,09 9,35 7,52 CHF 0,00 0,48 0,67 0,52 EUR 13,00 14,33 15,44 14,85 GBP 10,56 11,48 9,89 10,15 HKD 4,09 3,83 3,42 3,30 HUF 0,32 0,26 0,23 0,24 INR 0,34 0,31 0,28 0,40 JPY 0,99 1,05 1,05 0,75 KRW 1,12 0,93 0,82 1,04 NOK 2,28 1,59 1,52 2,46 PLN 0,58 0,33 0,42 0,45 SEK 0,01 0,01 0,01 0,02 THB 0,22 0,28 0,23 0,34 TRY 0,11 0,12 0,15 0,13 USD 49,70 49,38 51,16 52,31 ZAR 0,98 0,92 0,75 0,91 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND OIL (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 72.360.159,36 45.809.789,71 118.169.949,07 Sales 63.199.058,29 86.855.848,69 150.054.906,98 Total 1 135.559.217,65 132.665.638,39 268.224.856,05 Subscriptions 102.516.280,69 70.792.656,04 173.308.936,73 Redemptions 93.426.540,64 107.844.859,42 201.271.400,06 Total 2 195.942.821,33 178.637.515,46 374.580.336,79 Monthly average of total assets

158.031.963,35 138.643.275,84 148.337.619,59

Turnover rate -38,21 % -33,16 % -71,70 %

1st half of year 2nd half of year YearPurchases 72.360.159,36 45.809.789,71 118.169.949,07 Sales 63.199.058,29 86.855.848,69 150.054.906,98 Total 1 135.559.217,65 132.665.638,39 268.224.856,05 Subscriptions 102.516.280,69 70.792.656,04 173.308.936,73 Redemptions 93.426.540,64 107.844.859,42 201.271.400,06 Total 2 195.942.821,33 178.637.515,46 374.580.336,79 Monthly average of total assets

161.626.348,17 165.295.113,86 172.669.016,55

Corrected turnover rate -37,36 % -27,81 % -61,60 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 2.060.919,50 2.060.919,50 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 257.362,23 34.814,15 193.763,73 18.885,32 224.613,75 51.954,63 276.568,38

2011 - 12 283.095,12 6.795,33 446.889,10 28.116,37 60.819,77 30.633,59 91.453,36

2012 - 12 50.053,12 2.561,94 72.212,85 16.015,38 38.660,03 17.180,15 55.840,18

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 149.399.516,06 17.192.636,64 109.783.592,53 9.098.371,82

2011 - 12 190.607.158,11 3.899.122,26 278.860.971,80 14.870.070,96

2012 - 12 33.442.505,59 1.440.581,08 47.405.705,12 8.914.444,94

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 175.240.632,37 650,46 560,83

2011 - 12 55.183.833,72 633,19 544,28

2012 - 12 33.921.527,15 635,91 543,48

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 113.464,00 5.936,00 107.528,00 107.528,00

2012 - 12 210.315,44 228.347,97 89.495,47 89.495,47

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 68.656.288,23 3.699.320,31

2012 - 12 138.942.539,74 146.252.751,56

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 68.147.787,81 633,77

2012 - 12 56.968.563,42 636,55

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0174962713 EUR -0.86% 4.27% -1.40% 0.0654 29/09/2000 1.87%

DIV BE0174961707 EUR -0.86% 4.30% -1.39% 0.0654 29/09/2000 1.87%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228664031 EUR -0.85% 25/11/2011 8.52%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 4.09 EUR net (5.46 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.655% Classic Shares Capitalization: 1.67% Institutional B Shares Capitalization: 1.637% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 26,283 15,077 57.36%

CSFBSAS 54,489 31,660 58.10%

DEUTSCHE 3,779 1,874 49.58%

HSBC 4,271 2,257 52.86%

JP MORGAN 9,916 5,796 58.45%

MERRILL 11,513 7,124 61.87%

MORGAN STANLEY 12,219 6,579 53.84%

NOMURA 43,346 23,209 53.54%

SOCGEN 2,514 1,257 50.00%

UBSWDR 24,798 13,325 53.74%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 72.779,02 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ARC ENERGY CORP CAD 5.372 24,440 100.016,52

CRESCENT POINT ENERGY CORP CAD 5.295 37,620 151.746,71

HUSKY ENERGY INC CAD 11.065 29,400 247.818,24

MAGYAR OLAJ-ES (BUD) HUF 3.335 17755,000 203.327,12

PENN WEST PETROLEUM LTD CAD 3.700 10,800 30.441,08

POLSKI KONCERN NAFTO PLN 22.699 49,500 275.372,03

SUBSEA 7 SA NOK 8.000 132,100 144.033,15

Total 1.152.754,85

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 1.250.000 EUR 1.337.513,75

OAT FRANCE 2003 4% 25/04/14 EUR 65.000 EUR 70.181,35

FRANCE - 04/55 4.00 % 25/04 EUR 181.000 EUR 221.826,90

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 385.000 EUR 431.397,51

Total 2.060.919,51 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Eurozone

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND EUROZONE

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 2 February 2001 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 264.23 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of euro-area companies.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR The euro crisis and fear that the European banking sector would collapse continued to cast a dark cloud over the market. On top of this, the stock markets were affected by vacillating sentiment about the economic situation, During the first quarter of 2012 relative economic optimism drove markets higher. After the gains slackened in April and May, a fine rally occurred from early June onwards, thereby negating the gloomier economic signals. At the end of December the benchmark (net return) of the fund was some 19% higher than at the end of 2011.

A limited number of sectors were given emphasis in the Equity Fund Eurozone portfolio over the past financial year 2012. The financial sector – a heavyweight in the fund's benchmark (with an average weighting of over 19%) – was underweighted in the portfolio. Given the expensive valuation and lack of price potential, real estate was not included in the portfolio. On account of uncertainties, especially in a number of peripheral markets in the euro area (Spain, Italy and Greece), a number of positions were taken in the bank sector outside of the benchmark. Potential regulatory risk (= political risk) on account of government debts, sluggish growth and low profitability were the most important arguments for underweighting the telecommunications and utilities sectors in the portfolio, despite the high dividend yield. On the basis of valuations, the underweightings of both sectors were virtually halved during the second half of the year, but even so the two sectors remained among the most underweighted in the portfolio. Doubts concerning the sustainability of the margins and of the economic recovery worldwide and in Asia in particular were behind our cautious attitude towards the industrially-related sectors (materials and capital goods). During the first half of the year the underweighting of capital goods was more than offset by an overweighting of materials, as a number of stocks in the latter sector were at historical lows. The worsening economic signals during the second half led to a reduction in the materials sector to a neutral weighting in the portfolio. This consequently left industrial cyclical sectors slightly underweighted. The energy sector was viewed as relatively attractive in terms of valuation and dividend yield, and with upside potential on any recovery in economic growth. The sector was overweighted in the portfolio. Technology benefited from strong growth in new products, good results and margins. The sector was overweighted, but as the momentum of profit revisions declined, the weighting was reduced somewhat. The equity markets’ occasionally pronounced risk aversion translated into relatively good performance by sectors deemed defensive (food and drink manufacturers, domestic goods and personal care). These sectors were overweighted in the portfolio during the portfolio by means of diversification with such names as BAT, Imperial Tobacco, Kerry and Anheuser-Bush. As their valuations grew increasingly generous, their weighting was skimmed off to arrive at a more neutral level. The deteriorating economic signals during the second half led to a more cautious attitude towards the more consumer-oriented cyclical stocks. In the portfolio consumer durables (including BMW, Daimler, LVMH and VW) were on average slightly underweighted in the portfolio during the year as a whole. Pharmaceuticals had been shunned for a long time due to a lack of product innovation, patent expiry and the reforms to healthcare insurance in the US. The sector responded to these challenges by means of reorganisations and the sale of non-strategic divisions. Good cash flows and better results from the pipeline pointed toward a more positive attitude towards the sector. During the first half the healthcare sector had a virtually neutral weighting in the portfolio. Selective profit-taking in response to strong market performances resulted in a slight underweighting of the sector in the second half. KBC Equity Fund Eurozone recorded an investment result of nearly 19% over the past year of 2012.

2.1.8 FUTURE POLICY In Europe the budgetary plans, tighter lending policy of the banks and major uncertainty among consumers and producers will continue to weigh on growth. Recovery is not anticipated until the second half of the year. In the US modest growth is anticipated. Even though the budget deficit is being sharply reduced in 2013, further cutbacks are certainly in prospect in the spring. The picture is very different in the ‘new world’: the strong economic growth is already creating some inflationary pressures in Asia. This means that monetary policy has to steer a much more cautious course. A further switch from export-led economic growth to a model based on domestic demand as the engine of growth in China and the rest of Asia will not just reduce the region's dependence on exports but will also mean lower savings and more imports from the West. Taking account of the uncertainties in respect of both economic performance and government debt in the euro area, any emphasis on particular sectors in the portfolio is likely to remain limited in the near future in terms of both number and scale. The financial sector in the euro area remains confronted by particularly weak economic growth and a debt crisis. In terms of structuring the underweighted position of the sector, the share selection will accordingly extend beyond the euro area. Utilities and the telecommunications sector will remain underweighted for the time being: the arguments for underweighting in 2012 remain in force in 2013. Despite the cheap valuation, the current weighting of energy can no longer be justified. High oil stocks, downward adjustments in demand and a geopolitical risk that cannot be factored in are the most important arguments. In the case of the more consumer-oriented sectors a cautious attitude is favoured. The bias in favour of low beta sectors with solid foundations (including food, drink and tobacco manufacturers) in the portfolio remains indicated for the time being. The industrial cyclical sectors will remain underweighted in the portfolio on balance in the near term. The growth prospects for technology remain in place. The sector remains cheap, also by historical standards, with very healthy balance sheets, and remains overweighted in the portfolio.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 499.064.897,28 177.403.690,59

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 760.323,20 900.081,00 a} Collateral received in the form of bonds 3.409.388,93 392.837,35 C. Shares and similar instruments a) Shares 495.871.341,91 175.671.959,93 Of which securities lent 3.151.510,53 417.994,98 D. Other securities 98.629,79

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 30.401,62 121,89 b) Tax assets 162.132,57 26.132,34 B. Payables a) Accounts payable (-) -280.793,67 -107.084,53 d) Collateral (-) -3.409.388,93 -392.837,35

V. Deposits and cash at bank and in hand A. Demand balances at banks 2.876.993,33 1.005.858,07

VI. Accruals and deferrals A. Expense to be carried forward 2.732,36 B. Accrued income 176.947,59 37.928,85 C. Accrued expense (-) -631.079,06 -134.039,32

TOTAL SHAREHOLDERS' EQUITY 499.064.897,28 177.403.690,59

A. Capital 440.739.871,65 170.191.525,21

B. Income equalization -1.539.966,37 -472.909,04

C. Profit(Loss) carried forward 7.185.586,88 10.647.860,97

D. Result for the period 52.679.405,12 -2.962.786,55

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 3.409.388,93 392.837,35

IX Financial instruments lent 3.151.510,53 417.994,98

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -139.757,80 1.019,20 C. Shares and similar instruments a) Shares 44.074.296,36 -3.768.074,80 D. Other securities -35.908,59 -4.548,04 E. Open-end undertakings for collective investment -270.913,94 F. Derivative financial instruments l) Financial indices Futures and forward contracts 62.751,05 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 969.186,94 518.031,26

II. Investment income and expenses A. Dividends 15.172.648,80 1.341.655,71 B. Interests a) Securities and money market instruments 593.733,67 94.320,18 b) Cash at bank and in hand and deposits 38.608,83 5.283,87 C. Interest on borrowings (-) -1.727,91 -3.116,84

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

1.455.137,25 244.887,12

B. Other 9.733,90

IV. Operating expenses A. Investment transaction and delivery costs (-) -1.912.820,47 -394.192,63 B. Financial expenses (-) -5.230,65 -1.694,38 C. Custodian's fee (-) -143.817,04 -56.039,83 D. Manager's fee (-) a) Financial management Classic Shares -445.393,20 -433.956,35 Institutional B Shares -5.912.499,46 -122.370,09 b) Administration and accounting management -491.875,07 -39.614,33 E. Administrative expenses (-) -857,54 -1.610,08 F. Formation and organisation expenses (-) -33.362,92 -4.037,37 G. Remuneration, social security charges and

pension -65,91 -10,24

H. Services and sundry goods (-) -74.142,35 -9.970,46 J. Taxes Classic Shares -25.676,25 -15.653,97 Institutional B Shares -60.113,41 -13.322,13 K. Other expenses (-) -340.958,16 -101.343,36

Income and expenditure for the period Subtotal II + III + IV 7.811.588,21 498.948,72

V. Profit (loss) on ordinary activities before tax 52.679.405,12 -2.962.786,55

VII. Result for the period 52.679.405,12 -2.962.786,55

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 58.325.025,63 7.212.165,38 Profit (loss) brought forward from the previous

financial year 7.185.586,88 10.647.860,97

Profit for the period available for appropriation 52.679.405,12 -2.962.786,55 Income on the creation of shares (income on the

cancellation of shares) -1.539.966,37 -472.909,04

II. (Appropriations to) Deductions from capital -58.280.059,51

III. Profit (loss) to be carried forward 7.185.586,88

IV. (Dividends to be paid out) -44.966,12 -26.578,50

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND EUROZONE

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 1.274.000,00 EUR 59,680 760.323,20 0,15 0,15

Total bonds 760.323,20 0,15 0,15

Shares

Exchange-listed shares

Belgium

AGEAS NV (BRU) B STRIP-VVPR 583,00 EUR 0,001 0,58

AGEAS NV - 48.478,00 EUR 22,215 1.076.938,77 0,22 0,22

ANHEUSER-BUSCH INBEV NV - 192.593,00 EUR 65,740 12.661.063,82 2,55 2,54

ANHEUSER-BUSCH INBEV NV STRIP-VVPR 1.704,00 EUR 0,001 1,70

KBC GROUP - 31.648,00 EUR 26,150 827.595,20 0,17 0,17

NYRSTAR STRIP VVPR 28.588,00 EUR 0,001 28,59

SIPEF (BRU) 37.158,00 EUR 58,500 2.173.743,00 0,44 0,44

SOLVAY - 22.850,00 EUR 109,350 2.498.647,50 0,50 0,50

TELENET - 8.291,00 EUR 35,650 295.574,15 0,06 0,06

THROMBOGENICS NV - 29.450,00 EUR 42,050 1.238.372,50 0,25 0,25

UMICORE - 21.313,00 EUR 41,690 888.538,97 0,18 0,18

VAN DE VELDE - 115,00 EUR 34,200 3.933,00 0,00 0,00

Denmark

DSV DE SAMMENSLUTTEDE VOGNMAEND - 99.410,00 DKK 145,700 1.941.299,69 0,39 0,39

NOVO NORDISK A/S "B" 41.752,00 DKK 916,500 5.128.763,97 1,03 1,03

Finland

FORTUM CORPORATION - 86.192,00 EUR 14,150 1.219.616,80 0,25 0,24

NOKIAN RENKAAT OYJ - 22.728,00 EUR 30,100 684.112,80 0,14 0,14

UPM-KYMMENE CORP - 100.842,00 EUR 8,805 887.913,81 0,18 0,18

France

ACCOR - 38.118,00 EUR 26,695 1.017.560,01 0,21 0,20

AIR LIQUIDE (L') - 36.725,00 EUR 95,050 3.490.711,25 0,70 0,70

ALSTOM - 39.896,00 EUR 30,135 1.202.265,96 0,24 0,24

ATOS SA - 10.402,00 EUR 52,860 549.849,72 0,11 0,11

AXA - 472.155,00 EUR 13,350 6.303.269,25 1,27 1,26

BIC (PAR) 14.395,00 EUR 90,320 1.300.156,40 0,26 0,26

BNP PARIBAS - 189.997,00 EUR 42,585 8.091.022,25 1,63 1,62

CARREFOUR - 115.000,00 EUR 19,345 2.224.675,00 0,45 0,45

CHRISTIAN DIOR - 12.191,00 EUR 128,250 1.563.495,75 0,32 0,31

COMPAGNIE GENERALE DE GEOPHYSIQUE SA - 26.110,00 EUR 22,590 589.824,90 0,12 0,12

CREDIT AGRICOLE - 193.265,00 EUR 6,084 1.175.824,26 0,24 0,24

FRANCE TELECOM - 91.370,00 EUR 8,339 761.934,43 0,15 0,15

GDF SUEZ - 249.107,00 EUR 15,575 3.879.841,53 0,78 0,78

GDF SUEZ STRIP VVPR 647,00 EUR 0,001 0,65

GEMALTO NV - 15.136,00 EUR 68,000 1.029.248,00 0,21 0,21

GROUPE EUROTUNNEL SA - 410.978,00 EUR 5,840 2.400.111,52 0,48 0,48

ILIAD SA - 10.424,00 EUR 130,050 1.355.641,20 0,27 0,27

IMERYS (PAR) 6.623,00 EUR 48,190 319.162,37 0,06 0,06

LVMH-MOET H.L.VUIT. - 57.756,00 EUR 138,800 8.016.532,80 1,61 1,61

MICHELIN (PAR) 38.516,00 EUR 71,590 2.757.360,44 0,56 0,55

NATIXIS (PAR) 183.511,00 EUR 2,550 467.953,05 0,09 0,09

PERNOD-RICARD - 94.215,00 EUR 87,440 8.238.159,60 1,66 1,65

PINAULT-PRINTEMPS-REDOUTE - 15.432,00 EUR 140,850 2.173.597,20 0,44 0,44

PUBLICIS GROUPE SA - 51.792,00 EUR 45,250 2.343.588,00 0,47 0,47

REMY COINTREAU SA - 5.872,00 EUR 82,730 485.790,56 0,10 0,10

RENAULT (PAR) 38.215,00 EUR 40,685 1.554.777,28 0,31 0,31

REXEL SA (PAR) 81.511,00 EUR 15,440 1.258.529,84 0,25 0,25

SAFRAN SA (PAR) 101.323,00 EUR 32,595 3.302.623,19 0,67 0,66

SAINT GOBAIN - 36.086,00 EUR 32,220 1.162.690,92 0,23 0,23

SANOFI - 262.603,00 EUR 71,390 18.747.228,17 3,78 3,76

SCHNEIDER ELECTRIC SA - 163.946,00 EUR 54,830 8.989.159,18 1,81 1,80

SCOR REGROUPE (PAR) 99.933,00 EUR 20,410 2.039.632,53 0,41 0,41

SOCIETE GENERALE - 188.870,00 EUR 28,340 5.352.575,80 1,08 1,07

SODEXHO ALLIANCE - 20.269,00 EUR 63,720 1.291.540,68 0,26 0,26

STMICROELECTRONICS NV - 131.348,00 EUR 5,368 705.076,06 0,14 0,14

SUEZ ENVIRONNEMENT SA - 216.530,00 EUR 9,109 1.972.371,77 0,40 0,40

TECHNIP SA (PAR) 19.377,00 EUR 86,840 1.682.698,68 0,34 0,34

TELECOM CITY - 88.411,00 GBP 7,865 857.295,67 0,17 0,17

TOTAL - 403.400,00 EUR 39,010 15.736.634,00 3,17 3,15

VINCI S.A. - 68.010,00 EUR 35,960 2.445.639,60 0,49 0,49

VIVENDI - 314.973,00 EUR 16,950 5.338.792,35 1,08 1,07

ZODIAC (PAR) 20.179,00 EUR 83,430 1.683.533,97 0,34 0,34

Germany

ADIDAS AG - 49.357,00 EUR 67,330 3.323.206,81 0,67 0,67

ALLIANZ AG REG 83.303,00 EUR 104,800 8.730.154,40 1,76 1,75

BASF SE - 203.190,00 EUR 71,150 14.456.968,50 2,91 2,90

BAYER AG - 255.227,00 EUR 71,890 18.348.269,03 3,69 3,68

BAYERISCHE MOTOREN WERKE AG - 82.972,00 EUR 72,930 6.051.147,96 1,22 1,21

BEIERSDORF AG - 26.108,00 EUR 61,880 1.615.563,04 0,33 0,32

BRENNTAG AG - 19.164,00 EUR 99,430 1.905.476,52 0,38 0,38

COMMERZBANK AG - 1.040.931,00 EUR 1,434 1.492.695,05 0,30 0,30

CONTINENTAL AG - 16.948,00 EUR 87,590 1.484.475,32 0,30 0,30

DAIMLER AG - 209.024,00 EUR 41,320 8.636.871,68 1,74 1,73

DEUTSCHE BANK AG REG 201.353,00 EUR 32,950 6.634.581,35 1,34 1,33

DEUTSCHE BOERSE AG - 89.348,00 EUR 46,210 4.128.771,08 0,83 0,83

DEUTSCHE POST AG - 19.375,00 EUR 16,600 321.625,00 0,07 0,06

DEUTSCHE TELEKOM INT FIN REG 680.172,00 EUR 8,595 5.846.078,34 1,18 1,17

E.ON SE - 392.605,00 EUR 14,090 5.531.804,45 1,11 1,11

FRAPORT AG - 54.296,00 EUR 43,935 2.385.494,76 0,48 0,48

FRESENIUS SE & CO KGAA (FRA) 27.154,00 EUR 87,100 2.365.113,40 0,48 0,47

HEIDELBERGCEMENT AG - 27.015,00 EUR 45,830 1.238.097,45 0,25 0,25

HENKEL KGAA (FRA) 16.553,00 EUR 51,930 859.597,29 0,17 0,17

HENKEL KGAA PREF 34.891,00 EUR 62,200 2.170.220,20 0,44 0,44

INFINEON TECHNOLOGIES AG - 397.123,00 EUR 6,129 2.433.966,87 0,49 0,49

K+S AG (FRA) 65.228,00 EUR 35,000 2.282.980,00 0,46 0,46

KABEL DEUTSCHLAND HOLDING AG - 45.404,00 EUR 56,570 2.568.504,28 0,52 0,52

LANXESS - 15.911,00 EUR 66,270 1.054.421,97 0,21 0,21

LINDE AG - 22.871,00 EUR 132,000 3.018.972,00 0,61 0,61

MUNCHENER RUCKVERSICHERUNG AG REG 21.020,00 EUR 136,000 2.858.720,00 0,58 0,57

PORSCHE AUTOMOBIL HOLDING SE PREF 29.692,00 EUR 61,700 1.831.996,40 0,37 0,37

SAP AG - 232.050,00 EUR 60,690 14.083.114,50 2,84 2,82

SIEMENS AG REG 156.392,00 EUR 82,200 12.855.422,40 2,59 2,58

THYSSENKRUPP AG - 73.104,00 EUR 17,760 1.298.327,04 0,26 0,26

VOLKSWAGEN AG PREF 38.016,00 EUR 172,150 6.544.454,40 1,32 1,31

WACKER CHEMIE AG - 3.063,00 EUR 49,645 152.062,64 0,03 0,03

Ireland

C.R.H. PLC - 60.864,00 EUR 15,300 931.219,20 0,19 0,19

KERRY GROUP PLC - 29.013,00 EUR 40,055 1.162.115,72 0,23 0,23

Italy

ASSICURAZIONI GENERALI - 160.540,00 EUR 13,740 2.205.819,60 0,44 0,44

AZIMUT HOLDING SPA - 88.500,00 EUR 10,850 960.225,00 0,19 0,19

E.N.E.L. - 1.282.371,00 EUR 3,138 4.024.080,20 0,81 0,81

ENEL GREEN POWER SPA - 340.178,00 EUR 1,411 479.991,16 0,10 0,10

ENI - 690.438,00 EUR 18,340 12.662.632,92 2,55 2,54

FIAT SPA - 226.876,00 EUR 3,790 859.860,04 0,17 0,17

INTESA SANPAOLO SPA - 1.959.605,00 EUR 1,300 2.547.486,50 0,51 0,51

LUXOTTICA GROUP SPA - 35.548,00 EUR 31,070 1.104.476,36 0,22 0,22

MEDIOBANCA (MIL) 303.958,00 EUR 4,662 1.417.052,20 0,29 0,28

PRYSMIAN SPA - 114.655,00 EUR 15,010 1.720.971,55 0,35 0,35

SNAM RETE GAS S.P.A. - 846.319,00 EUR 3,514 2.973.964,97 0,60 0,60

TELECOM ITALIA (MIL) DI RISPARMIO NWE 3.833.174,00 EUR 0,598 2.290.321,47 0,46 0,46

TERNA RETE ELETTRICA NAZIONALE - 253.869,00 EUR 3,024 767.699,86 0,16 0,15

UNICREDIT SPA - 404.677,00 EUR 3,706 1.499.732,96 0,30 0,30

Jersey/The Channel Islands

BEAZLEY PLC - 406.294,00 GBP 1,769 886.122,66 0,18 0,18

WOLSELEY PLC - 42.872,00 GBP 29,000 1.532.841,82 0,31 0,31

Luxembourg

ARCELORMITTAL - 392.267,00 EUR 12,935 5.073.973,65 1,02 1,02

SES GLOBAL - 75.788,00 EUR 21,705 1.644.978,54 0,33 0,33

TENARIS SA - 90.972,00 EUR 15,580 1.417.343,76 0,29 0,28

Netherlands

A.K.Z.O. NOBEL - 71.674,00 EUR 49,745 3.565.423,13 0,72 0,71

AEGON - 538.203,00 EUR 4,803 2.584.989,01 0,52 0,52

ASML HOLDING NV - 73.393,00 EUR 48,000 3.522.864,00 0,71 0,71

DE MASTER BLENDERS 1753 NV - 127.098,00 EUR 8,719 1.108.167,46 0,22 0,22

DELTA LLOYD - 159.845,00 EUR 12,335 1.971.688,08 0,40 0,40

EUROPEAN AERONAUTIC DEF.&SPACE - 112.878,00 EUR 29,500 3.329.901,00 0,67 0,67

FUGRO NV CVA 15.160,00 EUR 44,520 674.923,20 0,14 0,14

HEINEKEN - 36.270,00 EUR 50,470 1.830.546,90 0,37 0,37

ING GROEP NV - 933.248,00 EUR 7,061 6.589.664,13 1,33 1,32

KONINKLIJKE D.S.M. NV (AMS) 30.070,00 EUR 45,790 1.376.905,30 0,28 0,28

KONINKLIJKE PHILIPS ELECTRONICS N.V. - 123.413,00 EUR 19,895 2.455.301,64 0,49 0,49

REED ELSEVIER NV - 218.244,00 EUR 11,185 2.441.059,14 0,49 0,49

ZIGGO BV - 61.009,00 EUR 24,760 1.510.582,84 0,30 0,30

Norway

STOREBRAND ASA - 464.532,00 NOK 26,820 1.698.024,89 0,34 0,34

TELENOR A/S - 55.163,00 NOK 112,200 843.549,12 0,17 0,17

YARA INTL ASA - 29.570,00 NOK 273,800 1.103.454,45 0,22 0,22

Portugal

PORTUGAL TELECOM INT FIN - 191.175,00 EUR 3,749 716.715,08 0,14 0,14

South Korea

SAMSUNG ELECTRONICS - 886,00 KRW 1.522.000,000 955.394,81 0,19 0,19

Spain

AMADEUS IT HOLDING SA - 60.670,00 EUR 19,050 1.155.763,50 0,23 0,23

BANCO BILBAO VIZCAYA ARGENTARIA - 1.000.138,00 EUR 6,960 6.960.960,48 1,40 1,40

BANCO SANTANDER CENTRAL HISPANO SA - 2.005.574,00 EUR 6,100 12.234.001,40 2,46 2,45

EDP RENOVAVEIS SA - 174.067,00 EUR 3,994 695.223,60 0,14 0,14

FERROVIAL SA - 176.308,00 EUR 11,200 1.974.649,60 0,40 0,40

GAS NATURAL SDG - 67.095,00 EUR 13,580 911.150,10 0,18 0,18

IBERDROLA SA - 751.255,00 EUR 4,195 3.151.514,73 0,63 0,63

INDUSTRIA DE DISENO TEXTIL SA - 49.879,00 EUR 105,500 5.262.234,50 1,06 1,05

RED ELECTRICA DE ESPANA - 20.781,00 EUR 37,300 775.131,30 0,16 0,16

REPSOL INTL FINANCE - 213.428,00 EUR 15,335 3.272.918,38 0,66 0,66

TELEFONICA SA - 763.911,00 EUR 10,190 7.784.253,09 1,57 1,56

Sweden

AARHUSKARLSHAMN AB - 28.658,00 SEK 276,000 922.209,68 0,19 0,19

ATLAS COPCO AB AB "B" FRIA 62.928,00 SEK 158,200 1.160.713,74 0,23 0,23

SCA-SVENSKA CELLULOSA AB "B" 113.983,00 SEK 141,000 1.873.846,07 0,38 0,38

SWEDISH MATCH AB - 299.418,00 SEK 218,200 7.617.410,64 1,53 1,53

Switzerland

CS GROUP REG 74.361,00 CHF 22,260 1.371.624,01 0,28 0,28

NESTLE AG REG 44.399,00 CHF 59,600 2.192.724,89 0,44 0,44

U.B.S. REG 73.051,00 CHF 14,270 863.803,26 0,17 0,17

U.K.

AVIVA PLC - 313.811,00 GBP 3,730 1.443.120,49 0,29 0,29

BARCLAYS BANK PLC - 668.391,00 GBP 2,624 2.162.320,29 0,44 0,43

BAT HOLDINS BV - 96.296,00 GBP 31,210 3.705.336,16 0,75 0,74

DRAX GROUP PLC - 131.693,00 GBP 5,445 884.069,02 0,18 0,18

HSBC HOLDING PLC - 193.528,00 GBP 6,469 1.543.499,73 0,31 0,31

LONDON STOCK EXCHANGE GRP PLC - 53.369,00 GBP 10,880 715.885,49 0,14 0,14

PENNON GROUP PLC - 204.237,00 GBP 6,250 1.573.765,57 0,32 0,32

RIO TINTO PLC - 57.898,00 GBP 35,115 2.506.581,52 0,51 0,50

ROLLS ROYCE GROUP PLC - 120.423,00 GBP 8,735 1.296.874,50 0,26 0,26

ROYAL DUTCH SHELL PLC -A- 68.754,00 EUR 25,975 1.785.885,15 0,36 0,36

SABMILLER PLC - 62.740,00 GBP 28,250 2.185.186,78 0,44 0,44

SMITHS GROUP PLC - 80.144,00 GBP 11,910 1.176.815,49 0,24 0,24

TATE&LYLE PLC - 92.384,00 GBP 7,620 867.915,28 0,18 0,17

WEIR GROUP PLC (THE) - 59.463,00 GBP 18,790 1.377.524,07 0,28 0,28

3IGROUP - 333.617,00 GBP 2,172 893.374,58 0,18 0,18

U.S.A.

GENERAL ELEC CAP CORP - 135.315,00 USD 20,990 2.154.324,83 0,43 0,43

KBR INC - 103.111,00 USD 29,920 2.340.019,05 0,47 0,47

MONSTER BEVERAGE CORP - 43.505,00 USD 52,840 1.743.631,83 0,35 0,35

NU SKIN ENTERPRISES INC "A" 77.398,00 USD 37,050 2.175.057,57 0,44 0,44

TRANSOCEAN SEDCO FOREX INC. - 24.659,00 CHF 40,340 824.282,45 0,17 0,17

Total shares 495.871.341,91 99,83 99,36

Rights

Spain

REPSOL YPF SA CP 27/12/2012 213.428,00 EUR 0,462 98.603,74 0,02 0,02

U.K.

ROYAL DUTCH SHELL PLC CP 14/11/12 77,00 EUR 0,338 26,05

Total rights 98.629,79 0,02 0,02

TOTAL SECURITIES PORTFOLIO 496.730.294,90 100,00 99,53

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 3.409.388,93 EUR 1,000 3.409.388,93 0,68

TOTAL RECEIVED COLLATERAL 3.409.388,93 0,68

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CHF 28.702,32 CHF 1,000 23.783,82 0,01

KBC GROUP DKK 23.485,74 DKK 1,000 3.147,80 0,00

KBC GROUP EURO 2.757.523,10 EUR 1,000 2.757.523,10 0,55

KBC GROUP GBP 57.676,09 GBP 1,000 71.108,48 0,01

KBC GROUP JPY 20.047,00 JPY 1,000 175,85

KBC GROUP NOK 26.740,76 NOK 1,000 3.644,55 0,00

KBC GROUP SEK 15.269,19 SEK 1,000 1.780,29

KBC GROUP USD 20.869,54 USD 1,000 15.829,44 0,00

Total demand accounts 2.876.993,33 0,58

TOTAL CASH AT BANK AND IN HAND 2.876.993,33 0,58

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 16.264,55 EUR 1,000 16.264,55 0,00

KBC GROUP GBP RECEIVABLE 11.466,58 GBP 1,000 14.137,07 0,00

KBC GROUP WHT TO BE RECOVERED EUR 162.132,57 EUR 1,000 162.132,57 0,03

Total receivables 192.534,19 0,04

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-3.409.388,93 EUR 1,000 -3.409.388,93 -0,68

KBC GROUP EUR PAYABLE -280.793,67 EUR 1,000 -280.793,67 -0,06

Payables -3.690.182,60 -0,74

TOTAL RECEIVABLES AND PAYABLES -3.497.648,41 -0,70

OTHER

Interest receivable EUR 51.777,67 0,01

Accrued interest EUR 125.169,92 0,02

Expenses payable EUR -631.079,06 -0,13

TOTAL OTHER -454.131,47 -0,09

TOTAL NET ASSETS 499.064.897,28 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 1,11 0,37 0,00 0,00 Belgium 4,88 4,90 5,47 4,36 Bermuda 0,03 0,00 0,00 0,00 Switzerland 0,00 2,10 1,20 0,89 Cayman Islands 0,00 0,09 0,00 0,00 Germany 30,97 25,37 27,41 29,91 Denmark 0,00 0,31 0,52 1,42 Spain 9,80 8,46 7,86 8,91 Finland 2,30 1,39 0,53 0,56 France 29,15 24,59 26,54 27,35 U.K. 1,73 7,57 7,32 4,86 Ireland 1,38 2,26 1,39 0,57 Italy 7,80 6,44 7,33 7,15 Jersey/The Channel Islands 0,00 0,56 0,22 0,49 Japan 0,00 0,38 0,34 0,00 South Korea 0,00 0,20 0,33 0,19 Luxembourg 1,96 2,11 1,77 1,64 Netherlands 8,38 9,53 8,44 6,64 Norway 0,00 0,52 1,04 0,73 Portugal 0,51 0,88 0,00 0,14 Sweden 0,00 1,36 1,00 2,33 U.S.A. 0,00 0,61 1,29 1,86 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 30,06 30,15 33,54 31,11 Consum(cycl) 14,71 13,64 13,38 15,19 Cons.goods 9,01 12,94 11,81 11,85 Pharma 4,46 5,25 6,41 5,75 Financials 21,91 19,60 18,15 20,66 Technology 4,49 5,25 6,11 5,66 Telecomm. 6,75 6,86 5,12 4,21 Utilities 8,42 6,31 5,48 5,57 Real est. 0,14 0,00 0,00 0,00 Various 0,05 0,00 0,00 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CHF 0,00 2,30 0,02 1,06 DKK 0,00 0,31 0,51 1,42 EUR 98,35 86,92 92,31 87,45 GBP 1,65 7,51 3,44 5,14 JPY 0,00 0,38 0,34 0,00 KRW 0,00 0,20 0,32 0,19 NOK 0,00 0,52 1,02 0,73 SEK 0,00 1,35 0,98 2,32 USD 0,00 0,51 1,06 1,69 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND EUROZONE (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 569.743.603,96 403.756.665,11 973.500.269,07 Sales 225.345.989,90 473.353.682,20 698.699.672,10 Total 1 795.089.593,86 877.110.347,32 1.672.199.941,17 Subscriptions 470.904.027,15 280.243.424,65 751.147.451,80 Redemptions 125.687.122,96 353.955.354,22 479.642.477,18 Total 2 596.591.150,11 634.198.778,87 1.230.789.928,98 Monthly average of total assets

434.237.109,74 540.121.426,79 487.602.805,53

Turnover rate 45,71 % 44,97 % 90,53 %

1st half of year 2nd half of year YearPurchases 569.743.603,96 403.756.665,11 973.500.269,07 Sales 225.345.989,90 473.353.682,20 698.699.672,10 Total 1 795.089.593,86 877.110.347,32 1.672.199.941,17 Subscriptions 470.904.027,15 280.243.424,65 751.147.451,80 Redemptions 125.687.122,96 353.955.354,22 479.642.477,18 Total 2 596.591.150,11 634.198.778,87 1.230.789.928,98 Monthly average of total assets

405.462.953,97 531.593.321,91 479.527.666,39

Corrected turnover rate 48,96 % 45,70 % 92,05 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 3.409.388,93 3.409.388,93 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 16.501,28 205.243,00 41.355,20 195.475,00 103.115,87 153.560,00 256.675,87

2011 - 12 35.743,75 42.082,00 98.640,93 188.592,00 40.218,69 7.050,00 47.268,69

2012 - 12 103.812,11 63.356,72 65.380,08 57.880,99 78.650,72 12.525,73 91.176,45

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 5.377.162,28 57.228.785,47 13.407.342,51 52.195.333,29

2011 - 12 11.104.874,68 12.512.462,72 33.669.091,76 53.137.111,85

2012 - 12 33.271.398,76 16.605.126,90 20.928.962,11 15.296.381,03

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 79.715.487,99 345,20 287,31

2011 - 12 13.446.699,29 292,10 240,95

2012 - 12 30.968.680,95 348,60 283,49

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 567.726,00 6.884,00 560.842,00 560.842,00

2012 - 12 2.186.210,99 1.406.761,43 1.340.291,56 1.340.291,56

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 166.125.174,95 1.986.321,67

2012 - 12 706.003.064,53 450.482.937,09

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 163.956.991,30 292,34

2012 - 12 468.096.216,33 349,25

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0175979211 EUR 18.92% 0.50% -7.92% 0.0267 02/02/2001 -3.01%

DIV BE0175978205 EUR 18.92% 0.42% -7.97% 0.0263 02/02/2001 -3.04%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228543763 EUR 19.04% 24/11/2011 28.35%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 2.69 EUR net (3.59 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.563% Classic Shares Capitalization: 1.603% Institutional B Shares Capitalization: 1.544% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 156,207 89,380 57.22%

CSFBSAS 169,300 93,451 55.20%

DEUTSCHE 205,974 118,195 57.38%

HSBC 16,086 7,846 48.77%

JP MORGAN 16,650 10,282 61.75%

MERRILL 16,395 9,670 58.98%

MORGAN STANLEY 101,598 61,727 60.76%

NOMURA 125,723 73,831 58.73%

SOCGEN 3,090 1,373 44.44%

UBSWDR 180,749 105,670 58.46%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 162.954,46 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

IBERDROLA SA EUR 751.254 4,195 3.151.510,53

Total 3.151.510,53

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

GERMANY 12/13 0,00% 28/08 EUR 6.000 EUR 6.000,48

FRANCE - 04/55 4.00 % 25/04 EUR 2.777.000 EUR 3.403.388,45

Total 3.409.388,93 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Japan

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND JAPAN

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 17 April 1991 Initial subscription price: 75000 JPY Currency: JPY Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 26483 JPY Currency: JPY

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of Japanese companies.

RISK CONCENTRATION Japanese shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund Japan invests in a diverse selection of Japanese companies. The fund underperformed its benchmark, MSCI Japan, in 2012. Over the first half of the 2012, the changing situation in Europe was the primary concern for investors who were in a risk-on, risk-off mode depending primarily on the Eurozone developments. Throughout the first quarter, the situation in Europe continued to improve and markets performed strongly. Investors accepted Greek sovereign debt swap offer and the European Central Bank provided support to troubled European banks. Economists were of opinion that China, the most important trading partner for Brazil and receiver of its commodities-based exports, will experience a slowdown in growth but short of outright recession. Global situation worsened in the second quarter of the year. In France, anti-austerity measures of a newly elected president were in opposition to the so-far dominating view advocated by German Chancellor Angela Merkel and resulted in a widening of an already existing rift in European policy. Investors were concerned that Greece, following local parliamentary elections, may leave with the Eurozone and return to its old currency, the drachma and cause an uncontrolled breakup of the European Monetary Union. Contagion fears spread to another weak link in a European chain – Spain. Its macroeconomic numbers continued to disappoint and Madrid was forced to ask for a bailout as costs of financing in capital markets were too high. Political issues were not the only force behind declines in equities. First half of the year saw a substantial deterioration in macro data globally – not only in Europe that remained in the spotlight, but also in the US and China. As a consequence, markets were very weak and in a risk-off mode, with most risk assets reversing the gains achieved in first months of the year. At the start of the second half of the year, markets moved considerably upwards although the start of the third quarter brought even more disappointing macroeconomic news. The US growth forecast was downgraded and problems in the Eurozone continued. The equity rally gained momentum towards the end of the summer on anticipation that central banks worldwide, and an American monetary authority in particular, will start a new round of monetary easing. The expectations proved to be true when the US Fed announced QE3 in September, along with the aim of keeping interest rates low until at least the middle of 2015. In the final quarter of the year, markets gained some positive momentum in its final months on the expectation that a political resolution of ‘fiscal cliff’ issue in the United States would be found and cuts in spending and increases in taxes, which would likely prompt the US into recession, would be avoided. Other main news over the period were successful leadership transition in China and elections in Japan. In Japan the year started out brightly with markets growing strongly during the first quarter. This rally was primarily driven by foreign investors who were constant net buyers for the quarter, betting on a more aggressive stance from Japan authorities on in their efforts to weaken the Yen. April brought about the end of the Q1 rally as Japan markets fell almost 6% on the back of weaker than expected figures in the US and mounting concerns over Europe. The end of April saw the Bank Of Japan announce a series of monetary easing. Markets were disappointed with the announcement as many investors had been hoping for more aggressive measures. May brought about even further declines in Japanese equities as concerns over Europe continued to mount and fears of a slowing economy in China. The credit rating agency Fitch cut its rating on Japan Yen debt by on notch and foreign debt by two notches to A+. June brought about a much need rebound, the Topix reached a new low since 1983. This rebound was brought about by the unexpected rate cut in China and positive political results in the Greece and Japan. Prime Minister Noda managed to find a compromise with the opposition parties on the increase of VAT from 5% to 10% by 2015, this law was passed by the lower house and must now be approved by the upper house. The second half of the year started on a mixed note, investors remained concerned by the slowing world economy but monetary steps by Europe and the US helped support sentiment. Diplomatic tensions deteriorated between China and Japan over ownership of the Senkaku islands. Anti Japan demonstrations in China had a strong impact on Chinese related stocks, particularly Japanese Auto manufacturers with several companies forced to close plants in China. Japanese companies problems were further compounded by the strong yen. In mid November Prime Minister Noda announced the dissolution of the Lower House and to hold a general election on the 16th of December. This had a positive reaction from investors, who expected that the LDP would be back in power and would implement a more pro-growth and reflationary policy. This announcement also brought about the start of a phase of depreciation in the Yen which last up until the end of the year. The lower election saw the LDP and its coalition partner win by a larger than expected margin, claiming over two thirds of the seats and hold an absolute majority. (Giving them the power to override most decisions made by the Upper House.) The newly elected Prime Minister Mr Abe, called for more bold and aggressive monetary easing, and also threatened the Bank Of Japan to revise the law guaranteeing the Bank Of Japan’s independence.

2.1.8 FUTURE POLICY Looking forward, we believe that 2013 will be a year of sluggish and weak growth for the overall global economy. While global growth is expected to be positive it is not anticipated that it will be much more positive when compared to 2012. Developed markets are being highlighted as the point of weakness with only modest expansion expected. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on global growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to continue their decline in 2013. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. Household incomes and corporate and financial sector rebalancing is expected to continue hindering consumption growth in these regions. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only a short term solution in advance of the debt ceiling debate to follow in February. Inflation is expected to remain contained in developed markets this year allowing monetary policy to focus on growth. In the US, growth is predicted to improve in the second half of the year along with improvement in the housing market and unemployment figures. There is a sense of caution in the market of whether the new Japanese Government will finally be able to break the deflationary cycle in Japan. In January, the new Administration plans to announce a new economic stimulus package. Prime Minister Abe will also appoint a new governor to the BOJ and two deputy governors in the first half of 2013, this will likely lead to a shift in balance on the policy board of the BOJ. It would appear that growth in 2013 will emanate from the same source as 2012, with almost 90% of global GDP growth expected to originate from Emerging Markets. Growth is also expected to continue in China where considerable confidence remains, however it is not expected to surpass the growth of 2012. In relation to the BRIC countries, Brazil is expected to exhibit the most improved growth as its economy rebounds as a result of the monetary and fiscal policies introduced this year. The key macro issues facing Emerging Markets in 2013 are the EU sovereign debt crisis, US fiscal policy and Chinese growth.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 778.791.718,00 887.274.173,00

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 4.558.359,00 4.727.870,00 a} Collateral received in the form of bonds 6.223.015,00 2.608.846,00 C. Shares and similar instruments a) Shares 773.235.541,00 878.435.365,00 Of which securities lent 5.751.092,00 21.827.000,00 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -266.190,00 132.454,00 m) Financial indices Futures and forward contracts (+/-) 418.800,00 75.000,00

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 116.484,00 2.407,00 c) Collateral 210.000,00 B. Payables a) Accounts payable (-) -2.658.571,00 -410.453,00 c) Borrowings (-) -952.072,00 -5.716.232,00 d) Collateral (-) -6.223.015,00 -2.608.846,00

V. Deposits and cash at bank and in hand A. Demand balances at banks 3.918.195,00 9.570.968,00

VI. Accruals and deferrals A. Expense to be carried forward 58.423,00 B. Accrued income 1.398.136,00 1.056.699,00 C. Accrued expense (-) -976.964,00 -868.328,00

TOTAL SHAREHOLDERS' EQUITY 778.791.718,00 887.274.173,00

A. Capital 661.544.399,00 1.151.825.438,00

B. Income equalization -1.633.082,00 716.760,00

D. Result for the period 118.880.401,00 -265.268.025,00

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 6.223.015,00 2.608.846,00

I.A.B Cash at bank and in hand/deposits 210.000,00

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 9.969.000,00 14.525.000,00

IX Financial instruments lent 5.751.092,00 21.827.000,00

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -837.132,00 5.354,00 C. Shares and similar instruments a) Shares 109.842.424,00 -275.768.713,00 F. Derivative financial instruments l) Financial indices Futures and forward contracts 998.650,00 5.906.981,00 G. Receivables, deposits, cash at bank and in hand

and payables 1,00

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -398.644,00 132.454,00 b) Other foreign exchange positions and

transactions 434.709,00 59.845,00

II. Investment income and expenses A. Dividends 21.447.664,00 23.602.153,00 B. Interests a) Securities and money market instruments 1.927.619,00 759.013,00 b) Cash at bank and in hand and deposits 1.491,00 29.286,00 C. Interest on borrowings (-) -29.658,00 -58.958,00

III. Other income B. Other 31.729,00

IV. Operating expenses A. Investment transaction and delivery costs (-) -1.529.752,00 -2.009.735,00 B. Financial expenses (-) -12.967,00 -150.824,00 C. Custodian's fee (-) -742.498,00 -1.202.269,00 D. Manager's fee (-) a) Financial management Classic Shares -10.396.855,00 -14.183.372,00 b) Administration and accounting management -783.739,00 -1.015.843,00 E. Administrative expenses (-) -6.331,00 -2.024,00 F. Formation and organisation expenses (-) -82.194,00 -127.301,00 H. Services and sundry goods (-) -251.161,00 -222.350,00 J. Taxes Classic Shares -619.471,00 -826.360,00 K. Other expenses (-) -81.755,00 -227.091,00

Income and expenditure for the period Subtotal II + III + IV 8.840.393,00 4.396.054,00

V. Profit (loss) on ordinary activities before tax 118.880.401,00 -265.268.025,00

VII. Result for the period 118.880.401,00 -265.268.025,00

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 117.247.319,00 -264.551.265,00 Profit for the period available for appropriation 118.880.401,00 -265.268.025,00 Income on the creation of shares (income on the

cancellation of shares) -1.633.082,00 716.760,00

II. (Appropriations to) Deductions from capital -115.956.220,00 265.564.561,00

IV. (Dividends to be paid out) -1.291.099,00 -1.013.296,00

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND JAPAN

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 67.000,00 EUR 59,680 4.558.359,00 0,59 0,59

Total bonds 4.558.359,00 0,59 0,59

Shares

Exchange-listed shares

Japan

AEON CO LTD. - 8.800,00 JPY 987,000 8.685.600,00 1,12 1,12

AICHI STEEL CORP - 2.000,00 JPY 403,000 806.000,00 0,10 0,10

AISIN SEIKI CO - 2.700,00 JPY 2.664,000 7.192.800,00 0,93 0,92

AJINOMOTO - 8.000,00 JPY 1.143,000 9.144.000,00 1,18 1,17

ALFRESA HOLDINGS CORP - 800,00 JPY 3.370,000 2.696.000,00 0,35 0,35

ALL NIPPON AIRWAYS - 10.000,00 JPY 181,000 1.810.000,00 0,23 0,23

ALPINE ELECTRONICS INC - 751,00 JPY 793,000 595.543,00 0,08 0,08

ALPS ELECTRIC CO - 7.500,00 JPY 516,000 3.870.000,00 0,50 0,50

AMADA - 11.000,00 JPY 555,000 6.105.000,00 0,79 0,78

AMANO CORPORATION - 1.200,00 JPY 750,000 900.000,00 0,12 0,12

AOKI HOLDINGS INC - 300,00 JPY 1.972,000 591.600,00 0,08 0,08

AOYAMA TRADING - 600,00 JPY 1.652,000 991.200,00 0,13 0,13

ASAHI KASEI CORP - 15.000,00 JPY 507,000 7.605.000,00 0,98 0,98

ASTELLAS PHARMA INC - 200,00 JPY 3.875,000 775.000,00 0,10 0,10

AUTOBACS SEVEN - 200,00 JPY 3.620,000 724.000,00 0,09 0,09

AWA BANK LTD/THE - 1.400,00 JPY 492,000 688.800,00 0,09 0,09

BANK OF NAGOYA LTD/THE - 2.000,00 JPY 311,000 622.000,00 0,08 0,08

BANK OF YOKOHAMA - 18.000,00 JPY 400,000 7.200.000,00 0,93 0,93

BML INC - 500,00 JPY 2.105,000 1.052.500,00 0,14 0,14

BRIDGESTONE CORP - 200,00 JPY 2.224,000 444.800,00 0,06 0,06

CALSONIC KANSEI CORP - 6.000,00 JPY 352,000 2.112.000,00 0,27 0,27

CANON INC - 6.400,00 JPY 3.340,000 21.376.000,00 2,75 2,75

CANON MARKETING JAPAN INC - 700,00 JPY 1.235,000 864.500,00 0,11 0,11

CENTRAL JAPAN RAILWAY - 300,00 JPY 7.000,000 2.100.000,00 0,27 0,27

CHUBU ELECTRIC POWER - 1.300,00 JPY 1.150,000 1.495.000,00 0,19 0,19

CHUGOKU BANK LTD/THE - 1.600,00 JPY 1.201,000 1.921.600,00 0,25 0,25

DAI NIPPON PRINTNG - 9.000,00 JPY 673,000 6.057.000,00 0,78 0,78

DAIHATSU MOTOR CO LTD - 5.800,00 JPY 1.711,000 9.923.800,00 1,28 1,27

DAIICHI SANKYO COMPANY LTD - 8.600,00 JPY 1.322,000 11.369.200,00 1,46 1,46

DAIKYO INC - 15.000,00 JPY 234,000 3.510.000,00 0,45 0,45

DAINIPPON SUMITOMO PHARMA CO L - 3.100,00 JPY 1.035,000 3.208.500,00 0,41 0,41

DAITO TRUST CONSTRUCTION - 1.000,00 JPY 8.150,000 8.150.000,00 1,05 1,05

DAIWA HOUSE - 7.000,00 JPY 1.479,000 10.353.000,00 1,33 1,33

DAIWA SECURITIES GROUP INC - 9.000,00 JPY 475,000 4.275.000,00 0,55 0,55

DCM JAPAN HOLDINGS CO LTD - 1.300,00 JPY 568,000 738.400,00 0,10 0,10

DENA CO LTD - 41,00 JPY 2.842,000 116.522,00 0,02 0,02

DYDO DRINCO INC - 100,00 JPY 3.510,000 351.000,00 0,05 0,05

EAST JAPAN RAILWAY - 2.500,00 JPY 5.580,000 13.950.000,00 1,79 1,79

FANUC CORP - 300,00 JPY 15.920,000 4.776.000,00 0,61 0,61

FUJI PHOTO FILM - 5.400,00 JPY 1.723,000 9.304.200,00 1,20 1,20

FUJITELEVISION NETWORK - 9,00 JPY 130.100,000 1.170.900,00 0,15 0,15

FUJITSU LTD - 11.000,00 JPY 360,000 3.960.000,00 0,51 0,51

FUKUYAMA TRANSPORTING CO LTD - 5.400,00 JPY 438,000 2.365.200,00 0,30 0,30

GEO CORP - 6,00 JPY 90.000,000 540.000,00 0,07 0,07

HEIWA CORPORATION - 300,00 JPY 1.401,000 420.300,00 0,05 0,05

HIKARI TSUSHIN - 400,00 JPY 3.330,000 1.332.000,00 0,17 0,17

HINO MOTORS LTD - 9.000,00 JPY 773,000 6.957.000,00 0,89 0,89

HIS CO LTD - 400,00 JPY 2.934,000 1.173.600,00 0,15 0,15

HITACHI - 30.900,00 JPY 504,000 15.573.600,00 2,00 2,00

HITACHI CONSTRUCTION MACHINERY CO - 4.200,00 JPY 1.792,000 7.526.400,00 0,97 0,97

HITACHI METALS LTD - 8.000,00 JPY 731,000 5.848.000,00 0,75 0,75

HOKURIKU ELECTRIC POWER CO - 2.300,00 JPY 1.022,000 2.350.600,00 0,30 0,30

HONDA MOTOR CO - 5.300,00 JPY 3.145,000 16.668.500,00 2,14 2,14

HOSIDEN CORP - 900,00 JPY 530,000 477.000,00 0,06 0,06

IDEMITSU KOSAN CO LTD - 500,00 JPY 7.480,000 3.740.000,00 0,48 0,48

IT HOLDINGS CORP - 1.500,00 JPY 1.041,000 1.561.500,00 0,20 0,20

ITOCHU CORP - 14.900,00 JPY 907,000 13.514.300,00 1,74 1,74

IZUMI CO LTD - 300,00 JPY 1.818,000 545.400,00 0,07 0,07

JAPAN PETROLEUM EXPLORATION CO - 600,00 JPY 3.020,000 1.812.000,00 0,23 0,23

JAPAN RETAIL FD INV CORP - 5,00 JPY 158.600,000 793.000,00 0,10 0,10

JAPAN TOBACCO - 6.329,00 JPY 2.440,000 15.442.760,00 1,99 1,98

JFE HOLDINGS INC - 800,00 JPY 1.602,000 1.281.600,00 0,17 0,17

JUROKU BANK LTD - 6.200,00 JPY 292,000 1.810.400,00 0,23 0,23

JX HOLDINGS INC - 12.349,00 JPY 483,000 5.964.567,00 0,77 0,77

KAKEN PHARMACEUTICAL CO LTD - 200,00 JPY 1.271,000 254.200,00 0,03 0,03

KANDENKO CO LTD - 1.000,00 JPY 388,000 388.000,00 0,05 0,05

KANEKA CORP - 4.000,00 JPY 435,000 1.740.000,00 0,22 0,22

KAO CORP - 3.400,00 JPY 2.249,000 7.646.600,00 0,98 0,98

KEISEI ELECTRIC RAILWAY CO LTD - 2.000,00 JPY 728,000 1.456.000,00 0,19 0,19

KENEDIX REALTY INVESTMENT CORP - 3,00 JPY 301.000,000 903.000,00 0,12 0,12

KISSEI PHARMS. - 300,00 JPY 1.587,000 476.100,00 0,06 0,06

KOMATSU - 1.600,00 JPY 2.184,000 3.494.400,00 0,45 0,45

KONAMI KOGYO - 200,00 JPY 1.932,000 386.400,00 0,05 0,05

KONICA MINOLTA HOLDINGS INC - 12.000,00 JPY 616,000 7.392.000,00 0,95 0,95

KOSE CORP - 300,00 JPY 1.805,000 541.500,00 0,07 0,07

KURABO INDUSTRIES LTD - 3.000,00 JPY 147,000 441.000,00 0,06 0,06

KYORIN HOLDINGS INC - 1.000,00 JPY 1.676,000 1.676.000,00 0,22 0,22

LION CORP - 1.200,00 JPY 439,000 526.800,00 0,07 0,07

MAEDA CORP - 10.500,00 JPY 454,000 4.767.000,00 0,61 0,61

MAEDA ROAD CONSTRN - 700,00 JPY 1.316,000 921.200,00 0,12 0,12

MARUBENI CORP - 19.000,00 JPY 614,000 11.666.000,00 1,50 1,50

MILLEA HOLDINGS INC - 6.100,00 JPY 2.383,000 14.536.300,00 1,87 1,87

MITSUBISHI CORP - 10.400,00 JPY 1.647,000 17.128.800,00 2,20 2,20

MITSUBISHI ESTATE - 1.000,00 JPY 2.049,000 2.049.000,00 0,26 0,26

MITSUBISHI MATER.CORP - 25.000,00 JPY 292,000 7.300.000,00 0,94 0,94

MITSUBISHI UFJ FINANCIAL GROUP - 46.500,00 JPY 461,000 21.436.500,00 2,76 2,75

MITSUBISHI UFJ LEASE & FINANCE - 120,00 JPY 3.690,000 442.800,00 0,06 0,06

MITSUI & CO - 13.100,00 JPY 1.283,000 16.807.300,00 2,16 2,16

MITSUI CHEMICAL INC - 23.700,00 JPY 223,000 5.285.100,00 0,68 0,68

MITSUI FUDOSAN - 1.200,00 JPY 2.090,000 2.508.000,00 0,32 0,32

MITSUI SUMITOMO INSUR GROUP - 2.416,00 JPY 1.705,000 4.119.280,00 0,53 0,53

MIZUHO FINANCIAL GROUP INC. - 41.600,00 JPY 157,000 6.531.200,00 0,84 0,84

MORI SEIKI CO LTD - 2.100,00 JPY 751,000 1.577.100,00 0,20 0,20

NAMCO BANDAI HOLDING INC - 3.700,00 JPY 1.117,000 4.132.900,00 0,53 0,53

NAMURA SHIPBUILDING CO LTD - 1.000,00 JPY 282,000 282.000,00 0,04 0,04

NET ONE SYSTEMS CO LTD - 4.200,00 JPY 850,000 3.570.000,00 0,46 0,46

NEXON CO LTD - 5.000,00 JPY 868,000 4.340.000,00 0,56 0,56

NICHII GAKKAN COMPANY - 1.600,00 JPY 685,000 1.096.000,00 0,14 0,14

NICHIREI CORP - 1.000,00 JPY 450,000 450.000,00 0,06 0,06

NIPPO CORP - 1.000,00 JPY 1.190,000 1.190.000,00 0,15 0,15

NIPPON EXPRESS CO LTD - 13.200,00 JPY 355,000 4.686.000,00 0,60 0,60

NIPPON SHINYAKU CO LTD - 700,00 JPY 973,000 681.100,00 0,09 0,09

NIPPON SHOKUBAI CO LTD - 3.000,00 JPY 882,000 2.646.000,00 0,34 0,34

NIPPON STEEL & SUMITOMO METAL - 1.000,00 JPY 210,000 210.000,00 0,03 0,03

NIPPON TEL & TEL - 3.688,00 JPY 3.630,000 13.387.440,00 1,72 1,72

NIPPON TELEVISION HOLDINGS INC - 400,00 JPY 1.151,000 460.400,00 0,06 0,06

NISSAN MOTOR - 18.200,00 JPY 811,000 14.760.200,00 1,90 1,90

NISSHIN OILLIO GROUP LTD/THE - 1.300,00 JPY 320,000 416.000,00 0,05 0,05

NISSHIN STEEL HOLDINGS CO LTD - 1.400,00 JPY 790,000 1.106.000,00 0,14 0,14

NKSJ HOLDINGS INC - 1.175,00 JPY 1.835,000 2.156.125,00 0,28 0,28

NOMURA REAL ESTATE HOLD INC - 2.500,00 JPY 1.638,000 4.095.000,00 0,53 0,53

NOMURA RESEARCH INSTITUTE LTD - 1.500,00 JPY 1.792,000 2.688.000,00 0,35 0,35

NTN CORP - 4.000,00 JPY 231,000 924.000,00 0,12 0,12

NTT DOCOMO, INC. - 103,00 JPY 124.000,000 12.772.000,00 1,64 1,64

OJI HOLDINGS CORP - 5.000,00 JPY 296,000 1.480.000,00 0,19 0,19

OKUMA CORPORATION - 5.100,00 JPY 588,000 2.998.800,00 0,39 0,39

OKUMURA CORP - 4.000,00 JPY 352,000 1.408.000,00 0,18 0,18

ORIENTAL LAND COMPANY,LTD - 200,00 JPY 10.470,000 2.094.000,00 0,27 0,27

ORIX (ORIENT LEASING) - 1.220,00 JPY 9.690,000 11.821.800,00 1,52 1,52

OSAKA GAS - 24.000,00 JPY 314,000 7.536.000,00 0,97 0,97

OSAKA STEEL CO LTD - 2.600,00 JPY 1.600,000 4.160.000,00 0,54 0,53

OTSUKA HOLDINGS CO LTD - 4.400,00 JPY 2.434,000 10.709.600,00 1,38 1,38

PANASONIC CORPORATION - 300,00 JPY 522,000 156.600,00 0,02 0,02

PLENUS CO LTD - 400,00 JPY 1.400,000 560.000,00 0,07 0,07

RESONA HOLDINGS INC - 19.500,00 JPY 392,000 7.644.000,00 0,98 0,98

RICOH CO - 4.100,00 JPY 907,000 3.718.700,00 0,48 0,48

ROHM CORP. - 1.400,00 JPY 2.799,000 3.918.600,00 0,50 0,50

RYODEN TRADING CO LTD - 1.000,00 JPY 491,000 491.000,00 0,06 0,06

SANKI ENGINEERING CO LTD - 1.000,00 JPY 421,000 421.000,00 0,05 0,05

SANWA SHUTTER CORPORATION - 2.000,00 JPY 379,000 758.000,00 0,10 0,10

SEINO HOLDINGS CO LTD - 1.300,00 JPY 546,000 709.800,00 0,09 0,09

SEKISUI CHEMICAL - 2.000,00 JPY 749,000 1.498.000,00 0,19 0,19

SEKISUI HOUSE LTD - 5.000,00 JPY 942,000 4.710.000,00 0,61 0,61

SEVEN & I HOLDINGS CO LTD - 400,00 JPY 2.437,000 974.800,00 0,13 0,13

SHARP CORP - 3.500,00 JPY 303,000 1.060.500,00 0,14 0,14

SHIN-ETSU CHEM CO - 300,00 JPY 5.230,000 1.569.000,00 0,20 0,20

SHINKO ELECTRIC IND - 2.500,00 JPY 682,000 1.705.000,00 0,22 0,22

SHINSEI BANK LTD - 38.000,00 JPY 171,000 6.498.000,00 0,84 0,83

SHIONOGI & CO - 4.300,00 JPY 1.437,000 6.179.100,00 0,79 0,79

SHOWA DENKO K.K. - 38.000,00 JPY 131,000 4.978.000,00 0,64 0,64

SKY PREFECT JSAT HOLD INC - 21,00 JPY 35.950,000 754.950,00 0,10 0,10

SOFTBANK CORP - 1.900,00 JPY 3.140,000 5.966.000,00 0,77 0,77

SOJITZ CORPORATION - 25.600,00 JPY 127,000 3.251.200,00 0,42 0,42

SONY CORP - 9.478,00 JPY 958,000 9.079.924,00 1,17 1,17

SUMISHO COMPUTER SYSTEMS CORP - 1.000,00 JPY 1.348,000 1.348.000,00 0,17 0,17

SUMITOMO METAL MINING - 1.000,00 JPY 1.208,000 1.208.000,00 0,16 0,16

SUMITOMO MITSUI FINANCIAL GROUP INC - 8.000,00 JPY 3.115,000 24.920.000,00 3,20 3,20

SUMITOMO RUBBER IND. - 3.800,00 JPY 1.035,000 3.933.000,00 0,51 0,51

SUMITOMO WAREHOUSES LTD - 1.900,00 JPY 444,000 843.600,00 0,11 0,11

SUZUKEN CO LTD - 1.100,00 JPY 2.429,000 2.671.900,00 0,34 0,34

TAISHO PHARM. - 100,00 JPY 5.920,000 592.000,00 0,08 0,08

TAKASAGO THERM.ENG. - 960,00 JPY 678,000 650.880,00 0,08 0,08

TAKASHIMAYA CORP - 5.000,00 JPY 613,000 3.065.000,00 0,39 0,39

TAKEDA PHARMACEUTICAL CO LTD - 1.300,00 JPY 3.855,000 5.011.500,00 0,64 0,64

TANABE SEIYAKU CO LTD - 2.300,00 JPY 1.126,000 2.589.800,00 0,33 0,33

TODA CORP - 3.000,00 JPY 262,000 786.000,00 0,10 0,10

TOEI - 1.000,00 JPY 449,000 449.000,00 0,06 0,06

TOKAI RIKA CO LTD - 1.900,00 JPY 1.192,000 2.264.800,00 0,29 0,29

TOKAI RUBBER INDUSTRIES INC - 600,00 JPY 865,000 519.000,00 0,07 0,07

TOKYO BROADC. SYSTEM - 1.000,00 JPY 904,000 904.000,00 0,12 0,12

TOKYO GAS CO. LTD - 23.800,00 JPY 395,000 9.401.000,00 1,21 1,21

TOKYO OHKA KOGYO CO LTD - 600,00 JPY 1.698,000 1.018.800,00 0,13 0,13

TOKYU LAND CORPORATION - 5.000,00 JPY 626,000 3.130.000,00 0,40 0,40

TOPPAN PRINTING - 2.100,00 JPY 532,000 1.117.200,00 0,14 0,14

TOSHIBA CORP - 6.000,00 JPY 337,000 2.022.000,00 0,26 0,26

TOSOH CORP - 16.000,00 JPY 206,000 3.296.000,00 0,42 0,42

TOYO SEIKAN - 3.000,00 JPY 1.152,000 3.456.000,00 0,44 0,44

TOYO SUISAN KAISHA LTD - 200,00 JPY 2.298,000 459.600,00 0,06 0,06

TOYOBO CO LTD - 9.000,00 JPY 123,000 1.107.000,00 0,14 0,14

TOYODA GOSEI CO LTD - 1.100,00 JPY 1.739,000 1.912.900,00 0,25 0,25

TOYOTA INDUSTRIES CORP. - 2.300,00 JPY 2.731,000 6.281.300,00 0,81 0,81

TOYOTA MOTOR_CREDIT - 9.300,00 JPY 4.005,000 37.246.500,00 4,82 4,79

TOYOTA TSUSHO CORPORATION - 3.500,00 JPY 2.114,000 7.399.000,00 0,95 0,95

TV ASAHI CORP - 600,00 JPY 1.199,000 719.400,00 0,09 0,09

UNITED URBAN INVESTMENT CORP - 1,00 JPY 99.200,000 99.200,00 0,01 0,01

UNY CO - 4.900,00 JPY 639,000 3.131.100,00 0,40 0,40

WEST JAPAN RAILWAY - 2.700,00 JPY 3.400,000 9.180.000,00 1,18 1,18

YAMADA DENKI - 1.990,00 JPY 3.325,000 6.616.750,00 0,85 0,85

YOKOHAMA RUBBER CO LTD - 5.400,00 JPY 620,000 3.348.000,00 0,43 0,43

Total shares 773.235.541,00 99,39 99,29

Options and futures

Exchange-listed futures

Japan

TOKYO PRICE INDEX MINI MAR 13 6,00 JPY 861,500 5.169.000,00 0,66 0,66

Suspense accounts (futures)

Japan

TOKYO PRICE INDEX MINI MAR 13 -4.750.200,00 JPY 1,000 -4.750.200,00 -0,61 -0,61

Total options and futures 418.800,00 0,05 0,05

Forward contracts JPY -266.190,00 -0,03

TOTAL SECURITIES PORTFOLIO 777.946.510,00 100,00 99,89

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 54.587,85 EUR 1,000 6.223.015,00 0,80

TOTAL RECEIVED COLLATERAL 6.223.015,00 0,80

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO 28.998,73 EUR 1,000 3.305.856,00 0,42

KBC GROUP JPY -952.072,00 JPY 1,000 -952.072,00 -0,12

KBC GROUP USD 597,88 USD 1,000 51.698,00 0,01

Total demand accounts 2.405.482,00 0,31

Managed futures accounts

Belgium

KBC GROUP JPY FUT REK 560.640,84 JPY 1,000 560.641,00 0,07

Total managed futures accounts 560.641,00 0,07

TOTAL CASH AT BANK AND IN HAND 2.966.123,00 0,38

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP JPY RECEIVABLE 116.484,00 JPY 1,000 116.484,00 0,02

Total receivables 116.484,00 0,02

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-54.587,85 EUR 1,000 -6.223.015,00 -0,80

KBC GROUP JPY PAYABLE -2.658.571,00 JPY 1,000 -2.658.571,00 -0,34

Payables -8.881.586,00 -1,14

TOTAL RECEIVABLES AND PAYABLES -8.765.102,00 -1,13

OTHER

Interest receivable JPY 1.062.386,00 0,14

Accrued interest JPY 335.750,00 0,04

Expenses payable JPY -976.964,00 -0,13

TOTAL OTHER 421.172,00 0,05

TOTAL NET ASSETS 778.791.718,00 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium 0,00 0,01 -0,01 -0,03 Ireland 0,00 0,54 0,55 0,59 Japan 100,00 99,45 99,46 99,44 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 27,14 26,09 25,32 25,57 Consum(cycl) 27,67 27,66 27,67 28,10 Cons.goods 6,59 7,40 7,76 7,08 Pharma 6,05 6,41 6,65 6,56 Financials 13,21 13,53 14,17 15,60 Technology 10,34 9,52 9,12 8,09 Telecomm. 4,52 4,61 3,97 4,13 Utilities 3,86 3,91 3,44 2,67 Real est. 0,62 0,87 1,90 2,20 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 EUR -0,13 -0,91 -0,08 0,36 JPY 100,13 100,90 100,07 99,63 USD 0,00 0,01 0,01 0,01 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND JAPAN (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 279.041.877,37 231.702.838,93 510.744.716,30 Sales 422.229.405,26 305.079.365,29 727.308.770,55 Total 1 701.271.282,63 536.782.204,22 1.238.053.486,85 Subscriptions 25.433.007,00 14.085.094,00 39.518.101,00 Redemptions 172.183.386,00 92.149.281,00 264.332.667,00 Total 2 197.616.393,00 106.234.375,00 303.850.768,00 Monthly average of total assets

878.203.134,11 728.748.718,49 801.912.595,59

Turnover rate 57,35 % 59,08 % 116,50 %

1st half of year 2nd half of year YearPurchases 279.041.877,37 231.702.838,93 510.744.716,30 Sales 422.229.405,26 305.079.365,29 727.308.770,55 Total 1 701.271.282,63 536.782.204,22 1.238.053.486,85 Subscriptions 25.433.007,00 14.085.094,00 39.518.101,00 Redemptions 172.183.386,00 92.149.281,00 264.332.667,00 Total 2 197.616.393,00 106.234.375,00 303.850.768,00 Monthly average of total assets

869.990.481,64 727.780.775,90 800.777.218,67

Corrected turnover rate 57,89 % 59,16 % 116,66 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR EUR 54.587,85 6.223.015,00 N/A 31.12.2012

TOPIX MINI MAR 13 JPY 5.169.000,00 5.169.000,00 1.000,00 27.12.2012

KBC AK-VK JPY-EUR 130313-121214 108.0106

JPY 4.800.000,00 4.800.000,00 N/A 14.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 1.138,71 512,14 9.183,46 2.911,00 40.755,40 5.662,14 46.417,54

2011 - 12 1.718,69 1.206,72 15.277,70 1.331,72 27.196,39 5.537,14 32.733,53

2012 - 12 777,41 655,00 7.145,81 2.054,00 20.828,00 4.138,14 24.966,13

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 39.550.200,00 16.311.822,00 309.730.821,00 87.942.254,00

2011 - 12 55.081.581,00 34.447.372,00 473.265.124,00 36.897.555,00

2012 - 12 23.031.085,00 16.636.635,00 214.412.043,00 51.703.325,00

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 1.573.654.854,00 34.359,00 30.615,00

2011 - 12 887.274.173,00 27.630,00 24.532,00

2012 - 12 778.791.718,00 31.816,00 28.063,00

Institutional B Shares Change in number of shares in circulation: Nil Amounts received and paid by the UCI: Nil Net asset value: Nil

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0126163634 EUR 0.90% 2.82% -5.76% -1.23% 17/04/1991 -2.30%

CAP BE0126163634 JPY 15.16% -2.47% -12.30% -2.09% 17/04/1991 -3.87%

DIV BE0152250578 EUR 0.89% 2.79% -5.78% -1.24% 17/04/1991 -2.31%

DIV BE0152250578 JPY 15.15% -2.50% -12.32% -2.11% 17/04/1991 -3.88%

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

Institutional B Shares

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

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in JPY and 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Dividend on ex-dividend date 28/03/2013: 234 JPY net (312 JPY gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.614% Classic Shares Capitalization: 1.597% Institutional B Shares Capitalization: Not applicable * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 665 416 62.52%

CSFBSAS 64 23 36.36%

MERRILL 5,120 3,095 60.44%

MORGAN STANLEY 1,626 963 59.23%

NOMURA 304 111 36.39%

UBSWDR 753 471 62.52%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The TOPIX Index (Tokyo Stock Price Index) is a capitalisation-weighted index of all shares listed on the ‘First Section’ of the Tokyo Stock Exchange. The index was developed with a starting value of 100 on 4 January 1968. Tokyo Stock Exchange holds all ownership rights with regard to the index. Tokyo Stock Exchange in no way underwrites, guarantees or collaborates in the issue and offering of shares of this institution for collective investment. Tokyo Stock Exchange disclaims any liability for the issue and offering of shares of this institution for collective investment. The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 702.200,00 JPY. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ORIX CORP JPY 500 9690,000 4.845.000,00

RICOH JPY 999 907,000 906.092,52

Total 5.751.092,52

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 8.000 JPY 1.114.285

FRANCE 2004 1,60% 25/07/2015 EUR 33.000 JPY 4.834.178

NEDERLAND 2007 4,50% 15/07/17 EUR 2.000 JPY 274.553

Total 6.223.015 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund New Markets

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND NEW MARKETS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 17 April 1991 Initial subscription price: 20000 BEF Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 1254.36 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies in countries where conditions are such as to allow an accelerated economic growth in the short or medium term. More particularly, this involves countries in Asia, Latin America, Central Europe and Eastern Europe.

RISK CONCENTRATION Emerging market shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Equity Fund New Markets invests in a diversified portfolio of equities from emerging markets, primarily the Far East, Latin America and Eastern Europe. These markets have potential for accelerated growth in the medium term; however, the investor must be aware that such markets are more volatile than traditional equity markets. Although it was a volatile year for this fund, the performance was good, with the NAV of KBC Equity Fund New Markets rising from 1333.02 EUR on 29th December 2011 to 1548.72 EUR on 28th December 2012. Global emerging markets outperformed their developed peers in 2012, with most of this outperformance coming in the final quarter. Over the course of the year, international issues were some of the main drivers of equity markets, with emerging markets heavily influenced by this information. The top performing region in 2012 was Emerging Europe, followed closely by Emerging Asia. Latin America was a marked underperformer over the period.

The first quarter was heavily influenced by Europe with positive news from Greece as the country secured acceptance of their debt swap offer. The ECB continued to extend liquidity to European banks through the LTRO. In Russia, despite some unrest, Putin won the Russian presidential election. Markets were strong over this period, with global emerging markets outperforming significantly, particularly in January and February. Moving into the second quarter, the situation in Europe worsened. In May, French socialist, Francois Hollande won the French presidential election. Following parliamentary elections in Greece, it was not possible to form a government and a second election was called for mid-June with the uncertainty continuing in the meantime. At this stage, concern spread to the situation in Spain, with growth disappointing further and banks coming under more pressure. Despite initially stating that the country did not need a bailout, by the end of June, Spain had requested assistance from Europe and the IMF. In mid June, the second Greek election took place, with the New Democracy winning narrowly and forming a government. Throughout this period of uncertainty, markets were very weak globally, with most regions reversing most of the gains achieved in Q1. Global emerging markets underperformed their developed peers over this period of weakness. On the final day of the quarter, EU leaders agreed that Europe would support troubled banks directly, without the need for local governments to add to their debt levels, which caused a significant rally in markets. While in the second quarter Equity Fund New Markets reversed a lot of the gains from the first quarter, the fund maintained a positive overall performance for the full first half. The third quarter had a weak start, with the IMF forecast for 2012 growth in the US being reduced from 2.25% to 2% in the first week of the quarter. Negative headlines continued about the US fiscal cliff as well as the ongoing problems in Euroland. However towards the end of July, markets started to recover and to move upwards. August was a reasonable month for markets, with expectations rising ahead of Bernanke’s speech in Jackson Hole and investors looking to quantitative easing in Europe. Problems continued in Europe, with ongoing concerns and protests against austerity in Greece. September saw a rally in risky assets on the announcement of global policy stimulus. The major event of September occurred on September 13th when the US Fed announced QE3, along with the aim of keeping interest rates low until at least the middle of 2015. The final quarter of 2012 saw a good performance for the Asian region in particular, with the focus returning to domestic issues and in particular the positive news flow from China (discussed further below). Despite concerns on the fiscal cliff ahead at the start of January, markets continued to expect that some sort of resolution would be found on this issue and December saw a strong rise in equity prices. Other positives over the period were the agreement of a bailout for Spanish banks and improved sentiment in Japan following the strong election result. China dominated the headlines in Asia over the year of 2012. Until September, investors were concerned about weakening growth in China, which is the top country position in this fund. Growth was slower than most expected, with the official growth target being lowered to 7.5%. Most domestic activity metrics were weak – industrial production, investment and retail sales. On the positive side, inflation continued to fall, leaving room for policy makers to make changes if needed. While there was some slowdown in employment growth, there was no mass unemployment as was seen in 2008/2009. Following this slowdown, Chinese authorities began to take steps to boost growth. Initially the focus was on increasing investment, with particular focus on water and other environmental areas, utilities, railways and social housing. However at the beginning of June, the People’s Bank of China took the decision to lower lending and deposit rates by 25bps. They also took steps to liberalise the interest rate regime, seen as a significant positive. Continued weakening in the PMI into the third quarter caused a continued loosening of policy in the country. Trade also remained weak across Asia, heavily influenced by the global demand issues. Following the actions taken by policy makers in China earlier in the year, macroeconomic indicators began to improve in Q4. Over the quarter, we saw the completion of a successful leadership transition in the country and while it will be 2013 before the leadership takes action on most items, the transition was completed smoothly which was a positive for the market. China performed very well on this period and positively affected performance across most emerging markets. Within Emerging Europe, the best performing market was Turkey, which decoupled from the overall risk-off/on changes in global sentiment. Turkish GDP grew at 3-4% dispelling worries about a hard landing and the current account deficit steadily improved from the highs of 2011. Fitch upgraded the Turkish credit rating to investment grade in November resulting in fresh capital flowing into the market. The Russian index lagged both developed and emerging markets in 2012. International investors were concerned about long-term negative factors such as high corruption and poor corporate governance as well as strong national protests against Putin’s establishment.

As noted above, Latin America underperformed significantly amongst its emerging market peers in 2012. The weakness in China in the first part of the year affected Brazil, for whom China is the important trading partner. GDP growth for Brazil disappointed relative to expectations and had to be revised downwards, with the estimate at year-end being a lacklustre 1%. The benchmark interest rate in Brazil finished the year at 7.25%, an all-time low, down from 11% at the start of the year, following proactive cuts by the Brazilian Central Bank.

2.1.8 FUTURE POLICY While the outlook currently for emerging markets is more positive than the outlook a year ago, this is not to say that we do not expect any turbulence ahead. Europe has taken some steps to address their issues and the outlook for growth in the US has improved significantly. In China, it appears that the risk of a hard landing has falling significantly, with the stabilisation and improvement in many macroeconomic factors in recent months. We still have some concerns on long-term growth for the country; however the shorter-term outlook has clearly improved in line with our expectations over recent months. Across most Asian markets, we remain in a position where policy makers have the ability to take steps to loosen policy further if they see additional risks to growth, a luxury that policy makers in many developed economies no longer have. The recovery in China will likely be a key driver for the Asian region and policy announcements from the new leadership in 2013 should support growth. Due to its proximity to and dependence on Western Europe, the debt issues being addressed at European level heavily influence the outlook for Emerging Europe. Movement towards resolving some of the outstanding issues during 2013 will be a positive in this regard. Within Latin America, Brazil clearly dominates and following the weak performance in 2012, we are positive on the outlook going forward. Due to the dependence on international trade and China in particular, we are expecting to see a stronger economic picture in 2013. Following the weakness in 2012, valuations are at attractive levels. In summary, the outlook for emerging markets appears to have less risk factors than a year ago. Obviously, concerns remain about the problems in Europe, global trade and the slowing growth in China; however we are positive on the outlook for 2013. Valuations continue to be supportive across the region. As a result, we continue to be positive on the outlook for global emerging markets.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 82.469.472,46 64.016.054,53

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 297.803,20 352.543,50 a} Collateral received in the form of bonds 3.377.390,76 1.534.102,73 C. Shares and similar instruments a) Shares 76.235.695,33 59.602.216,35 Of which securities lent 2.661.896,17 1.619.211,87 D. Other securities 3.580,02 10.201,61 E. Open-end undertakings for collective investment 5.460.072,19 3.793.538,69 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -3.051,44 2.092,85 m) Financial indices Futures and forward contracts (+/-) 3.155,98 -5.597,74

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 485.671,92 21.070,74 c) Collateral 16.049,01 41.414,57 B. Payables a) Accounts payable (-) -200.498,67 -90.655,85 c) Borrowings (-) -188.599,54 -42.623,70 d) Collateral (-) -3.377.390,76 -1.534.102,73

V. Deposits and cash at bank and in hand A. Demand balances at banks 317.410,20 289.980,03

VI. Accruals and deferrals A. Expense to be carried forward 2.251,79 B. Accrued income 102.319,28 115.875,77 C. Accrued expense (-) -60.135,02 -76.254,08

TOTAL SHAREHOLDERS' EQUITY 82.469.472,46 64.016.054,53

A. Capital 43.464.716,87 35.506.951,70

B. Income equalization -3.391,24 -116.277,39

C. Profit(Loss) carried forward 28.436.497,89 44.179.036,29

D. Result for the period 10.571.648,94 -15.553.656,07

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 3.377.390,76 1.534.102,73

I.A.B Cash at bank and in hand/deposits 16.049,01 41.414,57

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 554.155,62 693.286,19

IX Financial instruments lent 2.661.896,17 1.619.211,87

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -54.740,30 399,20 C. Shares and similar instruments a) Shares 10.189.408,65 -14.280.286,83 D. Other securities 3.527,72 -6.546,98 E. Open-end undertakings for collective investment 892.018,86 -769.900,62 F. Derivative financial instruments l) Financial indices Futures and forward contracts 52.788,46 -5.597,74 G. Receivables, deposits, cash at bank and in hand

and payables 0,34 -0,06

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -5.144,29 2.092,85 b) Other foreign exchange positions and

transactions -1.150.585,31 -677.256,21

II. Investment income and expenses A. Dividends 2.002.448,17 1.756.183,61 B. Interests a) Securities and money market instruments 98.810,30 49.730,21 b) Cash at bank and in hand and deposits 4.045,94 3.066,67 C. Interest on borrowings (-) -2.900,95 -3.840,46

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

148.683,18 812,90

B. Other 3.392,28

IV. Operating expenses A. Investment transaction and delivery costs (-) -314.135,95 -220.644,16 B. Financial expenses (-) -911,71 -3.901,78 C. Custodian's fee (-) -50.243,09 -56.025,03 D. Manager's fee (-) a) Financial management Classic Shares -859.572,42 -1.151.281,21 Institutional B Shares -260.077,70 -10.408,99 b) Administration and accounting management -77.964,61 -77.579,20 E. Administrative expenses (-) -266,46 -163,68 F. Formation and organisation expenses (-) -5.981,75 -8.009,02 G. Remuneration, social security charges and

pension -5,91 -16,08

H. Services and sundry goods (-) -13.506,97 -15.545,44 J. Taxes Classic Shares 483,65 -63.436,25 Institutional B Shares 124,52 4.102,66 K. Other expenses (-) -24.653,43 -22.996,71

Income and expenditure for the period Subtotal II + III + IV 644.374,81 183.440,32

V. Profit (loss) on ordinary activities before tax 10.571.648,94 -15.553.656,07

VII. Result for the period 10.571.648,94 -15.553.656,07

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 39.004.755,59 28.509.102,83 Profit (loss) brought forward from the previous

financial year 28.436.497,89 44.179.036,29

Profit for the period available for appropriation 10.571.648,94 -15.553.656,07 Income on the creation of shares (income on the

cancellation of shares) -3.391,24 -116.277,39

II. (Appropriations to) Deductions from capital -38.882.662,20

III. Profit (loss) to be carried forward 28.436.497,89

IV. (Dividends to be paid out) -122.093,39 -72.604,94

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND NEW MARKETS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Open-end funds

UCITS registered with the FSMA

Belgium

HORIZON ACCESS INDIA FD KAP 6.824,70 USD 1.054,780 5.460.072,19 4,68 6,66 6,63

Total investment funds 5.460.072,19 6,66 6,62

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 499.000,00 EUR 59,680 297.803,20 0,36 0,36

Total bonds 297.803,20 0,36 0,36

Shares

Exchange-listed shares

Argentinia

GRUPO FIN. GALICIA SA - 7,00 ARS 4,500 4,86

IRSA 'B' 8,00 ARS 4,800 5,92

MOLINOS RIO DE LE PLATA S.A. - 3,00 ARS 26,000 12,03

MOLINOS RIO DE LE PLATA S.A. 'B' 12.650,00 ARS 25,900 50.550,82 0,06 0,06

Austria

ERSTE GROUP BANK AG - 2.474,00 EUR 24,025 59.437,85 0,07 0,07

Brazil

ALL AMERICA LATINA LOGISTICA - 22.774,00 BRL 8,310 70.106,29 0,09 0,09

AMBEV-CIA DE BEBIDAS DAS AMERICAS PREF 25.643,00 BRL 85,580 812.938,67 0,99 0,99

BANCO BRADESCO S.A. PREF 67.886,00 BRL 35,170 884.441,79 1,08 1,07

BANCO DO BRASIL SA - 16.700,00 BRL 25,600 158.370,07 0,19 0,19

BANCO SANTANDER BRASIL SA/BRAZ - 19.653,00 USD 7,270 108.371,75 0,13 0,13

BM&F BOVESPA SA - 54.800,00 BRL 14,000 284.200,78 0,35 0,35

BR MALLS PARTICIPACOES SA - 15.300,00 BRL 27,020 153.141,69 0,19 0,19

BRADESPAR S.A. PREF 10.900,00 BRL 32,830 132.560,47 0,16 0,16

BRASIL TELECOM PARTICIPACOES S.A. PREF 22.349,00 BRL 8,320 68.880,79 0,08 0,08

BRASKEM SA - 3.500,00 USD 13,350 35.440,69 0,04 0,04

BRF - BRASIL FOODS SA - 19.900,00 BRL 42,190 311.013,52 0,38 0,38

CEMIG-CIA ENERGETICA DE MINAS GERAIS SP ADR 15.779,00 USD 10,860 129.975,68 0,16 0,16

CIA BRAS DISTRIB GRUPO PAO DE ACUCAR ADR 3.177,00 USD 44,390 106.968,32 0,13 0,13

CIA DE CONCESSOES RODOVIARIAS - 31.600,00 BRL 19,450 227.679,20 0,28 0,28

CIA ENERGETICA DE SP - 5.200,00 BRL 19,390 37.350,62 0,05 0,05

CIA HERING - 6.453,00 BRL 41,990 100.374,69 0,12 0,12

CIA PARANAENSE DE ENERGIA-COPEL SP ADR 3.011,00 USD 15,350 35.056,77 0,04 0,04

CIA SANEAMENTO BASICO - 1.715,00 USD 83,570 108.709,46 0,13 0,13

COMPANHIA BRASILEIRA DE MEIOS - 9.980,00 BRL 56,990 210.690,94 0,26 0,26

CPFL ENERGIA SA - 3.650,00 USD 20,960 58.027,91 0,07 0,07

CSN-CIA SIDERURGICA NACIONAL S.A. - 20.500,00 BRL 11,860 90.064,83 0,11 0,11

CVRD-CIA VALE DO RIO DOCE PREF A 51.068,00 BRL 40,870 773.161,39 0,94 0,94

CYRELA BRAZIL REALTY SA - 13.600,00 BRL 17,890 90.129,28 0,11 0,11

DIAGNOSTICOS DA AMERICA - 11.700,00 BRL 13,190 57.167,25 0,07 0,07

ELETROBRAS-CENTR ELETRICAS BRAS S.A. - 20.701,00 BRL 6,330 48.541,33 0,06 0,06

EMBRAER SA - 20.738,00 BRL 14,450 111.007,26 0,14 0,14

GERDAU SA PREF 28.450,00 BRL 17,930 188.964,07 0,23 0,23

GOL LINHAS AEREAS ADR 6.808,00 USD 6,560 33.874,76 0,04 0,04

HRT PARTICIPACOES EM PETROLEO - 10.000,00 BRL 4,730 17.521,76 0,02 0,02

HYPERMARCAS SA - 14.400,00 BRL 16,620 88.656,42 0,11 0,11

IKPC-INDS KLABIN DE PAPEL E CELULOSE PREF 25.100,00 BRL 12,790 118.921,65 0,15 0,14

ITAU UNIBANCO HOLDINGS SA PREF PREF 62.900,00 BRL 33,390 778.007,41 0,95 0,94

ITAUSA-INVESTIMENTOS ITAU SA - 76.657,00 BRL 9,690 275.164,41 0,34 0,33

JBS SA - 20.800,00 BRL 6,000 46.230,78 0,06 0,06

LOJAS AMERICANAS SA -PREF- 21.140,00 BRL 18,330 143.543,69 0,18 0,17

LOJAS RENNER SA - 5.000,00 BRL 79,750 147.712,54 0,18 0,18

METALURGICA GERDAU SA - 11.200,00 BRL 22,900 95.010,19 0,12 0,12

MRV ENGENHARIA E PARTICIPACOES SA - 15.100,00 BRL 11,980 67.011,67 0,08 0,08

MULTIPLAN EMPREENDIMENTOS IMOB - 5.300,00 BRL 60,200 118.192,26 0,14 0,14

NATURA COSMETICOS SA - 7.000,00 BRL 58,640 152.057,79 0,19 0,18

OGX PETROLEO E GAS PARTICIPACO - 40.700,00 BRL 4,380 66.036,67 0,08 0,08

OI SA - 10.680,00 BRL 9,160 36.239,60 0,04 0,04

PDG REALTY SA EMPREENDIMENTOS - 34.900,00 BRL 3,310 42.792,74 0,05 0,05

PETROBRAS-PETROLEO BRASILEIRO S.A. - 87.129,00 BRL 19,550 630.995,35 0,77 0,77

PETROBRAS-PETROLEO BRASILEIRO S.A. PREF 109.285,00 BRL 19,520 790.236,41 0,96 0,96

SOUZA CRUZ S.A. - 15.800,00 BRL 30,810 180.328,95 0,22 0,22

TELEF BRASIL PREF 9.990,00 BRL 49,000 181.333,58 0,22 0,22

TIM PARTICIPACOES SA - 3.950,00 USD 19,820 59.381,83 0,07 0,07

TRACTEBEL ENERGIA SA - 7.400,00 BRL 33,350 91.420,63 0,11 0,11

ULTRAPAR PARTICIPACOES SA - 10.700,00 BRL 46,290 183.479,53 0,22 0,22

USIMINAS-USINAS SIDER. MINAS GERAIS PREF 12.200,00 BRL 12,800 57.847,75 0,07 0,07

VALE SA - 39.700,00 BRL 42,280 621.787,74 0,76 0,75

Cayman Islands

CHAODA MODERN AGRICULTURE HLDS - 636,00 HKD 1,100 68,46

HENGAN INT GROUP COMPANY LTD - 38.000,00 HKD 69,950 260.121,15 0,32 0,32

SHIMAO PROPERTY HOLDINGS LTD - 60.552,00 HKD 14,620 86.632,37 0,11 0,11

TENCENT HOLDINGS - 22.200,00 HKD 249,000 540.949,44 0,66 0,66

XINAO GAS HOLDINGS LTD - 38.000,00 HKD 33,750 125.505,20 0,15 0,15

Chile

BANCO SANTANDER CHILE ADR 11.254,00 USD 28,490 243.193,61 0,30 0,30

COMP. CERVEC. UNIDAS ADS 7.145,00 USD 31,630 171.417,13 0,21 0,21

ENDESA CHILE ADR 8.055,00 USD 48,810 298.213,40 0,36 0,36

ENERSIS SA SP ADR 15.132,00 USD 18,220 209.120,93 0,26 0,25

LATAM AIRLINES GROUP SA -ADR 12.562,00 USD 23,560 224.484,77 0,27 0,27

SOC QUIMICA MINERA CHILE SA ADR "B" 6.189,00 USD 57,640 270.580,98 0,33 0,33

China

AGILE PROPERTY HOLDINGS LTD - 64.000,00 HKD 10,900 68.267,00 0,08 0,08

BANK OF CHINA LTD - H - 2.224.000,00 HKD 3,460 753.035,12 0,92 0,91

CHINA BLUECHEMICAL LTD - 236.000,00 HKD 5,200 120.093,55 0,15 0,15

CHINA CITIC BANK CHINA CITIC BANK 556.800,00 HKD 4,600 250.646,36 0,31 0,30

CHINA COAL ENERGY CO - 199.400,00 HKD 8,420 164.301,53 0,20 0,20

CHINA COMMUNICATIONS CONST-H - 483.253,00 HKD 7,480 353.737,02 0,43 0,43

CHINA CONSTRUCTION BANK - 1.491.042,00 HKD 6,220 907.579,36 1,11 1,10

CHINA GAS HOLDINGS LTD - 110.000,00 HKD 6,100 65.663,93 0,08 0,08

CHINA LIFE INSURANCE CO - 80.300,00 HKD 25,300 198.811,00 0,24 0,24

CHINA MERCHANTS BANK CO LTD - 81.173,00 HKD 17,100 135.835,12 0,17 0,17

CHINA RAILWAY CONSTRUCTION CORP - 225.500,00 HKD 8,810 194.413,67 0,24 0,24

CHINA RAILWAY GROUP LTD - 352.000,00 HKD 4,530 156.043,33 0,19 0,19

CHINA SHENHUA ENERGY COMPANY LTD - 61.865,00 HKD 33,950 205.536,59 0,25 0,25

CHINA SOUTH LOCOMOTIVE AND ROL - 222.000,00 HKD 6,760 146.860,17 0,18 0,18

CHINA ZHONGWANG HOLDINGS LTD - 29.200,00 HKD 2,890 8.258,19 0,01 0,01

DAPHNE INTERNATIONAL HOLDINGS - 98.000,00 HKD 10,620 101.848,57 0,12 0,12

DATANG INTER POWER GENERATION CO LTD - 444.000,00 HKD 2,960 128.611,27 0,16 0,16

DONGFANG ELECTRIC CORP LTD - 48.800,00 HKD 15,640 74.689,74 0,09 0,09

DONGFENG MOTOR CORP - 232.000,00 HKD 11,960 271.533,56 0,33 0,33

EVERGRANDE REAL ESTATE GROUP - 183.000,00 HKD 4,250 76.110,46 0,09 0,09

FUJIAN ZIJIN MINING IND - 456.000,00 HKD 3,050 136.103,42 0,17 0,17

FUSHAN INTERNATIONAL ENERGY GROUP - 564.000,00 HKD 2,850 157.299,85 0,19 0,19

GOLDEN EAGLE RETAIL GROUP LTD - 130.000,00 HKD 19,080 242.731,46 0,30 0,29

GREAT WALL MOTOR CO LTD - 57.000,00 HKD 24,450 136.382,32 0,17 0,17

GUANGZHOU R&F PROPERTIES - 174.400,00 HKD 12,900 220.161,08 0,27 0,27

HUANENG POWER INTL "H" 382.000,00 HKD 7,170 268.032,14 0,33 0,33

IND & COMM BK OF CHINA - 1.938.919,00 HKD 5,500 1.043.582,30 1,27 1,27

JIANGSU EXPRESSWAY COMP LTD - 82.000,00 HKD 7,990 64.115,79 0,08 0,08

JIANGXI COPPER COMPANY LTD. -H- 43.000,00 HKD 20,400 85.842,62 0,11 0,10

LONGFOR PROPERTIES CO LTD - 29.000,00 HKD 15,180 43.079,84 0,05 0,05

MMG LTD - 140.000,00 HKD 3,210 43.978,20 0,05 0,05

PETROCHINA COMPANY LIMITID - 604.000,00 HKD 10,980 648.998,40 0,79 0,79

PICC PROPERTY & CASUALTY -H- 259.400,00 HKD 10,860 275.679,29 0,34 0,33

PING AN INSURANCE GROUP CO - 12.000,00 HKD 64,900 76.213,22 0,09 0,09

SHANDONG WEIGAO GP MEDICAL-H - 64.000,00 HKD 7,710 48.287,94 0,06 0,06

SHANGAI ELECTRIC GROUP CO LTD - 368.000,00 HKD 3,310 119.201,07 0,15 0,15

SIHUAN PHARMACEUTICAL HOLDINGS - 210.000,00 HKD 3,400 69.871,90 0,09 0,09

SINOPEC-CHINA PETROL & CHEM CORP. "A" 740.120,00 HKD 8,780 635.917,84 0,78 0,77

WANT WANT CHINA HOLDINGS LTD - 69.000,00 HKD 10,680 72.114,85 0,09 0,09

WUMART STORES INC - 53.000,00 HKD 16,680 86.511,98 0,11 0,11

ZHAOJIN MINING INDUSTRY CO LTD - 37.500,00 HKD 12,100 44.403,89 0,05 0,05

ZHEJIANG EXPRESSWAY CO. - 180.000,00 HKD 6,100 107.450,07 0,13 0,13

ZHONGSHENG GROUP HOLDINGS LTD - 34.500,00 HKD 11,720 39.568,63 0,05 0,05

Colombia

BANCOLOMBIA SA - 6.867,00 USD 66,580 346.787,67 0,42 0,42

ECOPETROL SA - 11.223,00 USD 59,670 507.946,31 0,62 0,62

Czech Republic

CEZ A.S. - 1.447,00 CZK 680,000 39.207,84 0,05 0,05

Egypt

ORASCOM CONSTRUCTION INDUSTRIE - 5.895,00 USD 40,200 179.747,42 0,22 0,22

ORASCOM TELECOM HOLDING -GDR- 40.307,00 USD 3,138 95.937,02 0,12 0,12

Hong Kong

BEIJING CAPITAL INTL.AIRPORT-H - 100.000,00 HKD 5,550 54.312,19 0,07 0,07

BEIJING ENTERPRISES HOLD LTD - 11.000,00 HKD 50,500 54.361,12 0,07 0,07

BELLE INTERNATIONAL HOLDINGS - 77.000,00 HKD 16,820 126.742,15 0,16 0,15

CHINA EVERBRIGHT-IHD PAC LTD - 86.000,00 HKD 14,940 125.734,19 0,15 0,15

CHINA INSURANCE INTERNATIONAL - 76.800,00 HKD 15,700 117.995,44 0,14 0,14

CHINA MERCHANTS HLDGS INTL - 56.000,00 HKD 24,850 136.181,71 0,17 0,17

CHINA MOBILE LTD. - 131.500,00 HKD 90,250 1.161.387,95 1,42 1,41

CHINA NATIONAL BUILDING MATERI - 206.000,00 HKD 11,340 228.604,42 0,28 0,28

CHINA OVERSEAS LAND & INVEST LTD - 200.764,00 HKD 23,100 453.839,37 0,55 0,55

CHINA RESOURCES LAND - 1.866,00 HKD 21,100 3.852,99 0,01 0,01

CHINA RESOURCES POWER HOLDINGS CO - 31,00 HKD 19,780 60,01

CHINA UNICOM HONG KONG LTD - 168.480,00 HKD 12,420 204.773,76 0,25 0,25

CNOOC LTD - 745.578,00 HKD 16,780 1.224.304,35 1,49 1,49

COSCO PACIFIC - 64.000,00 HKD 11,040 69.143,82 0,08 0,08

DAH CHONG HONG - 56.000,00 HKD 8,150 44.663,22 0,05 0,05

GUANGDONG INVESTMENT - 220.000,00 HKD 6,090 131.112,57 0,16 0,16

HUABAO INTERNATIONAL HOLDINGS - 396.000,00 HKD 3,840 148.809,54 0,18 0,18

KINGBOARD CHEMICALS HOLDIGNS - 40.000,00 HKD 27,500 107.645,79 0,13 0,13

METALLURGICAL CORP OF CHINA LT - 115.000,00 HKD 1,510 16.993,36 0,02 0,02

YUEXIU PROPERTY COMPANY LTD - 328.000,00 HKD 2,450 78.640,14 0,10 0,10

ZHUZHOU CSR TIMES ELECTRIC CO - 44.000,00 HKD 28,700 123.577,36 0,15 0,15

Hungary

GEDEON RICHTER - 1.021,00 HUF 36.210,000 126.950,11 0,16 0,15

MAGYAR OLAJ-ES GAZIPARI RT. - 1.651,00 HUF 17.755,000 100.657,60 0,12 0,12

OTP BANK RT. - 6.074,00 HUF 4.150,000 86.556,90 0,11 0,11

India

BNI TBK PT - 426.000,00 IDR 3.700,000 124.050,65 0,15 0,15

TAMBANG BATUBARA BUKIT ASAM TB - 128.000,00 IDR 15.100,000 152.115,91 0,19 0,18

Indonesia

CHAROEN POKHAND INDONESIA TBK - 271.737,00 IDR 3.650,000 78.060,15 0,10 0,10

INDO FOOD - 294.500,00 IDR 5.850,000 135.590,39 0,17 0,16

INDO TAMBANGRAYA MEGAH PT - 55.000,00 IDR 41.550,000 179.854,56 0,22 0,22

INDOCEMENT TUNGGAL PRAKARSA TB - 145.500,00 IDR 22.450,000 257.079,28 0,31 0,31

JASA MARGA PERSERO TBK PT - 97.500,00 IDR 5.450,000 41.820,46 0,05 0,05

PERUSAHAAN GAS NEGARA PT - 264.000,00 IDR 4.600,000 95.576,14 0,12 0,12

PT ASTRA INTL REG 134.340,00 IDR 7.600,000 80.353,85 0,10 0,10

PT BANK CENTRAL ASIA TBK - 652.500,00 IDR 9.100,000 467.314,91 0,57 0,57

PT BANK MANDIRI - 528.000,00 IDR 8.100,000 336.594,23 0,41 0,41

PT BANK RAKYAT INDONESIA - 885.078,00 IDR 6.950,000 484.121,18 0,59 0,59

PT KALBE FARMA FOREIGN 1.120.000,00 IDR 1.060,000 93.435,44 0,11 0,11

PT TELEKOMUNIKAS 'B' SCRIPLESS 299.979,00 IDR 9.050,000 213.661,94 0,26 0,26

PT UNITED TRACTORS - 52.000,00 IDR 19.700,000 80.622,69 0,10 0,10

SEMEN GRESIK FOREIGN 286.500,00 IDR 15.850,000 357.389,36 0,44 0,43

UNILEVER INDONESIA TBK PT - 27.000,00 IDR 20.850,000 44.305,49 0,05 0,05

Malaysia

AIRASIA BHD - 228.700,00 MYR 2,740 155.427,74 0,19 0,19

ALLIANCE FINANCIAL GROUP BHD - 104.900,00 MYR 4,400 114.482,72 0,14 0,14

AMBANK HOLDINGS BERHAD - 31.733,00 MYR 6,800 53.521,94 0,07 0,07

BERJAYA SPORTS TOTO BHD - 49.600,00 MYR 4,450 54.746,14 0,07 0,07

BRITISH AMERICAN TOBACCO (MALAYSIA) - 7.700,00 MYR 62,000 118.411,59 0,14 0,14

DIGI.COM BHD - 350.000,00 MYR 5,290 459.235,56 0,56 0,56

GENTING MALAYSIA BHD - 49.700,00 MYR 3,550 43.761,94 0,05 0,05

HONG LEONG FINANCIAL GROUP BHD - 15.000,00 MYR 13,200 49.110,80 0,06 0,06

KUALA LUMPUR KEPONG BERHAD - 47.400,00 MYR 24,000 282.163,85 0,34 0,34

PARKSON HOLDINGS BHD - 46.600,00 MYR 5,200 60.103,68 0,07 0,07

PETRONAS CHEMICALS GROUP BHD - 43.600,00 MYR 6,400 69.211,50 0,08 0,08

PETRONAS GAS BHD - 51.500,00 MYR 19,520 249.343,95 0,30 0,30

SIME DARBY BERHAD - 8.522,00 MYR 9,520 20.122,89 0,03 0,02

TENAGA NASIONAL (BHD) - 95,00 MYR 6,940 163,53

UNITED MOTOR WORKS HLDG - 39.200,00 MYR 11,940 116.091,97 0,14 0,14

Mexico

ALFA SA DE CV - 128.700,00 MXN 27,380 205.820,17 0,25 0,25

AMERICA MOVIL S.A. DE C.V. -L- 60,00 MXN 14,900 52,22

AMERICA MOVIL S.A. DE C.V. ADR "L" 55.779,00 USD 23,140 979.009,45 1,19 1,19

CEMEX S.A. DE C.V. CPO 313.043,00 MXN 12,700 232.211,47 0,28 0,28

COCA-COLA FEMSA -L- 12.800,00 MXN 191,340 143.051,26 0,17 0,17

FEMSA - 65.300,00 MXN 129,310 493.197,92 0,60 0,60

GRUPO AEROPORTUARIO DEL PACIFICO SA -B- 39.600,00 MXN 73,570 170.165,65 0,21 0,21

GRUPO FIN.INBURSA 'O' 60.600,00 MXN 39,210 138.785,92 0,17 0,17

GRUPO FINANC NORTE "O" 62.932,00 MXN 83,450 306.742,41 0,37 0,37

GRUPO MODELA "C" 29.300,00 MXN 116,020 198.552,99 0,24 0,24

GRUPO TELEVISA S.A. -CPO- 96.500,00 MXN 68,250 384.685,59 0,47 0,47

GRUPOMEXICO SA -B- 128.090,00 MXN 46,750 349.762,13 0,43 0,42

IND. PENOLES SA -CP- 4.700,00 MXN 650,930 178.693,23 0,22 0,22

MEXICHEM SAB DE CV - 44.600,00 MXN 72,110 187.847,88 0,23 0,23

WAL-MART DE MEXICO SA DE CV "V" 160.752,00 MXN 42,330 397.448,26 0,49 0,48

Netherlands

X5 RETAIL GROUP NV -GDR- 1.475,00 USD 17,850 19.970,23 0,02 0,02

Peru

CIA DE MINAS BUENAVENTURA SA - 5.819,00 USD 35,950 158.671,91 0,19 0,19

CREDICORP LTD. - 2.594,00 USD 146,560 288.362,14 0,35 0,35

SOUTHERN COPPER CORP (NYSE) 6.422,00 USD 37,860 184.418,17 0,23 0,22

Philippines

ABOITIZ EQUITY VENTURES INC - 84.900,00 PHP 52,950 83.038,80 0,10 0,10

ABOITIZ POWER CORP - 61.800,00 PHP 36,950 42.180,37 0,05 0,05

ALLIANCE GLOBAL GROUP INC - 268.100,00 PHP 16,760 83.000,03 0,10 0,10

AYALA CORP - 8.700,00 PHP 517,000 83.083,97 0,10 0,10

AYALA LAND - 107.000,00 PHP 26,450 52.277,75 0,06 0,06

BANCO DE ORO UNIBANK INC - 60.053,00 PHP 72,800 80.755,76 0,10 0,10

BANK OF THE PHILIPPINE ISLAND - 50.500,00 PHP 95,000 88.618,09 0,11 0,11

DMCI HOLDINGS INC - 76.790,00 PHP 53,950 76.525,03 0,09 0,09

INTERNATIONAL CONTAINER TERMIN - 18.600,00 PHP 74,000 25.424,48 0,03 0,03

METROP. BANK & TRUST - 47.900,00 PHP 102,000 90.249,15 0,11 0,11

PHILIPPINE LONG DISTANCE TELEPHONE - 2,00 PHP 2.530,000 93,47

SAN MIGUEL CORP - 3.890,00 PHP 105,400 7.573,52 0,01 0,01

SM PRIME HOLDINGS - 189.000,00 PHP 16,500 57.604,07 0,07 0,07

UNIVERSAL ROBINA CORP - 60.000,00 PHP 83,850 92.931,24 0,11 0,11

Poland

ASSECO POLAND SA - 9.429,00 PLN 45,350 104.797,48 0,13 0,13

BANK PEKAO SA - 2.771,00 PLN 167,500 113.752,05 0,14 0,14

BRE - 408,00 PLN 326,000 32.597,60 0,04 0,04

KERNEL HOLDING SA - 2.660,00 PLN 66,750 43.515,18 0,05 0,05

KGHM POLSKA MIEDZ SA - 3.805,00 PLN 190,000 177.180,60 0,22 0,22

POLISH OIL & GAS - 81.559,00 PLN 5,210 104.139,99 0,13 0,13

POLSKI KONCERN NAFTOWY ORLEN SA - 17.668,00 PLN 49,500 214.338,65 0,26 0,26

POWOSZECHNA KASA OSZCZEDNOSCI BANK - 22.303,00 PLN 36,900 201.696,13 0,25 0,25

POWSZECHNY BANK KREDYTOWY SA - 3.791,00 PLN 437,000 406.015,98 0,50 0,49

SYNTHOS SA - 19.447,00 PLN 5,410 25.784,44 0,03 0,03

Russia

AFK SISTEMA - 4.480,00 USD 20,200 68.640,78 0,08 0,08

GAZPROM ADR NEW 88.953,00 USD 9,460 638.270,16 0,78 0,77

JSC MMC NORILSK NICKEL ADR NEW 9.569,00 USD 18,430 133.765,68 0,16 0,16

LUKOIL - 15.749,00 USD 66,150 790.197,47 0,96 0,96

MAGNIT OSJC - 10.209,00 USD 40,100 310.513,43 0,38 0,38

MECHEL OAO - ADR 2.089,00 USD 6,930 10.980,56 0,01 0,01

MOBILE TELESYSTEMS ADR 16.311,00 USD 18,650 230.734,34 0,28 0,28

NOVATEK OAO - 3.427,00 USD 119,800 311.403,67 0,38 0,38

OGK-5 OJSC - 2.216,00 USD 0,000 0,17

RENFIN LTD - 968,00 USD 75,000 55.066,75 0,07 0,07

ROSNEFT OIL COMPANY - 71.326,00 USD 8,910 482.034,78 0,59 0,59

ROSTELECOM SPON ADR NEW 2.933,00 USD 23,880 53.125,03 0,07 0,06

SBERBANK OF RUSSIA ADR 87.004,00 USD 12,300 811.702,97 0,99 0,98

SEVERSTAL - 9.477,00 USD 12,170 87.481,11 0,11 0,11

SURGUTNEFTEGAZ OIL ADR NEW 37.187,00 USD 8,800 248.214,20 0,30 0,30

TATNEFT - 8.020,00 USD 43,570 265.042,02 0,32 0,32

TGK-5 REG S - 914,00 USD 0,000 0,07

TMK OAO - 4.343,00 USD 15,310 50.433,35 0,06 0,06

URALKALI - 8.311,00 USD 38,210 240.870,23 0,29 0,29

VTB BANK OSJC-GDR-REG S/WI - 8.563,00 USD 3,460 22.472,68 0,03 0,03

Singapore

MMI HOLDINGS LTD - 79.112,00 ZAR 22,170 156.798,18 0,19 0,19

South Africa

ABSA GROUP LTD - 11.247,00 ZAR 164,000 164.897,28 0,20 0,20

AFRICAN BANK INVESTMENTS LIMITED - 28.097,00 ZAR 32,200 80.881,42 0,10 0,10

AFRICAN RAINBOW MINERALS GOLD LTD. - 4.946,00 ZAR 189,900 83.967,66 0,10 0,10

ANGLO AMERICAN PLATINUM LTD - 1.705,00 ZAR 446,330 68.032,03 0,08 0,08

ANGLOGOLD ASHANTI LTD - 10.140,00 ZAR 262,340 237.812,91 0,29 0,29

AVENG LTD - 32.067,00 ZAR 30,660 87.894,85 0,11 0,11

BIDVEST GROUP LTD - 13.250,00 ZAR 215,490 255.255,99 0,31 0,31

FIRSTRAND LTD. - 113.924,00 ZAR 31,000 315.725,65 0,39 0,38

GOLD FIELDS LTD - 22.694,00 ZAR 103,750 210.490,31 0,26 0,26

HARMONY S.AFR. REGD 13.942,00 ZAR 74,000 92.233,72 0,11 0,11

IMPALA PLATINUM HOLDINGS LTD. - 15.079,00 ZAR 167,700 226.067,72 0,28 0,27

MTN GROUP LTD. - 48.469,00 ZAR 177,600 769.555,54 0,94 0,93

NASPERS LTD N 11.774,00 ZAR 543,200 571.763,91 0,70 0,69

NORTHAM PLATINUM LTD - 9.056,00 ZAR 38,000 30.764,72 0,04 0,04

PPC LTD - 39.805,00 ZAR 34,200 121.701,71 0,15 0,15

REMGRO LIMITED / 22.517,00 ZAR 159,200 320.469,38 0,39 0,39

REUNERT LTD - 20.094,00 ZAR 75,350 135.357,59 0,17 0,16

SANLAM LIMITED - 79.924,00 ZAR 44,770 319.887,49 0,39 0,39

SASOL LTD - 16.287,00 ZAR 362,800 528.252,21 0,64 0,64

SHOPRITE HOLDINGS LTD - 14.499,00 ZAR 204,500 265.072,28 0,32 0,32

STANDARD BANK GROUP LTD - 35.140,00 ZAR 118,880 373.459,49 0,46 0,45

STEINHOFF INTL HOLD LTD - 54.498,00 ZAR 27,430 133.640,88 0,16 0,16

TIGER BRANDS LTD. - 7.134,00 ZAR 325,250 207.435,63 0,25 0,25

TRANS HEX GROUP LTD - 955,00 ZAR 3,150 268,93

TRUWORTHS INTERNATIONAL LTD - 18.653,00 ZAR 108,670 181.213,82 0,22 0,22

WOOLWORTHS HOLDINGS LTD - 31.332,00 ZAR 71,000 198.874,64 0,24 0,24

South Korea

CELLTRION INC - 3.321,00 KRW 26.100,000 61.410,68 0,08 0,07

CJ CORP - 1.180,00 KRW 118.500,000 99.068,33 0,12 0,12

DAELIM INDUSTRIAL CO - 713,00 KRW 87.000,000 43.948,42 0,05 0,05

DAEWOO SECURITIES - 5,00 KRW 12.000,000 42,51

DC CHEMICAL CO LTD - 1.895,00 KRW 165.500,000 222.198,80 0,27 0,27

DGB FINANCIAL GROUP INC - 6.040,00 KRW 14.550,000 62.263,63 0,08 0,08

DONGBU INSURANCE CO LTD - 2.840,00 KRW 45.950,000 92.456,69 0,11 0,11

DOOSAN HEAVY INDS & CONSTRUCTION CO - 6.313,00 KRW 45.200,000 202.166,28 0,25 0,25

E-MART CO LTD - 346,00 KRW 238.000,000 58.342,84 0,07 0,07

GLOVISCO CO LTD - 1.744,00 KRW 221.500,000 273.687,34 0,33 0,33

HANKOOK TIRE WORLDWIDE CO LTD - 4.327,00 KRW 47.000,000 144.085,16 0,18 0,18

HANWHA LIFE INSURANCE CO LTD - 16.260,00 KRW 7.760,000 89.395,73 0,11 0,11

HYUNDAI DEPARTMENT STORE CO LTD - 915,00 KRW 159.000,000 103.074,85 0,13 0,13

HYUNDAI DEVELOPMENT CO - 3,00 KRW 21.650,000 46,02

HYUNDAI HYSCO - 1.100,00 KRW 45.450,000 35.421,02 0,04 0,04

HYUNDAI MARINE & FIRE INSURANCE CO - 2.790,00 KRW 33.300,000 65.823,80 0,08 0,08

HYUNDAI MOBIS - 680,00 KRW 288.000,000 138.750,93 0,17 0,17

HYUNDAI MOTOR - 6.154,00 KRW 218.500,000 952.672,07 1,16 1,16

HYUNDAI SECURITIES - 9.380,00 KRW 9.010,000 59.877,29 0,07 0,07

HYUNDAI WIA CORP - 997,00 KRW 173.000,000 122.201,28 0,15 0,15

KB FINANCIAL GROUP INC - 23.253,00 KRW 37.900,000 624.385,35 0,76 0,76

KIA MOTORS CORP. - 2.470,00 KRW 56.500,000 98.873,50 0,12 0,12

KOREA AIR - 4.628,00 KRW 45.300,000 148.534,06 0,18 0,18

KOREA ELECTRIC POWER (KEPCO) CORP - 9,00 KRW 30.450,000 194,16

KOREA GAS CORP - 4.288,00 KRW 75.100,000 228.154,59 0,28 0,28

KOREA INVESTMENT HOLDINGS CO LTD - 2.700,00 KRW 42.550,000 81.395,02 0,10 0,10

KOREA ZINC CO LTD - 872,00 KRW 405.000,000 250.210,78 0,31 0,30

KP CHEMICAL CORP - 9.590,00 KRW 12.100,000 82.212,62 0,10 0,10

KT CORPORATION - 11.710,00 KRW 35.500,000 294.523,36 0,36 0,36

KT&G CORPORATION - 3.912,00 KRW 80.800,000 223.946,72 0,27 0,27

LG CHEM LTD - 513,00 KRW 330.000,000 119.940,49 0,15 0,15

LOTTE SHOPPING CO LTD - 938,00 KRW 377.000,000 250.540,93 0,31 0,30

LS CABLE LTD - 2.278,00 KRW 94.300,000 152.194,84 0,19 0,19

LS INDUSTRIAL SYSTEMS - 1.634,00 KRW 67.100,000 77.679,97 0,10 0,09

MIRAE ASSET SECURITIES CO LTD - 1.490,00 KRW 35.600,000 37.581,21 0,05 0,05

NHN CORP - 2.661,00 KRW 227.000,000 427.962,02 0,52 0,52

POSCO - 2.039,00 KRW 349.000,000 504.170,18 0,62 0,61

S-OIL CORP - 2.627,00 KRW 104.000,000 193.565,48 0,24 0,24

SAMSUNG CARD CO - 2.670,00 KRW 36.500,000 69.046,02 0,08 0,08

SAMSUNG ELECTRO MECHANICS CO. - 1.322,00 KRW 99.200,000 92.913,25 0,11 0,11

SAMSUNG ELECTRONICS - 3.025,00 KRW 1.522.000,000 3.261.929,22 3,98 3,96

SAMSUNG ELECTRONICS PREF 222,00 KRW 852.000,000 134.006,87 0,16 0,16

SAMSUNG ENGINEERING CO LTD - 2.779,00 KRW 165.500,000 325.852,49 0,40 0,40

SAMSUNG FIRE & MARINE INSURANCE CO - 1.456,00 KRW 218.000,000 224.880,80 0,27 0,27

SAMSUNG LIFE INSURANCE CO LTD - 1.008,00 KRW 94.300,000 67.345,21 0,08 0,08

SHINHAN FINANCIAL GROUP CO LTD. - 14.406,00 KRW 38.850,000 396.523,50 0,48 0,48

SK CORP LTD - 2.093,00 KRW 179.000,000 265.434,13 0,32 0,32

SK ENERGY CO LTD - 1.589,00 KRW 174.000,000 195.887,92 0,24 0,24

SK HYNIX INC - 2.380,00 KRW 25.750,000 43.419,89 0,05 0,05

SK TELECOM CO LTD - 2.612,00 KRW 152.500,000 282.213,33 0,34 0,34

WOORI - 44.290,00 KRW 11.800,000 370.273,12 0,45 0,45

YUHAN CORPORATION - 510,00 KRW 173.000,000 62.510,18 0,08 0,08

Taiwan

ACER INC. - 50,00 TWD 25,200 32,91

ADVANCED SEMICONDUCTOR - 106.056,00 TWD 25,200 69.808,31 0,09 0,09

ADVANTECH CO LTD - 27.100,00 TWD 122,500 86.711,51 0,11 0,11

ASUSTEK COMPUTER INC - 39.237,00 TWD 326,500 334.618,79 0,41 0,41

CHENG UEI PRECISION INDUSTRY - 40.709,00 TWD 62,500 66.457,16 0,08 0,08

CHICONY ELECTRONICS CO LTD - 72.760,00 TWD 67,100 127.522,42 0,16 0,16

CHINA MOTOR CORP - 108.000,00 TWD 27,250 76.870,84 0,09 0,09

CHINA PETROCHEMICAL DEVELOPMENT - 97.525,00 TWD 18,000 45.852,16 0,06 0,06

CHINA STEEL CORP - 561,00 TWD 27,350 400,77

FAR EASTONE TELECOMMUNICATIONS - 50.000,00 TWD 74,100 96.774,19 0,12 0,12

FIRST FINANCIAL HOLDING CO - 33,00 TWD 17,700 15,26

FORMOSA INTERNATIONAL HOTELS CORP - 4.400,00 TWD 389,500 44.764,27 0,06 0,05

FUBON FINANCIAL HOLDING CO - 579.405,00 TWD 35,100 531.203,23 0,65 0,64

HIGHWEALTH CONSTRUCTION CORP - 54.400,00 TWD 54,600 77.582,34 0,10 0,09

HIWIN TECHNOLOGIES CORP - 11.550,00 TWD 213,000 64.258,85 0,08 0,08

HON HAI PRECISION - 196.188,00 TWD 88,900 455.559,96 0,56 0,55

HOTAI MOTOR CO LTD - 8.000,00 TWD 233,000 48.687,48 0,06 0,06

INNOLUX DISPLAY CORPORATION - 405.869,00 TWD 15,600 165.379,56 0,20 0,20

LITE-ON TECHNOLOGY CORP - 213.176,00 TWD 38,550 214.651,56 0,26 0,26

MEDIATEK INCORPORATION - 11.708,00 TWD 323,500 98.930,08 0,12 0,12

PEGATRON CORP - 308.047,00 TWD 37,550 302.133,08 0,37 0,37

PHISON ELECTRONICS CORP - 34.000,00 TWD 192,500 170.954,68 0,21 0,21

POU CHEN CORP. - 68.000,00 TWD 30,500 54.172,65 0,07 0,07

PRESIDENT CHAIN STORE CORP - 41.000,00 TWD 155,500 166.527,36 0,20 0,20

PRESIDENT ENTERPRISES - 106.802,00 TWD 53,300 148.688,69 0,18 0,18

RADIANT OPTO-ELECTRONICS CORP - 32.960,00 TWD 119,500 102.878,93 0,13 0,13

REALTEK SEMICONDUCTOR CORP. - 49.560,00 TWD 61,300 79.352,96 0,10 0,10

RICHTEK TECHNOLOGY CORP - 40.000,00 TWD 169,500 177.092,86 0,22 0,22

SHIN KONG FINANCIAL HOLDING CO - 551.000,00 TWD 8,190 117.870,97 0,14 0,14

SILICONWARE PRECISION IND. CO. - 87.000,00 TWD 31,000 70.445,34 0,09 0,09

SIMPLO TECHNOLOGY CO LTD - 66.200,00 TWD 146,000 252.453,96 0,31 0,31

STANDARD FOODS CORP - 41.000,00 TWD 79,500 85.137,78 0,10 0,10

TAISHIN_FINANCIAL HOLD CO - 356.058,00 TWD 11,550 107.417,26 0,13 0,13

TAIWAN CEMENT CORP - 132.596,00 TWD 38,900 134.725,99 0,16 0,16

TAIWAN SEMICONDUCTOR - 762.000,00 TWD 97,000 1.930.625,57 2,36 2,34

TECO ELECTRIC AND MACHINERY CO - 137.000,00 TWD 22,250 79.619,96 0,10 0,10

TPK HOLDING CO LTD - 4.183,00 TWD 513,000 56.050,12 0,07 0,07

TRIPOD TECHNOLOGY CORP - 132.000,00 TWD 62,300 214.799,53 0,26 0,26

TSRC CORP - 72.200,00 TWD 59,000 111.265,51 0,14 0,14

TUNG HO STEEL ENTERPRISE CORP - 45.000,00 TWD 29,700 34.909,23 0,04 0,04

U-MING MARINE TRANSPORT CORP - 34.000,00 TWD 46,450 41.251,14 0,05 0,05

UNITED MICRO ELECTRONICS - 1.215.000,00 TWD 11,700 371.307,30 0,45 0,45

WISTRON CORP - 185.748,00 TWD 30,100 146.036,69 0,18 0,18

YULON MOTOR CO LTD - 45.000,00 TWD 55,000 64.646,73 0,08 0,08

Thailand

ADVANCED INFO SERVICE PUBLIC CO LTD LOCAL 63.000,00 THB 209,000 326.482,34 0,40 0,40

BANGKOK BANK PUBLIC FOREIGN 82.000,00 THB 209,000 424.945,26 0,52 0,52

BANK OF AYUDHYA PCL - 329.500,00 THB 32,500 265.528,80 0,32 0,32

BANK OF AYUDHYA PCL - 5.800,00 THB 32,500 4.673,95 0,01 0,01

BANPU PUBLIC CO LTD -LOC- 17.000,00 THB 412,000 173.667,68 0,21 0,21

CPSEVEN ELEVEN PCL FOREIGN 325.600,00 THB 46,000 371.377,07 0,45 0,45

KASIKORNBANK PLC FOR 84.400,00 THB 193,500 404.945,21 0,49 0,49

PTT EXPLORATION PRODUCTION FOREIGN 90.418,00 THB 164,000 367.681,35 0,45 0,45

PTT PLC -LOC- 72,00 THB 332,000 592,71 0,00 0,00

SIAM CEMENT PUBLIC CO LTD FOREIGN 2.100,00 THB 468,000 24.369,02 0,03 0,03

SIAM COMM. BK. PUBL. CO. LOCAL 109.600,00 THB 181,500 493.241,99 0,60 0,60

THAI OIL PUBLIC CO LTD -FRGN- 29.800,00 THB 67,500 49.876,15 0,06 0,06

Turkey

AKBANK T.A.S. - 26.015,00 TRY 8,800 97.293,67 0,12 0,12

ALARKO HOLDING - 20.287,00 TRY 5,120 44.143,41 0,05 0,05

ARCELIK AS - 8.070,00 TRY 11,700 40.127,07 0,05 0,05

BIZIM TOPTAN SATIS MAGAALARI - 2.056,00 TRY 27,800 24.291,03 0,03 0,03

EMLAK KONUT GAYRIMENKUL YATIRI - 91.421,00 TRY 3,120 121.221,22 0,15 0,15

ENKA INSAAT VE SANAYI AS - 9.078,00 TRY 5,300 20.447,68 0,03 0,03

EREGLI DEMIR VE CELIK FABRIK - 32.065,00 TRY 2,450 33.386,85 0,04 0,04

KOC HOLDING A.S. - 22.322,00 TRY 9,260 87.846,03 0,11 0,11

TAV HAVALIMANLARI HOLD - 5.185,00 TRY 9,120 20.096,56 0,03 0,02

TOFAS TURK OTOMOBIL FABRIKASI AS - 33.973,00 TRY 10,450 150.878,81 0,18 0,18

TUPRAS-TURKIYE PETROL RAF. A.S. - 4.078,00 TRY 51,500 89.254,99 0,11 0,11

TURK HAVA YOLLARI AO - 15.644,00 TRY 6,260 41.619,82 0,05 0,05

TURK SISE VE CAM FABRIKALARI AS - 44.813,00 TRY 2,950 56.182,89 0,07 0,07

TURK TELEKOMUNIKASYON AS - 15.916,00 TRY 6,920 46.807,79 0,06 0,06

TURKIYE GARANTI BANKASI A.S. - 83.122,00 TRY 9,260 327.118,45 0,40 0,40

TURKIYE HALK BANKASI - 21.748,00 TRY 17,500 161.746,71 0,20 0,20

TURKIYE IS BANKASI - 27.477,00 TRY 6,180 72.166,54 0,09 0,09

TURKIYE SINAI KALKINMA BANKASI AS - 43.002,00 TRY 2,290 41.850,65 0,05 0,05

YAPI VE KREDI BANKASI A.S. - 62.299,00 TRY 5,200 137.677,35 0,17 0,17

Zaire

GROWTHPOINT PROPERTIES LTD - 114.109,00 ZAR 24,500 249.930,31 0,31 0,30

Total shares 76.235.695,33 92,97 92,44

Options and futures

Exchange-listed futures

Hong Kong

HANG SENG CHINA ENTERPR INDEX JAN 13 5,00 HKD 11.451,000 280.148,16 0,34 0,34

Suspense accounts (futures)

Hong Kong

HANG SENG CHINA ENTERPR INDEX JAN 13 -2.830.500,00 HKD 1,000 -276.992,18 -0,34 -0,34

Total options and futures 3.155,98 0,00 0,00

Warrants

Malaysia

IJM LAND BHD 11/09/13 CW13 13.100,00 MYR 0,745 2.420,69 0,00 0,00

Total Warrants 2.420,69 0,00 0,00

Rights

Brazil

MMX MINERACAO E METALICOS SA CP 05/12/12 7.824,00 BRL 0,400 1.159,33 0,00 0,00

Total rights 1.159,33 0,00 0,00

Forward contracts EUR -3.051,44 0,00

TOTAL SECURITIES PORTFOLIO 81.997.255,28 100,00 99,43

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 3.377.390,76 EUR 1,000 3.377.390,76 4,10

TOTAL RECEIVED COLLATERAL 3.377.390,76 4,10

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CZK 88.296,88 CZK 1,000 3.518,36 0,00

KBC GROUP EURO 207.098,05 EUR 1,000 207.098,05 0,25

KBC GROUP GBP 331,10 GBP 1,000 408,21

KBC GROUP HKD 28.051,86 HKD 1,000 2.745,15 0,00

KBC GROUP HUF 74.466,09 HUF 1,000 255,70

KBC GROUP MXN 110.494,17 MXN 1,000 6.453,80 0,01

KBC GROUP NEW BULGAARSE LEVA 5.287,11 BGN 1,000 2.703,44 0,00

KBC GROUP PLN 7.162,30 PLN 1,000 1.755,34 0,00

KBC GROUP RON 28.827,90 RON 1,000 6.484,74 0,01

KBC GROUP SEK 30,31 SEK 1,000 3,53

KBC GROUP SGD 0,05 SGD 1,000 0,03

KBC GROUP THB 1.237,91 THB 1,000 30,69

KBC GROUP TRY 3.497,42 TRY 1,000 1.486,37 0,00

KBC GROUP USD -248.014,15 USD 1,000 -188.117,53 -0,23

KBC GROUP ZAR -5.391,66 ZAR 1,000 -482,01 0,00

Total demand accounts 44.343,87 0,05

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 28.476,66 EUR 1,000 28.476,66 0,04

KBC GROUP FUT. REK. HKD 572.146,39 HKD 1,000 55.990,13 0,07

Total managed futures accounts 84.466,79 0,10

TOTAL CASH AT BANK AND IN HAND 128.810,66 0,16

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP BRL RECEIVABLE 344.727,90 BRL 1,000 127.700,65 0,16

KBC GROUP EUR RECEIVABLE 34.719,37 EUR 1,000 34.719,37 0,04

KBC GROUP IDR RECEIVABLE 228.916.425,15 IDR 1,000 18.016,26 0,02

KBC GROUP MXN RECEIVABLE 70.325,15 MXN 1,000 4.107,59 0,01

KBC GROUP MYR RECEIVABLE 260.916,44 MYR 1,000 64.716,23 0,08

KBC GROUP THB RECEIVABLE 5.716.939,95 THB 1,000 141.754,38 0,17

KBC GROUP TWD TE ONTVANGEN 3.623.960,00 TWD 1,000 94.657,44 0,12

Netherlands

KBC CLEARING NV DEKKING HKD 164.000,00 HKD 1,000 16.049,01 0,02

Total receivables 501.720,93 0,61

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -3.377.390,76 EUR 1,000 -3.377.390,76 -4,10

KBC GROUP EUR PAYABLE -71.610,14 EUR 1,000 -71.610,14 -0,09

KBC GROUP TWD TE BETALEN -4.934.497,40 TWD 1,000 -128.888,53 -0,16

Payables -3.577.889,43 -4,34

TOTAL RECEIVABLES AND PAYABLES -3.076.168,50 -3,73

OTHER

Interest receivable EUR 101.398,53 0,12

Accrued interest EUR 920,75 0,00

Expenses payable EUR -60.135,02 -0,07

TOTAL OTHER 42.184,26 0,05

TOTAL NET ASSETS 82.469.472,46 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Argentinia 0,08 0,11 0,07 0,06 Austria 0,00 0,00 0,00 0,07 Belgium 0,00 0,02 0,02 0,02 Bermuda 0,00 0,15 0,00 0,00 Brazil 15,54 15,13 13,36 12,71 Chile 1,63 1,68 1,79 1,73 China 9,65 10,52 10,65 10,94 Colombia 0,82 0,98 1,09 1,04 Czech Republic 0,40 0,49 0,26 0,05 Cayman Islands 1,32 1,06 1,01 1,24 Egypt 0,38 0,38 0,34 0,34 Hong Kong 6,29 5,51 5,82 5,72 Hungary 0,50 0,10 0,25 0,38 India 0,00 6,12 6,90 6,93 Indonesia 2,66 2,04 4,49 3,63 Ireland 0,00 0,55 0,46 0,36 South Korea 14,75 16,40 14,65 15,15 Mexico 4,57 4,69 5,10 5,32 Malaysia 3,24 2,99 3,91 2,25 Peru 0,53 0,70 0,77 0,77 Philippines 0,46 0,63 1,10 1,05 Poland 1,57 1,55 1,71 1,74 Russia 6,77 5,87 5,62 5,89 Thailand 1,76 1,54 2,19 3,55 Turkey 1,32 1,52 2,08 1,97 Taiwan 11,13 11,41 8,50 9,30 U.S.A. 7,24 0,00 0,00 0,00 South Africa 7,07 7,55 7,55 7,49 Zaire 0,32 0,31 0,31 0,30 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 31,12 30,96 29,66 29,64 Consum(cycl) 8,04 8,96 8,74 8,94 Cons.goods 6,44 7,11 8,26 8,88 Pharma 0,34 0,56 0,63 1,12 Financials 33,43 24,00 24,81 25,47 Technology 8,68 13,63 13,92 13,63 Telecomm. 6,82 7,98 8,17 7,00 Utilities 3,29 4,22 3,61 2,91 Real est. 1,75 2,50 2,11 2,34 Unit trusts 0,09 0,09 0,08 0,07 Various 0,00 -0,01 0,01 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 ARS 0,08 0,11 0,07 0,06 BRL 12,66 11,37 11,73 11,97 CZK 0,40 0,49 0,26 0,05 EUR 0,33 0,21 0,12 0,34 HKD 17,30 17,74 18,05 18,25 HUF 0,51 0,11 0,25 0,38 IDR 2,72 2,21 4,93 3,93 INR 0,00 5,93 6,43 6,71 KRW 14,71 16,35 14,60 15,06 MXN 3,05 3,28 3,53 4,12 MYR 3,26 2,98 3,89 2,32 PHP 0,50 0,63 1,10 1,05 PLN 1,57 1,56 1,71 1,73 RON 0,01 0,01 0,01 0,01 THB 1,85 1,53 2,18 3,70 TRY 1,14 1,53 2,08 1,96 TWD 11,40 11,37 8,48 9,21 USD 21,07 14,75 12,74 11,40 ZAR 7,44 7,84 7,84 7,75 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND NEW MARKETS (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 34.401.655,46 34.709.325,33 69.110.980,79 Sales 32.996.401,06 27.865.427,22 60.861.828,28 Total 1 67.398.056,52 62.574.752,55 129.972.809,07 Subscriptions 22.285.836,28 23.554.632,38 45.840.468,66 Redemptions 20.694.007,29 17.046.072,70 37.740.079,99 Total 2 42.979.843,57 40.600.705,08 83.580.548,65 Monthly average of total assets

77.194.244,36 79.740.314,31 78.493.690,85

Turnover rate 31,63 % 27,56 % 59,10 %

1st half of year 2nd half of year YearPurchases 34.401.655,46 34.709.325,33 69.110.980,79 Sales 32.996.401,06 27.865.427,22 60.861.828,28 Total 1 67.398.056,52 62.574.752,55 129.972.809,07 Subscriptions 22.285.836,28 23.554.632,38 45.840.468,66 Redemptions 20.694.007,29 17.046.072,70 37.740.079,99 Total 2 42.979.843,57 40.600.705,08 83.580.548,65 Monthly average of total assets

75.327.655,94 78.456.324,87 77.250.908,21

Corrected turnover rate 32,42 % 28,01 % 60,05 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR EUR 3.377.390,76 3.377.390,76 N/A 31.12.2012

KBCCLEAR DEKKING HKD HKD 164.000,00 16.049,01 N/A 31.12.2012

HANGSCHE 13/01/2013 HKD 2.862.750,00 280.148,16 50,00 21.12.2012

KBC AK-VK HKD-EUR 130313-121214 10.11127

HKD 2.800.000,00 274.007,46 N/A 14.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 6.128,85 7.683,70 19.897,09 2.671,00 36.153,76 18.228,09 54.381,84

2011 - 12 17.687,25 2.888,61 21.269,02 7.571,00 32.571,99 13.545,70 46.117,69

2012 - 12 3.660,28 1.785,00 4.722,34 4.751,83 31.509,94 10.578,87 42.088,80

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 8.799.450,11 8.366.012,14 28.531.526,79 2.833.681,81

2011 - 12 26.342.620,39 3.320.768,67 29.249.737,97 7.811.167,37

2012 - 12 5.408.479,32 2.013.636,01 6.897.237,50 5.199.396,85

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 80.230.144,57 1.608,56 1.211,02

2011 - 12 56.839.345,73 1.329,22 999,88

2012 - 12 61.241.815,55 1.553,23 1.162,65

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 5.568,00 172,00 5.396,00 5.396,00

2012 - 12 26.174,00 17.899,00 13.671,00 13.671,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 6.989.242,63 226.686,04

2012 - 12 38.612.023,04 25.988.199,74

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 7.176.708,80 1.330,01

2012 - 12 21.227.656,91 1.552,75

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0126164640 EUR 16.18% 6.38% -0.38% 11.49% 17/04/1991 5.39%

DIV BE0152251584 EUR 16.17% 6.37% -0.38% 11.47% 17/04/1991 5.38%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228663025 EUR 16.08% 24/11/2011 21.02%

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. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 8.66 EUR net (11.54 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.679% Classic Shares Capitalization: 1.719% Institutional B Shares Capitalization: 1.742% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 46,980 28,233 60.10%

CSFBSAS 7,424 4,074 54.87%

DEUTSCHE 179 52 29.03%

EQ CSA MACQUARIE 1,208 690 57.14%

HSBC 978 223 22.75%

MERRILL 6,400 3,657 57.14%

MORGAN STANLEY 3,791 2,115 55.78%

NOMURA 21,195 12,844 60.60%

UBSWDR 3,357 2,070 61.67%

WOOD 940 215 22.87%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.6% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.6% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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.

Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The Hang Seng China Enterprises Index is a capitalization-weighted index comprised of state-owned Chinese companies (H-Shares) listed on the Stock Exchange of Hong Kong. The base value of this index is 2000 as of January 3, 2000. The Stock Exchange of Hong Kong has all proprietary rights with repect to the index. In no way the Stock Exchange of Hong Kong endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. The Stock Exchange of Hong Kong disclaims any liability for the issue and offering of the shares of this undertaking for collective investment. The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service.

Name Maximum management fee Horizon-Access India Fund-Classic Shares 1,60 KBC Equity Fund-New Markets-Classic Shares 1,60 KBC Equity Fund-New Markets-Institutional B Shares 1,60

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 34.122,09 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ANGLO AMERICAN PLATINUM LTD ZAR 500 446,330 19.950,74

BANK PEKAO SA PLN 2.770 167,500 113.711,00

CHINA NATL. BUILDING MATERIAL -H- HKD 205.999 11,340 228.603,31

CHINA RAILWAY CONSTRUCTIO-H- HKD 225.499 8,810 194.412,81

COSCO PACIFIC HKD 51.368 11,040 55.496,56

DONGFANG ELECTRICAL MACHINERY -H- HKD 48.799 15,640 74.688,20

GEDEON RICHTER HUF 286 36210,000 35.560,95

GOLD FIELDS LTD ZAR 20.000 103,750 185.503,05

GREAT WALL MOTOR CO LTD -H- HKD 49.999 24,450 119.631,22

GUANGZHOU R&F PROPERTIES COMP.LTD HKD 104.406 12,900 131.801,25

KGHM POLSKA MIEDZ SA PLN 3.804 190,000 177.134,03

MAGYAR OLAJ-ES (BUD) HUF 1.650 17755,000 100.596,63

METALLURGICAL CORP OF CHINA LTD -H- HKD 114.999 1,510 16.993,21

OTP BANK RT. HUF 6.073 4150,000 86.542,65

POLISH OIL & GAS PLN 81.558 5,210 104.138,71

POLSKI KONCERN NAFTO PLN 17.667 49,500 214.326,52

POWSZECHNA KASA OSZC PLN 22.302 36,900 201.687,08

POWSZECHNY ZAKLAD UBEZPIECZEN SA PLN 3.533 437,000 378.384,19

SHIMAO PROPERTY HOLDINGS LTD HKD 60.551 14,620 86.630,94

ZIJIN MINING GROUP CO -H- HKD 455.999 3,050 136.103,12

Total 2.661.896,17

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 1.900.000 EUR 2.033.020,90

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 79.000 EUR 96.522,52

FRANCE 2003 2,25% 25/07/2020 EUR 464.000 EUR 675.144,59

FRANCE 2004 1,60% 25/07/2015 EUR 268.000 EUR 344.380,54

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 136.000 EUR 149.936,19

BTAN FRANCE 2008 4 1/2% 12/07/13 EUR 75.000 EUR 78.386,03

Total 3.377.390,77 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund New Asia

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND NEW ASIA

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 28 January 1994 Initial subscription price: 20000 BEF Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 444.36 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies in Asian countries where conditions are such as to allow on accelerated economic growth in the short or medium term.

RISK CONCENTRATION Asian shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund New Asia fund tracks the MSCI Emerging Asia. It has holdings in what are considered the emerging stock markets in Asia, namely China, Korea, Taiwan, India, Philippines, Malaysia, Thailand and Indonesia. The NAV of KBC Equity Fund New Asia rose from 468.68 EUR on 29th December 2011 to 554.86 EUR on 28th December 2012. Emerging Asia saw a positive performance over 2012, with the region outperforming in a global context. The first half saw the region move in line with its global peers as performance was largely driven by international factors. In the first quarter, the spotlight was largely on the situation in Europe. Towards the beginning of the year, there was positive news from Greece as the country secured acceptance of their debt swap offer. The ECB continued to extend liquidity to European banks through the LTRO.

Moving into the second quarter, the situation in Europe worsened. In May, French socialist, Francois Hollande won the French presidential election. Following parliamentary elections in Greece, it was not possible to form a government and a second election was called for mid-May with the uncertainty continuing in the meantime. Despite initially stating that the country did not need a bailout, by the end of June, Spain had requested assistance from Europe and the IMF. In mid May, the second Greek election took place, with the New Democracy winning narrowly and forming a government. Throughout this period of uncertainty, markets were quite weak, with most regions reversing the gains achieved in Q1. On the final day of the quarter, EU leaders agreed that Europe would support troubled banks directly, without the need for local governments to add to their debt levels. This saw a significant rally on the final day of the first half. While global issues dominated over the first half, the local news in China did not help to boost sentiment. Investors worried about the outlook for growth in China which came in behind expectations, with the official growth target being lowered to 7.5%. Most domestic activity metrics were weak – industrial production, investment and retail sales. On the positive side, inflation continued to fall, leaving room for policy makers to make changes if needed. Following this slowdown, Chinese authorities began to take steps to boost growth. Initially the focus was on increasing investment, with particular focus on water and other environmental areas, utilities, railways and social housing. However at the beginning of June, the People’s Bank of China took the decision to lower lending and deposit rates by 25bps. They also took steps to liberalise the interest rate regime, seen as a significant positive. The third quarter had a weak start, with the IMF forecast for 2012 growth in the US being reduced from 2.25% to 2% in the first week of the quarter. The disappointment continued with Bernanke’s report to Congress. Negative headlines continued about the US fiscal cliff as well as the ongoing problems in Euroland. However towards the end of July, markets started to recover and to move upwards. August was a reasonable month for markets, with expectations rising ahead of Bernanke’s speech in Jackson Hole and investors looking to quantitative easing in Europe. In Asia, investors were concerned by an ongoing slowdown in the PMI and slowing profit levels in China. However policy makers in China continued to loosen policy, the positive impact of which would be seen by year-end. Trade also remained weak across Asia, heavily influenced by the global demand issues. Problems continued in Europe, with ongoing concerns and protests against austerity in Greece. September saw a rally in risky assets on the announcement of global policy stimulus. The major event of September occurred on September 13th when the US Fed announced QE3, along with the aim of keeping interest rates low until at least the middle of 2015. The final quarter of 2012 saw a good performance for the Asian region, with the focus returning to domestic issues and in particular the positive news flow from China. China has a strong impact across the region given its 30% weighting in the index and its importance to the other countries in the region. Following the stimulus in China earlier in the year, macroeconomic indicators began to improve in Q4. Over the quarter, we saw the completion of a successful leadership transition in the country and while it will be 2013 before the leadership takes action on most items, the transition was completed smoothly which was a positive for the market. While the Chinese news was a significant driver of the region over the period, international factors continued to influence sentiment. Despite concerns on the fiscal cliff ahead at the start of January, markets continued to expect that some sort of resolution would be found on this issue and December saw a strong rise in equity prices. Other positives over the period were the agreement of a bailout for Spanish banks and improved sentiment in Japan following the strong election result. Within Asia, the strongest performing markets in 2012 were the Philippines and Thailand, which comprise approximately 2% and 6% of the fund respectively. However China and India also outperformed the region and are much larger weights of the fund at approximately 30% and 11% respectively. As noted above, the outperformance of China was due to the positive economic numbers released towards year-end, with most of this positive performance coming in the final quarter. The countries that lagged were Malaysia and Indonesia, which represent approximately 4% and 6% of the portfolio respectively. The top performing sectors were Utilities and Healthcare, with Materials and Consumer Discretionary lagging.

2.1.8 FUTURE POLICY We continue to have a positive outlook for Emerging Asia. One of the main concerns in the Asian region in 2012 was that China was going to experience a hard landing, however recently reported indicators show that the likelihood of this has diminished. We expect a further improvement in fundamentals will continue to drive the market going forward. Overall, a reasonable level of good quality growth continues to be seen in Emerging Asia. Relative to developed markets, the region is not experiencing the same deleveraging that is being experienced elsewhere, particularly in Europe. While growth has clearly slowed in recent years, we do not expect a major deterioration from current levels going forward. Inflation is always a topic that should be looked at in Asia, given the importance of price stability to the population. Looking into 2013, there are increasing pressures on price levels; however these are starting from a low base and are not significant at this stage. Policy makers still have the possibility to loosen monetary policy if need to deal with any issues.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 235.229.370,36 174.810.886,40

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 790.163,20 935.406,00 a} Collateral received in the form of bonds 10.027.375,54 22.392.941,48 C. Shares and similar instruments a) Shares 213.819.458,17 159.653.465,50 Of which securities lent 9.319.143,52 23.648.614,14 D. Other securities 23,84 44.873,20 E. Open-end undertakings for collective investment 19.272.165,88 13.338.985,70 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -8.500,43 6.024,74 m) Financial indices Futures and forward contracts (+/-) 8.836,74 -15.193,85

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 106.275,07 108.369,17 c) Collateral 44.937,22 112.410,98 B. Payables a) Accounts payable (-) -181.651,75 -610.904,30 c) Borrowings (-) -313.691,86 -88.827,60 d) Collateral (-) -10.027.375,54 -22.392.941,48

V. Deposits and cash at bank and in hand A. Demand balances at banks 1.837.254,27 1.406.970,81

VI. Accruals and deferrals A. Expense to be carried forward 12.815,24 B. Accrued income 184.834,91 117.537,05 C. Accrued expense (-) -330.734,90 -211.046,24

TOTAL SHAREHOLDERS' EQUITY 235.229.370,36 174.810.886,40

A. Capital 138.185.315,48 112.269.227,25

B. Income equalization -844.114,21 -568.654,02

C. Profit(Loss) carried forward 62.451.793,34 117.358.245,66

D. Result for the period 35.436.375,75 -54.247.932,49

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 10.027.375,54 22.392.941,48

I.A.B Cash at bank and in hand/deposits 44.937,22 112.410,98

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 1.547.721,34 1.881.776,80

IX Financial instruments lent 9.319.143,52 23.648.614,14

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -145.242,80 1.059,20 C. Shares and similar instruments a) Shares 26.869.723,24 -44.750.890,50 D. Other securities 8.648,66 -23.631,16 E. Open-end undertakings for collective investment 2.265.393,56 -5.084.062,19 F. Derivative financial instruments l) Financial indices Futures and forward contracts 129.419,79 -15.193,85 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -14.525,17 6.024,74 b) Other foreign exchange positions and

transactions 4.139.318,16 -4.281.475,30

II. Investment income and expenses A. Dividends 6.296.545,69 5.140.442,75 B. Interests a) Securities and money market instruments 659.376,15 289.817,23 b) Cash at bank and in hand and deposits 10.023,09 20.863,07 C. Interest on borrowings (-) -10.852,35 -9.984,99

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

950.486,68 42.571,27

B. Other 19.959,72

IV. Operating expenses A. Investment transaction and delivery costs (-) -1.347.896,44 -1.336.029,31 B. Financial expenses (-) -3.083,70 -13.394,13 C. Custodian's fee (-) -141.157,07 -255.077,18 D. Manager's fee (-) a) Financial management Classic Shares -2.006.534,40 -3.407.151,66 Institutional B Shares -1.665.020,89 -80.927,56 b) Administration and accounting management -261.876,58 -220.965,41 E. Administrative expenses (-) -499,40 20,38 F. Formation and organisation expenses (-) -19.835,99 -23.868,97 G. Remuneration, social security charges and

pension -23,20 -52,75

H. Services and sundry goods (-) -43.437,33 -49.036,93 J. Taxes Classic Shares -104.776,59 -133.917,35 Institutional B Shares -10.918,54 30.946,84 K. Other expenses (-) -116.878,82 -113.978,45

Income and expenditure for the period Subtotal II + III + IV 2.183.640,31 -99.763,43

V. Profit (loss) on ordinary activities before tax 35.436.375,75 -54.247.932,49

VII. Result for the period 35.436.375,75 -54.247.932,49

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 97.044.054,88 62.541.659,15 Profit (loss) brought forward from the previous

financial year 62.451.793,34 117.358.245,66

Profit for the period available for appropriation 35.436.375,75 -54.247.932,49 Income on the creation of shares (income on the

cancellation of shares) -844.114,21 -568.654,02

II. (Appropriations to) Deductions from capital -96.794.248,68

III. Profit (loss) to be carried forward 62.451.793,34

IV. (Dividends to be paid out) -249.806,20 -89.865,81

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND NEW ASIA

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Open-end funds

UCITS registered with the FSMA

Belgium

HORIZON ACCESS INDIA FD KAP 24.088,84 USD 1.054,780 19.272.165,88 16,53 8,25 8,20

Total investment funds 19.272.165,88 8,24 8,19

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 1.324.000,00 EUR 59,680 790.163,20 0,34 0,34

Total bonds 790.163,20 0,34 0,34

Shares

Exchange-listed shares

Cayman Islands

CHAODA MODERN AGRICULTURE HLDS - 3.202.078,00 HKD 1,100 344.690,21 0,15 0,15

CHINA INFRASTRUCTURE MACHINERY HLD - 1.523.000,00 HKD 2,040 304.042,59 0,13 0,13

HENGAN INT GROUP COMPANY LTD - 163.000,00 HKD 69,950 1.115.782,83 0,48 0,47

SHIMAO PROPERTY HOLDINGS LTD - 340.000,00 HKD 14,620 486.441,52 0,21 0,21

TENCENT HOLDINGS - 93.600,00 HKD 249,000 2.280.759,78 0,98 0,97

XINAO GAS HOLDINGS LTD - 168.000,00 HKD 33,750 554.865,10 0,24 0,24

China

AGILE PROPERTY HOLDINGS LTD - 374.000,00 HKD 10,900 398.935,29 0,17 0,17

ANGANG NEW STEEL CO LTD - 1.840,00 HKD 5,680 1.022,75

BANK OF CHINA LTD - H - 11.152.300,00 HKD 3,460 3.776.112,23 1,62 1,61

CHINA BLUECHEMICAL LTD - 1.032.000,00 HKD 5,200 525.154,86 0,23 0,22

CHINA CITIC BANK CHINA CITIC BANK 2.569.000,00 HKD 4,600 1.156.448,47 0,49 0,49

CHINA COAL ENERGY CO - 967.000,00 HKD 8,420 796.788,24 0,34 0,34

CHINA COMMUNICATIONS CONST-H - 2.229.000,00 HKD 7,480 1.631.608,72 0,70 0,69

CHINA CONSTRUCTION BANK - 7.236.490,00 HKD 6,220 4.404.764,58 1,88 1,87

CHINA GAS HOLDINGS LTD - 760.000,00 HKD 6,100 453.678,06 0,19 0,19

CHINA LIFE INSURANCE CO - 371.000,00 HKD 25,300 918.541,50 0,39 0,39

CHINA MERCHANTS BANK CO LTD - 415.500,00 HKD 17,100 695.298,81 0,30 0,30

CHINA RAILWAY CONSTRUCTION CORP - 1.241.500,00 HKD 8,810 1.070.352,88 0,46 0,46

CHINA RAILWAY GROUP LTD - 1.998.000,00 HKD 4,530 885.723,23 0,38 0,38

CHINA SHENHUA ENERGY COMPANY LTD - 285.500,00 HKD 33,950 948.528,19 0,41 0,40

CHINA SOUTH LOCOMOTIVE AND ROL - 1.217.000,00 HKD 6,760 805.084,80 0,34 0,34

CHINA ZHONGWANG HOLDINGS LTD - 118.000,00 HKD 2,890 33.372,15 0,01 0,01

DAPHNE INTERNATIONAL HOLDINGS - 540.000,00 HKD 10,620 561.206,42 0,24 0,24

DATANG INTER POWER GENERATION CO LTD - 2.154.000,00 HKD 2,960 623.938,47 0,27 0,27

DONGFANG ELECTRIC CORP LTD - 310.800,00 HKD 15,640 475.687,91 0,20 0,20

DONGFENG MOTOR CORP - 1.304.000,00 HKD 11,960 1.526.205,88 0,65 0,65

DONGYUE GROUP - 578.000,00 HKD 5,130 290.168,03 0,12 0,12

EVERGRANDE REAL ESTATE GROUP - 1.076.000,00 HKD 4,250 447.512,89 0,19 0,19

FUJIAN ZIJIN MINING IND - 2.106.000,00 HKD 3,050 628.582,89 0,27 0,27

FUSHAN INTERNATIONAL ENERGY GROUP - 3.020.000,00 HKD 2,850 842.279,35 0,36 0,36

GOLDEN EAGLE RETAIL GROUP LTD - 601.000,00 HKD 19,080 1.122.166,22 0,48 0,48

GREAT WALL MOTOR CO LTD - 278.000,00 HKD 24,450 665.162,89 0,28 0,28

GUANGZHOU R&F PROPERTIES - 1.112.800,00 HKD 12,900 1.404.789,26 0,60 0,60

HUANENG POWER INTL "H" 2.060.000,00 HKD 7,170 1.445.408,91 0,62 0,61

IND & COMM BK OF CHINA - 9.699.545,00 HKD 5,500 5.220.575,76 2,23 2,22

JIANGSU EXPRESSWAY COMP LTD - 398.000,00 HKD 7,990 311.196,14 0,13 0,13

JIANGXI COPPER COMPANY LTD. -H- 208.000,00 HKD 20,400 415.238,73 0,18 0,18

LONGFOR PROPERTIES CO LTD - 138.000,00 HKD 15,180 205.000,64 0,09 0,09

MMG LTD - 632.000,00 HKD 3,210 198.530,15 0,09 0,08

PETROCHINA COMPANY LIMITID - 2.710.000,00 HKD 10,980 2.911.896,82 1,25 1,24

PICC PROPERTY & CASUALTY -H- 1.119.799,00 HKD 10,860 1.190.074,78 0,51 0,51

PING AN INSURANCE GROUP CO - 58.500,00 HKD 64,900 371.539,43 0,16 0,16

SHANDONG WEIGAO GP MEDICAL-H - 284.000,00 HKD 7,710 214.277,75 0,09 0,09

SHANGAI ELECTRIC GROUP CO LTD - 1.812.000,00 HKD 3,310 586.935,72 0,25 0,25

SIHUAN PHARMACEUTICAL HOLDINGS - 1.024.000,00 HKD 3,400 340.708,70 0,15 0,15

SINOPEC-CHINA PETROL & CHEM CORP. "A" 3.584.000,00 HKD 8,780 3.079.405,40 1,32 1,31

WANT WANT CHINA HOLDINGS LTD - 311.000,00 HKD 10,680 325.039,39 0,14 0,14

WUMART STORES INC - 253.000,00 HKD 16,680 412.972,30 0,18 0,18

YINGDE GASES - 28.000,00 HKD 7,880 21.591,79 0,01 0,01

ZHAOJIN MINING INDUSTRY CO LTD - 198.500,00 HKD 12,100 235.044,58 0,10 0,10

ZHEJIANG EXPRESSWAY CO. - 846.000,00 HKD 6,100 505.015,32 0,22 0,22

ZHONGSHENG GROUP HOLDINGS LTD - 174.000,00 HKD 11,720 199.563,55 0,09 0,09

Hong Kong

BEIJING CAPITAL INTL.AIRPORT-H - 448.000,00 HKD 5,550 243.318,62 0,10 0,10

BEIJING ENTERPRISES HOLD LTD - 47.000,00 HKD 50,500 232.270,25 0,10 0,10

BELLE INTERNATIONAL HOLDINGS - 390.000,00 HKD 16,820 641.940,76 0,27 0,27

CHINA EVERBRIGHT-IHD PAC LTD - 428.000,00 HKD 14,940 625.746,91 0,27 0,27

CHINA INSURANCE INTERNATIONAL - 396.400,00 HKD 15,700 609.028,55 0,26 0,26

CHINA MERCHANTS HLDGS INTL - 258.000,00 HKD 24,850 627.408,57 0,27 0,27

CHINA MOBILE LTD. - 632.000,00 HKD 90,250 5.581.727,62 2,39 2,37

CHINA NATIONAL BUILDING MATERI - 1.212.000,00 HKD 11,340 1.344.993,00 0,58 0,57

CHINA OVERSEAS LAND & INVEST LTD - 1.022.320,00 HKD 23,100 2.311.017,25 0,99 0,98

CHINA RESOURCES POWER HOLDINGS CO - 799,00 HKD 19,780 1.546,60 0,00 0,00

CHINA UNICOM HONG KONG LTD - 683.844,00 HKD 12,420 831.156,85 0,36 0,35

CNOOC LTD - 3.487.000,00 HKD 16,780 5.725.959,27 2,45 2,43

COSCO PACIFIC - 282.000,00 HKD 11,040 304.664,98 0,13 0,13

DAH CHONG HONG - 264.000,00 HKD 8,150 210.555,16 0,09 0,09

ESPRIT HOLDINGS LTD. - 9,00 HKD 10,740 9,46

GUANGDONG INVESTMENT - 954.000,00 HKD 6,090 568.551,77 0,24 0,24

HUABAO INTERNATIONAL HOLDINGS - 1.563.000,00 HKD 3,840 587.346,73 0,25 0,25

KINGBOARD CHEMICALS HOLDIGNS - 190.500,00 HKD 27,500 512.663,06 0,22 0,22

METALLURGICAL CORP OF CHINA LT - 620.000,00 HKD 1,510 91.616,35 0,04 0,04

YUEXIU PROPERTY COMPANY LTD - 1.646.000,00 HKD 2,450 394.639,24 0,17 0,17

ZHUZHOU CSR TIMES ELECTRIC CO - 213.000,00 HKD 28,700 598.226,78 0,26 0,25

India

BHARAT HEAVY ELECTRICALS LTD - 93.835,00 INR 228,250 296.501,41 0,13 0,13

BHARTI AIRTEL LTD - 54.668,00 INR 317,100 239.983,04 0,10 0,10

BNI TBK PT - 1.887.000,00 IDR 3.700,000 549.491,98 0,24 0,23

GAIL INDIA LTD - 88.358,00 INR 356,750 436.376,12 0,19 0,19

HINDUSTAN LEVER LTD. - 94.050,00 INR 524,850 683.353,03 0,29 0,29

HOUSING DEV. FIN. CORP. LTD. - 55.775,00 INR 828,850 639.980,35 0,27 0,27

ICICI BANK LTD. P.N.01/07/05 22.645,00 INR 1.138,250 356.829,79 0,15 0,15

INFOSYS LTD - 4.224,00 INR 2.318,700 135.587,48 0,06 0,06

OIL & NATURAL GAS CORP LTD - 130.488,00 INR 268,000 484.123,86 0,21 0,21

RELIANCE INDUSTRIES LTD SP GDR "144A" 23.345,00 USD 30,520 540.419,75 0,23 0,23

STERLITE INDUSTRIES INDIA LTD - 293.812,00 INR 116,700 474.669,70 0,20 0,20

SUN PHARMACEUTICAL INDS LTD - 85.817,00 INR 736,250 874.681,13 0,37 0,37

TAMBANG BATUBARA BUKIT ASAM TB - 480.500,00 IDR 15.100,000 571.028,88 0,24 0,24

TATA CONSULTANCY SVS LTD - 57.798,00 INR 1.255,850 1.004.851,07 0,43 0,43

Indonesia

CHAROEN POKHAND INDONESIA TBK - 1.346.895,00 IDR 3.650,000 386.913,90 0,17 0,16

INDO FOOD - 1.336.000,00 IDR 5.850,000 615.106,13 0,26 0,26

INDO TAMBANGRAYA MEGAH PT - 225.500,00 IDR 41.550,000 737.403,69 0,32 0,31

INDOCEMENT TUNGGAL PRAKARSA TB - 654.500,00 IDR 22.450,000 1.156.415,03 0,49 0,49

JASA MARGA PERSERO TBK PT - 439.000,00 IDR 5.450,000 188.299,32 0,08 0,08

PERUSAHAAN GAS NEGARA PT - 1.279.500,00 IDR 4.600,000 463.218,45 0,20 0,20

PT ASTRA INTL REG 641.560,00 IDR 7.600,000 383.741,35 0,16 0,16

PT BANK CENTRAL ASIA TBK - 3.088.500,00 IDR 9.100,000 2.211.957,25 0,95 0,94

PT BANK MANDIRI - 2.258.000,00 IDR 8.100,000 1.439.450,34 0,62 0,61

PT BANK RAKYAT INDONESIA - 3.571.000,00 IDR 6.950,000 1.953.270,48 0,84 0,83

PT KALBE FARMA FOREIGN 5.032.500,00 IDR 1.060,000 419.833,78 0,18 0,18

PT TELEKOMUNIKAS 'B' SCRIPLESS 1.258.000,00 IDR 9.050,000 896.018,45 0,38 0,38

PT UNITED TRACTORS - 259.515,00 IDR 19.700,000 402.361,50 0,17 0,17

SEMEN GRESIK FOREIGN 1.349.500,00 IDR 15.850,000 1.683.409,94 0,72 0,72

UNILEVER INDONESIA TBK PT - 117.500,00 IDR 20.850,000 192.810,93 0,08 0,08

Malaysia

AIRASIA BHD - 888.300,00 MYR 2,740 603.701,17 0,26 0,26

ALLIANCE FINANCIAL GROUP BHD - 492.400,00 MYR 4,400 537.381,25 0,23 0,23

AMBANK HOLDINGS BERHAD - 163.200,00 MYR 6,800 275.258,58 0,12 0,12

BERJAYA SPORTS TOTO BHD - 254.200,00 MYR 4,450 280.573,95 0,12 0,12

BRITISH AMERICAN TOBACCO (MALAYSIA) - 34.800,00 MYR 62,000 535.158,87 0,23 0,23

DIGI.COM BHD - 1.493.800,00 MYR 5,290 1.960.017,36 0,84 0,83

GENTING MALAYSIA BHD - 222.300,00 MYR 3,550 195.740,01 0,08 0,08

HONG LEONG FINANCIAL GROUP BHD - 75.900,00 MYR 13,200 248.500,63 0,11 0,11

KUALA LUMPUR KEPONG BERHAD - 202.100,00 MYR 24,000 1.203.065,70 0,51 0,51

PARKSON HOLDINGS BHD - 234.500,00 MYR 5,200 302.453,06 0,13 0,13

PETRONAS CHEMICALS GROUP BHD - 217.300,00 MYR 6,400 344.946,30 0,15 0,15

PETRONAS GAS BHD - 212.600,00 MYR 19,520 1.029.330,56 0,44 0,44

PUBLIC BANK BERHAD - 82,00 MYR 16,280 331,12

SIME DARBY BERHAD - 46.476,00 MYR 9,520 109.743,17 0,05 0,05

UNITED MOTOR WORKS HLDG - 215.900,00 MYR 11,940 639.394,30 0,27 0,27

Philippines

ABOITIZ EQUITY VENTURES INC - 413.700,00 PHP 52,950 404.630,77 0,17 0,17

ABOITIZ POWER CORP - 293.200,00 PHP 36,950 200.117,85 0,09 0,09

ALLIANCE GLOBAL GROUP INC - 1.199.800,00 PHP 16,760 371.441,39 0,16 0,16

AYALA CORP - 48.270,00 PHP 517,000 460.972,76 0,20 0,20

AYALA LAND - 542.000,00 PHP 26,450 264.808,78 0,11 0,11

BANCO DE ORO UNIBANK INC - 292.812,00 PHP 72,800 393.756,44 0,17 0,17

BANK OF THE PHILIPPINE ISLAND - 269.299,00 PHP 95,000 472.569,58 0,20 0,20

DMCI HOLDINGS INC - 377.360,00 PHP 53,950 376.057,91 0,16 0,16

INTERNATIONAL CONTAINER TERMIN - 113.100,00 PHP 74,000 154.597,24 0,07 0,07

METROP. BANK & TRUST - 212.700,00 PHP 102,000 400.751,43 0,17 0,17

PHILIPPINE LONG DISTANCE TELEPHONE - 7,00 PHP 2.530,000 327,13

SM PRIME HOLDINGS - 854.500,00 PHP 16,500 260.437,45 0,11 0,11

UNIVERSAL ROBINA CORP - 326.400,00 PHP 83,850 505.545,95 0,22 0,22

South Korea

CELLTRION INC - 14.809,00 KRW 26.100,000 273.842,43 0,12 0,12

CJ CORP - 5.510,00 KRW 118.500,000 462.598,75 0,20 0,20

DAELIM INDUSTRIAL CO - 3.071,00 KRW 87.000,000 189.292,57 0,08 0,08

DC CHEMICAL CO LTD - 8.595,00 KRW 165.500,000 1.007.809,34 0,43 0,43

DGB FINANCIAL GROUP INC - 28.700,00 KRW 14.550,000 295.855,33 0,13 0,13

DONGBU INSURANCE CO LTD - 13.266,00 KRW 45.950,000 431.876,94 0,19 0,18

DOOSAN HEAVY INDS & CONSTRUCTION CO - 23.430,00 KRW 45.200,000 750.317,76 0,32 0,32

E-MART CO LTD - 1.710,00 KRW 238.000,000 288.341,78 0,12 0,12

GLOVISCO CO LTD - 8.047,00 KRW 221.500,000 1.262.822,27 0,54 0,54

HANKOOK TIRE WORLDWIDE CO LTD - 8.601,00 KRW 19.800,000 120.655,92 0,05 0,05

HANKOOK TIRE WORLDWIDE CO LTD - 19.688,00 KRW 47.000,000 655.592,48 0,28 0,28

HANWHA LIFE INSURANCE CO LTD - 76.540,00 KRW 7.760,000 420.808,67 0,18 0,18

HYUNDAI DEPARTMENT STORE CO LTD - 4.794,00 KRW 159.000,000 540.044,63 0,23 0,23

HYUNDAI HYSCO - 5.300,00 KRW 45.450,000 170.664,92 0,07 0,07

HYUNDAI MARINE & FIRE INSURANCE CO - 13.570,00 KRW 33.300,000 320.153,74 0,14 0,14

HYUNDAI MOBIS - 3.131,00 KRW 288.000,000 638.866,41 0,27 0,27

HYUNDAI MOTOR - 27.377,00 KRW 218.500,000 4.238.105,85 1,81 1,80

HYUNDAI SECURITIES - 42.050,00 KRW 9.010,000 268.426,44 0,12 0,11

HYUNDAI WIA CORP - 4.450,00 KRW 173.000,000 545.432,00 0,23 0,23

KB FINANCIAL GROUP INC - 105.110,00 KRW 37.900,000 2.822.394,70 1,21 1,20

KIA MOTORS CORP. - 11.880,00 KRW 56.500,000 475.553,51 0,20 0,20

KOREA AIR - 20.137,00 KRW 45.300,000 646.290,06 0,28 0,28

KOREA GAS CORP - 19.893,00 KRW 75.100,000 1.058.460,66 0,45 0,45

KOREA INVESTMENT HOLDINGS CO LTD - 13.370,00 KRW 42.550,000 403.056,08 0,17 0,17

KOREA ZINC CO LTD - 3.685,00 KRW 405.000,000 1.057.370,08 0,45 0,45

KP CHEMICAL CORP - 47.930,00 KRW 12.100,000 410.891,64 0,18 0,18

KT CORPORATION - 56.513,00 KRW 35.500,000 1.421.383,33 0,61 0,60

KT&G CORPORATION - 16.539,00 KRW 80.800,000 946.793,16 0,41 0,40

LG CHEM LTD - 2.254,00 KRW 330.000,000 526.989,97 0,23 0,22

LOTTE SHOPPING CO LTD - 4.440,00 KRW 377.000,000 1.185.929,36 0,51 0,50

LS CABLE LTD - 10.417,00 KRW 94.300,000 695.967,34 0,30 0,30

LS INDUSTRIAL SYSTEMS - 9.451,00 KRW 67.100,000 449.298,31 0,19 0,19

MIRAE ASSET SECURITIES CO LTD - 7.280,00 KRW 35.600,000 183.618,26 0,08 0,08

NHN CORP - 10.667,00 KRW 227.000,000 1.715.547,13 0,73 0,73

POSCO - 9.342,00 KRW 349.000,000 2.309.935,17 0,99 0,98

S-OIL CORP - 12.050,00 KRW 104.000,000 887.881,26 0,38 0,38

SAMSUNG CARD CO - 13.480,00 KRW 36.500,000 348.591,87 0,15 0,15

SAMSUNG ELECTRO MECHANICS CO. - 7.234,00 KRW 99.200,000 508.422,40 0,22 0,22

SAMSUNG ELECTRONICS - 15.703,00 KRW 1.522.000,000 16.932.917,21 7,24 7,20

SAMSUNG ELECTRONICS PREF 1.149,00 KRW 852.000,000 693.576,11 0,30 0,30

SAMSUNG ENGINEERING CO LTD - 12.371,00 KRW 165.500,000 1.450.565,38 0,62 0,62

SAMSUNG FIRE & MARINE INSURANCE CO - 6.047,00 KRW 218.000,000 933.965,78 0,40 0,40

SAMSUNG LIFE INSURANCE CO LTD - 4.809,00 KRW 94.300,000 321.292,78 0,14 0,14

SHINHAN FINANCIAL GROUP CO LTD. - 65.969,00 KRW 38.850,000 1.815.789,19 0,78 0,77

SK CORP LTD - 11.294,00 KRW 179.000,000 1.432.304,37 0,61 0,61

SK ENERGY CO LTD - 8.016,00 KRW 174.000,000 988.192,28 0,42 0,42

SK HYNIX INC - 12.090,00 KRW 25.750,000 220.565,73 0,09 0,09

SK TELECOM CO LTD - 11.954,00 KRW 152.500,000 1.291.568,95 0,55 0,55

WOORI - 215.080,00 KRW 11.800,000 1.798.111,16 0,77 0,76

YUHAN CORPORATION - 3.067,00 KRW 173.000,000 375.919,09 0,16 0,16

Taiwan

ACER INC. - 522,00 TWD 25,200 343,59

ADVANCED SEMICONDUCTOR - 467.810,00 TWD 25,200 307.922,48 0,13 0,13

ADVANTECH CO LTD - 147.000,00 TWD 122,500 470.353,92 0,20 0,20

ASUSTEK COMPUTER INC - 199.958,00 TWD 326,500 1.705.270,65 0,73 0,73

CHENG UEI PRECISION INDUSTRY - 184.536,00 TWD 62,500 301.253,75 0,13 0,13

CHICONY ELECTRONICS CO LTD - 319.140,00 TWD 67,100 559.339,01 0,24 0,24

CHINA MOTOR CORP - 535.000,00 TWD 27,250 380.795,35 0,16 0,16

CHINA PETROCHEMICAL DEVELOPMENT - 430.872,00 TWD 18,000 202.577,93 0,09 0,09

CHINA STEEL CORP - 18.563,00 TWD 27,350 13.261,02 0,01 0,01

FAR EASTONE TELECOMMUNICATIONS - 235.000,00 TWD 74,100 454.838,71 0,19 0,19

FORMOSA INTERNATIONAL HOTELS CORP - 24.200,00 TWD 389,500 246.203,47 0,11 0,11

FUBON FINANCIAL HOLDING CO - 2.774.917,00 TWD 35,100 2.544.066,52 1,09 1,08

HIGHWEALTH CONSTRUCTION CORP - 268.800,00 TWD 54,600 383.348,05 0,16 0,16

HIWIN TECHNOLOGIES CORP - 50.114,00 TWD 213,000 278.811,07 0,12 0,12

HON HAI PRECISION - 890.537,00 TWD 88,900 2.067.878,79 0,88 0,88

HOTAI MOTOR CO LTD - 41.000,00 TWD 233,000 249.523,31 0,11 0,11

INNOLUX DISPLAY CORPORATION - 273.377,00 TWD 15,600 111.393,01 0,05 0,05

LITE-ON TECHNOLOGY CORP - 976.615,00 TWD 38,550 983.374,91 0,42 0,42

MEDIATEK INCORPORATION - 53.071,00 TWD 323,500 448.438,51 0,19 0,19

PEGATRON CORP - 1.235.000,00 TWD 37,550 1.211.290,32 0,52 0,52

PHISON ELECTRONICS CORP - 142.000,00 TWD 192,500 713.987,20 0,31 0,30

POU CHEN CORP. - 298.000,00 TWD 30,500 237.403,68 0,10 0,10

PRESIDENT CHAIN STORE CORP - 182.000,00 TWD 155,500 739.219,02 0,32 0,31

PRESIDENT ENTERPRISES - 487.520,00 TWD 53,300 678.720,54 0,29 0,29

RADIANT OPTO-ELECTRONICS CORP - 156.480,00 TWD 119,500 488.425,23 0,21 0,21

REALTEK SEMICONDUCTOR CORP. - 244.510,00 TWD 61,300 391.497,01 0,17 0,17

RICHTEK TECHNOLOGY CORP - 177.000,00 TWD 169,500 783.635,89 0,34 0,33

SHIN KONG FINANCIAL HOLDING CO - 2.501.000,00 TWD 8,190 535.018,68 0,23 0,23

SILICONWARE PRECISION IND. CO. - 402.000,00 TWD 31,000 325.506,07 0,14 0,14

SIMPLO TECHNOLOGY CO LTD - 238.400,00 TWD 146,000 909.139,35 0,39 0,39

STANDARD FOODS CORP - 205.000,00 TWD 79,500 425.688,91 0,18 0,18

TAISHIN_FINANCIAL HOLD CO - 1.695.146,00 TWD 11,550 511.399,67 0,22 0,22

TAIWAN CEMENT CORP - 552.625,00 TWD 38,900 561.502,22 0,24 0,24

TAIWAN SEMICONDUCTOR - 3.783.587,00 TWD 97,000 9.586.207,10 4,10 4,08

TECO ELECTRIC AND MACHINERY CO - 596.000,00 TWD 22,250 346.375,87 0,15 0,15

TPK HOLDING CO LTD - 21.081,00 TWD 513,000 282.474,94 0,12 0,12

TRIPOD TECHNOLOGY CORP - 573.000,00 TWD 62,300 932.425,23 0,40 0,40

TSRC CORP - 350.700,00 TWD 59,000 540.454,49 0,23 0,23

TUNG HO STEEL ENTERPRISE CORP - 233.000,00 TWD 29,700 180.752,25 0,08 0,08

U-MING MARINE TRANSPORT CORP - 152.000,00 TWD 46,450 184.416,87 0,08 0,08

UNITED MICRO ELECTRONICS - 5.579.000,00 TWD 11,700 1.704.957,56 0,73 0,73

WISTRON CORP - 841.115,00 TWD 30,100 661.291,93 0,28 0,28

YULON MOTOR CO LTD - 203.000,00 TWD 55,000 291.628,58 0,13 0,12

Thailand

ADVANCED INFO SERVICE PUBLIC CO LTD LOCAL 288.300,00 THB 209,000 1.494.045,36 0,64 0,64

BANGKOK BANK PUBLIC FOREIGN 46.100,00 THB 209,000 238.902,15 0,10 0,10

BANGKOK BANK PUBLIC LOCAL 372.200,00 THB 195,500 1.804.246,97 0,77 0,77

BANK OF AYUDHYA PCL - 1.569.600,00 THB 32,500 1.264.868,00 0,54 0,54

BANK OF AYUDHYA PCL - 5.800,00 THB 32,500 4.673,95 0,00 0,00

BANPU PUBLIC CO LTD -LOC- 77.400,00 THB 412,000 790.698,71 0,34 0,34

CPSEVEN ELEVEN PCL FOREIGN 1.647.900,00 THB 46,000 1.879.583,14 0,80 0,80

KASIKORNBANK PLC FOR 197.300,00 THB 193,500 946.631,41 0,41 0,40

KASIKORNBANK PLC LOC 226.900,00 THB 193,500 1.088.650,11 0,47 0,46

PTT EXPLORATION PRODUCTION (L) 437.900,00 THB 164,000 1.780.703,65 0,76 0,76

PTT EXPLORATION PRODUCTION FOREIGN 81.733,00 THB 164,000 332.364,13 0,14 0,14

SIAM CEMENT PUBLIC CO LTD FOREIGN 9.900,00 THB 468,000 114.882,51 0,05 0,05

SIAM COMM. BK. PUBL. CO. LOCAL 527.900,00 THB 181,500 2.375.752,23 1,02 1,01

THAI OIL PUBLIC CO LTD -FRGN- 131.800,00 THB 67,500 220.593,16 0,09 0,09

Total shares 213.819.458,17 91,42 90,90

Options and futures

Exchange-listed futures

Hong Kong

HANG SENG CHINA ENTERPR INDEX JAN 13 14,00 HKD 11.451,000 784.414,85 0,34 0,33

Suspense accounts (futures)

Hong Kong

HANG SENG CHINA ENTERPR INDEX JAN 13 -7.925.400,00 HKD 1,000 -775.578,11 -0,33 -0,33

Total options and futures 8.836,74 0,00 0,00

Warrants

Malaysia

IJM CORP BHD 24/10/14 62,00 MYR 1,190 18,30

IJM LAND BHD 11/09/13 CW13 30,00 MYR 0,745 5,54

Total Warrants 23,84

Forward contracts EUR -8.500,43 0,00

TOTAL SECURITIES PORTFOLIO 233.882.147,40 100,00 99,43

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 10.027.375,54 EUR 1,000 10.027.375,54 4,26

TOTAL RECEIVED COLLATERAL 10.027.375,54 4,26

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO 1.273.237,87 EUR 1,000 1.273.237,87 0,54

KBC GROUP GBP 825,76 GBP 1,000 1.018,07

KBC GROUP HKD 130.295,15 HKD 1,000 12.750,66 0,01

KBC GROUP MYR 0,05 MYR 1,000 0,01

KBC GROUP SEK 9.446,40 SEK 1,000 1.101,39

KBC GROUP SGD 25.699,19 SGD 1,000 15.957,27 0,01

KBC GROUP THB 13.367.043,78 THB 1,000 331.442,52 0,14

KBC GROUP USD -413.571,35 USD 1,000 -313.691,86 -0,13

Total demand accounts 1.321.815,93 0,56

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 69.156,67 EUR 1,000 69.156,67 0,03

KBC GROUP FUT. REK. HKD 1.354.895,48 HKD 1,000 132.589,81 0,06

Total managed futures accounts 201.746,48 0,09

TOTAL CASH AT BANK AND IN HAND 1.523.562,41 0,65

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 103.497,14 EUR 1,000 103.497,14 0,04

KBC GROUP TWD TE ONTVANGEN 106.353,00 TWD 1,000 2.777,93 0,00

Netherlands

KBC CLEARING NV DEKKING HKD 459.200,00 HKD 1,000 44.937,22 0,02

Total receivables 151.212,29 0,06

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -10.027.375,54 EUR 1,000 -10.027.375,54 -4,26

KBC GROUP EUR PAYABLE -181.651,75 EUR 1,000 -181.651,75 -0,08

Payables -10.209.027,29 -4,34

TOTAL RECEIVABLES AND PAYABLES -10.057.815,00 -4,28

OTHER

Interest receivable EUR 179.854,35 0,08

Accrued interest EUR 4.980,56 0,00

Expenses payable EUR -330.734,90 -0,14

TOTAL OTHER -145.899,99 -0,06

TOTAL NET ASSETS 235.229.370,36 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium -0,01 0,02 0,02 0,03 Bermuda 0,24 0,21 0,00 0,00 China 16,38 17,34 17,28 19,20 Cayman Islands 2,61 1,33 1,91 2,17 Hong Kong 10,49 9,61 10,27 9,59 India 12,25 11,23 11,09 11,27 Indonesia 4,23 4,39 6,19 5,67 Ireland 0,00 0,54 0,31 0,34 South Korea 25,61 27,41 24,31 25,31 Malaysia 5,14 5,15 5,44 3,53 Philippines 0,98 0,93 2,01 1,82 Thailand 2,81 2,70 4,16 6,13 Taiwan 18,77 19,14 17,01 14,94 U.S.A. 0,50 0,00 0,00 0,00 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 28,51 25,60 24,71 24,61 Consum(cycl) 10,59 12,09 10,11 9,62 Cons.goods 5,91 4,78 6,16 6,32 Pharma 0,85 1,12 1,14 1,53 Financials 23,61 23,14 23,25 24,48 Technology 19,73 20,65 21,13 21,70 Telecomm. 6,38 7,56 8,10 6,23 Utilities 2,37 2,57 2,82 2,79 Real est. 2,05 2,50 2,57 2,72 Various 0,00 -0,01 0,01 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 EUR -1,05 0,18 0,37 0,55 HKD 29,55 28,83 29,59 31,18 IDR 4,68 4,77 6,80 6,05 INR 11,76 10,50 10,22 10,69 KRW 25,63 27,26 24,15 25,15 MYR 5,14 5,12 5,41 3,51 PHP 0,99 0,93 2,00 1,81 SGD 0,01 0,01 0,01 0,01 THB 2,94 2,86 4,26 6,23 TWD 19,98 19,12 17,07 14,84 USD 0,37 0,42 0,12 -0,02 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND NEW ASIA (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 223.526.420,82 104.109.157,83 327.635.578,65 Sales 134.189.536,90 168.055.944,63 302.245.481,52 Total 1 357.715.957,71 272.165.102,46 629.881.060,17 Subscriptions 159.228.472,50 87.984.061,85 247.212.534,35 Redemptions 67.206.265,19 152.904.383,33 220.110.648,52 Total 2 226.434.737,69 240.888.445,18 467.323.182,87 Monthly average of total assets

274.517.162,16 255.957.608,24 264.911.778,99

Turnover rate 47,82 % 12,22 % 61,36 %

1st half of year 2nd half of year YearPurchases 223.526.420,82 104.109.157,83 327.635.578,65 Sales 134.189.536,90 168.055.944,63 302.245.481,52 Total 1 357.715.957,71 272.165.102,46 629.881.060,17 Subscriptions 159.228.472,50 87.984.061,85 247.212.534,35 Redemptions 67.206.265,19 152.904.383,33 220.110.648,52 Total 2 226.434.737,69 240.888.445,18 467.323.182,87 Monthly average of total assets

265.552.561,89 243.796.533,49 259.151.365,93

Corrected turnover rate 49,44 % 12,83 % 62,73 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR EUR 10.027.375,54 10.027.375,54 N/A 31.12.2012

KBCCLEAR DEKKING HKD HKD 459.200,00 44.937,22 N/A 31.12.2012

HANGSCHE 13/01/2013 HKD 8.015.700,03 784.414,85 50,00 21.12.2012

KBC AK-VK HKD-EUR 130313-121214 10.11127

HKD 7.800.000,00 763.306,49 N/A 14.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 649.041,90 24.651,06 461.182,06 10.507,00 616.158,67 55.353,06 671.511,73

2011 - 12 303.821,86 10.693,58 710.174,42 21.994,78 209.806,11 44.051,87 253.857,97

2012 - 12 45.558,10 52.085,45 60.928,52 12.413,69 194.435,69 83.723,63 278.159,32

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 328.254.364,71 9.763.339,48 229.459.051,65 4.065.747,94

2011 - 12 160.335.205,50 4.432.477,00 357.897.689,30 8.787.490,27

2012 - 12 23.706.656,84 20.688.423,81 32.019.372,73 4.951.145,61

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 372.650.998,76 565,69 435,28

2011 - 12 113.648.768,11 466,60 357,63

2012 - 12 143.803.731,30 556,84 424,41

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 149.705,00 18.698,00 131.007,00 131.007,00

2012 - 12 391.626,05 358.549,80 164.083,25 164.083,25

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 67.000.736,71 8.598.202,97

2012 - 12 203.372.247,68 185.645.933,91

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 61.162.118,28 466,86

2012 - 12 91.425.639,06 557,19

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0146025409 EUR 18.39% 6.18% -0.82% 8.71% 28/01/1994 0.60%

DIV BE0152245529 EUR 18.34% 6.16% -0.83% 8.69% 28/01/1994 0.58%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228552855 EUR 18.39% 24/11/2011 22.36%

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. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 2.24 EUR net (2.98 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.721% Classic Shares Capitalization: 1.779% Institutional B Shares Capitalization: 1.713% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 251,354 151,362 60.22%

CSFBSAS 428 245 57.14%

MERRILL 9,377 5,861 62.50%

MORGAN STANLEY 11,365 7,103 62.50%

NOMURA 134,224 80,448 59.94%

UBSWDR 36,683 22,927 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.6% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.6% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The Hang Seng China Enterprises Index is a capitalization-weighted index comprised of state-owned Chinese companies (H-Shares) listed on the Stock Exchange of Hong Kong. The base value of this index is 2000 as of January 3, 2000. The Stock Exchange of Hong Kong has all proprietary rights with repect to the index. In no way the Stock Exchange of Hong Kong endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. The Stock Exchange of Hong Kong disclaims any liability for the issue and offering of the shares of this undertaking for collective investment. The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service.

Name Maximum management fee Horizon-Access India Fund-Classic Shares 1,60

KBC Equity Fund-New Asia-Classic Shares 1,60

KBC Equity Fund-New Asia-Institutional B Shares 1,60

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 532.806,48 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ANGANG STEEL COMPANY LTD 'H' HKD 1.839 5,680 1.022,20

BELLE INTERNATIONAL HOLDINGS LTD HKD 223.543 16,820 367.952,21

CHINA CITIC BANK 'H' HKD 1.602.194 4,600 721.235,81

CHINA COMMUNICATIONS & CONSTRUCTION HKD 245.930 7,480 180.018,63

CHINA MERCHANTS BANK CO LTD -H- HKD 415.499 17,100 695.297,14

CHINA NATL. BUILDING MATERIAL -H- HKD 1.081.827 11,340 1.200.536,09

CHINA RAILWAY CONSTRUCTIO-H- HKD 1.241.499 8,810 1.070.352,02

CHINA RAILWAY GROUP LTD -H- HKD 258.000 4,530 114.372,67

CHINA UNICOM HONG KONG LTD HKD 157.992 12,420 192.026,45

COSCO PACIFIC HKD 281.999 11,040 304.663,90

DONGFANG ELECTRICAL MACHINERY -H- HKD 310.799 15,640 475.686,37

ESPRIT HOLDINGS LTD HKD 8 10,740 8,41

GREAT WALL MOTOR CO LTD -H- HKD 246.999 24,450 590.987,65

GUANGDONG INVESTMENT HKD 545.201 6,090 324.921,38

GUANGZHOU R&F PROPERTIES COMP.LTD HKD 1.043.999 12,900 1.317.935,46

KINGBOARD CHEMICALS HOLDINGS HKD 11.501 27,500 30.950,85

METALLURGICAL CORP OF CHINA LTD -H- HKD 619.999 1,510 91.616,20

SHANDONG WEIGAO GP MEDICAL -H- HKD 64.001 7,710 48.288,70

SHIMAO PROPERTY HOLDINGS LTD HKD 339.999 14,620 486.440,09

WUMART STORES INC -H- HKD 179.001 16,680 292.183,61

ZHAOJIN MINING INDUSTRY LTD HKD 5.177 12,100 6.130,10

ZHUZHOU CSR TIMES ELECTRIC - H HKD 182.005 28,700 511.174,95

ZIJIN MINING GROUP CO -H- HKD 989.514 3,050 295.342,63

Total 9.319.143,52

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FRANCE 2003 2,25% 25/07/2020 EUR 137.000 EUR 199.342,26

FRANCE 2004 1,60% 25/07/2015 EUR 1.637.000 EUR 2.103.548,27

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 212.000 EUR 233.724,06

FRANCE - 04/55 4.00 % 25/04 EUR 814.000 EUR 997.608,28

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 880.000 EUR 986.051,44

FRANCE - 08/14 3.00% 12/07 EUR 1.526.000 EUR 1.616.815,31

NEDERLAND 2005 4% 15/01/37 EUR 2.842.000 EUR 3.890.285,91

Total 10.027.375,53 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Technology

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND TECHNOLOGY

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 27 June 1997 Initial subscription price: 1000 USD Currency: USD Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 126.55 USD Currency: USD

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies in the technology sector where conditions are such as to ensure accelerated economic growth in the short or medium term.

RISK CONCENTRATION Shares in the technology sector.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. In Europe the debt crisis continued to rage unabated. Five euro countries needed a bail-out from the European emergency funds. Greece twice reached an agreement during the year with its private sector creditors concerning a rescheduling of its bond debts in their hands. Spain came into the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. Although more jobs have in fact been created than lost in the US since 2010, the rate of employment growth has remained on the low side. And wages increased very little: Household purchasing power consequently rose to only a limited extent and provided little support for economic growth, which remained extremely lacklustre (+2.1% y-o-y in the first three quarters of 2012).

In the EMU real GDP shrank by 0.3% y-o-y. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany fulfilled its traditional role as locomotive of the European economy to a lesser extent than in the recent past. Greater divergence within Europe resulted in a further decline in unemployment in Germany and an alarmingly rapid rise in unemployment in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. The weak growth in the Old World was also not without its consequences for the export performance of the growth countries. Over the past few years, however, domestic demand (due to a rapidly growing middle class with a high consumption ratio) and inter-regional trade within Asia have played an increasingly important role. The region is better armed to deal with financial crises than it was in the past. Public finances are healthy, the balance of payments is generally neutral (China actually has an astronomical surplus) and the domestic savings buffer is high. Asia’s economic development no longer depends on fickle foreign capital. Thanks to the contribution by the New World the growth of world GDP held up in 2012 (estimated at 2-2.5%). The technology sector largely performed in line with the broader market. There were, however, significant differences in return between the various subsectors. The software sector (45% of the fund) – our most overweight subsector – outperformed the wider technology sector. The technology sector is experiencing a number of structural changes at present, which will have consequences in both the long and the short term. The clearest trend comprises increasing investments in data centres for companies. These relate to ‘cloud computing’, in which applications are managed centrally. Users access these applications via the internet, but the programs themselves are no longer administered locally. Some companies have gone a step further, hiring the software from an external manufacturer. The software supplier (‘SaaS’ or ‘software as a service’) takes care of the operational management and maintenance of the application. Cloud computing has accordingly given the software sector a strong boost. The semiconductor sector (18% of the fund) performed less well than the wider technology sector. At the start of the year we felt reasonably positive about the sector. Stock levels among the main end-customers were clearly bottoming out at that time. Our judgement was based on a resumption in final demand and potential new inventory building in the second half, enabling semiconductor manufacturers to grow appreciably more quickly than their end-customers in 2012. As the year went by and negative signals began to emerge of weak final demand for consumer electronics and industrial infrastructure, it became clear that our assumptions had been overoptimistic and we reduced our position in the semiconductor sector to neutral. The hardware sector ( 35%) performed significantly less well than the wider technology sector. The weak demand for PCs lead logically to disappointing quarterly figures for all PC manufacturers. The launch of Windows 8 did not produce the hoped for bounceback in the sector. Demand for PCs remain strong only in Asia, but this was not sufficient to drag the entire sector along. Smartphones and tablets were the two outstanding growth segments in 2012, but both were dominated by Samsung and Apple. A notable trend here was that both Samsung and Apple increasingly manufactured components internally. Together with SAP and Samsung, Apple (10% of the fund) led the field among the big technology companies. Particularly in the first half the company of the late Steve Jobs performed very strongly. During the last three months the share had to make up ground on concerns over the company's growth prospects.

2.1.8 FUTURE POLICY The US and European barometers measuring confidence among business leaders peaked in spring 2011 at record levels but have slipped over the past 18 months. In the US they have ended up in the twilight zone between recession and expansion. In Europe they are below freezing point. We are expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as jobs growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. In Europe the budgetary plans, the banks' tighter lending policy and the high level of uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could still see a further contraction in European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified.

Economic growth in Europe will remain below par. There is a greater need for budgetary reform in Europe than in the US, while monetary policy is less aggressive and banks' lending policy more restrictive. The euro crisis has led the European banks to adopt a tough stance on lending. In contrast, real wage rises (however limited) will be somewhat higher in Europe than in the US. Today's world is at any event one of two speeds. The mature industrialised economies (US, Europe, Japan) still find themselves in a low-growth environment, with no underlying inflationary pressure, persistently low interest rates and runaway public finances. The picture in the New World is altogether different. The strong economic growth has already created inflationary pressure in Asia. Monetary policy consequently has to steer a more cautious course, alternating between restrictive (as in 2011) and expansionary (as at present). Monetary policy in China and elsewhere in Asia is therefore highly alert to and aimed at the avoidance of asset inflation. Not just interest rates are being used for this purpose; there is also active intervention in the credit market and the currency market. This cautious policy is bearing fruit. The rate of increase in the money supply in China has already slowed considerably, to match the rate of nominal GDP growth. Inflation has fallen from 6.5% in September 2011 to 2.1% in November 2012. The risk of overheating therefore appears under control. During a period in which a change in leadership of the Chinese Communist Party will be installed, little will be left to chance and economic growth will be barely lower than in previous years. One of the major challenges for this decade will be the further development of consumption in China and the rest of Asia. That could help bring about a more balanced economic world order: it will not only reduce the region’s dependence on exports but, at least as importantly, will have an effect on international capital flows. More consumption in China will mean lower savings and higher imports, including from the US. That will help the West to ‘grow out’ of its debt problems. In our share selection we are guided by three major developments that ensure strong structural growth. Mobility is driving the development and sale of smart phones and tablet PCs. The digital living room is introducing all sorts of new applications in the home. Cloud computing (see above) allows companies to outsource the management of applications more easily. All these factors are leading to an exponential growth in data traffic. This is leading to additional investment in support IT infrastructure such as storage systems, servers and network equipment. Uncertainty over the macroeconomic environment could temporarily put a spoke in the wheel, but the structural growth engines are very strong. The subsectors best positioned to benefit from these trends are the software and Internet sectors, which therefore remain our preferred selections. We have a particularly soft spot for the Internet sector. This will continue to deliver the fastest turnover growth and highest margins. We have become more positive about the semiconductor sector. We continue to believe that the fundamentals of the sector will improve as the year progresses, but the recovery is likely to be gradual. In our share selection we are opting for companies with specific product cycles and companies that will benefit from an upturn in economic growth. Our least favourite subsector is hardware. Even so, we are expecting improvement too here in the second half. The launch of Windows 8 in combination with ultrabooks (i.e. very slim laptops) could boost the demand for PCs. The advent of tablets and smart phones as an alternative to the traditional PC does however remain a threat in the longer term, and demand also remains weak in the short term. Apart from (5% of the fund) and Apple (10% of the fund) we are avoiding consumer electronics in our portfolio. We see more opportunities in the corporate market, but our preference remains for the software producers. With regard to regional allocation we clearly preferred the US to Europe. Japanese companies are not benefiting enough from the structural growth factors and are moreover expensively priced. Asia is also underweighted. Companies from this region are largely production companies that manufacture consumer electronics (such as smart phones, PCs and printers) on behalf of mostly American companies (such as Apple). These companies operate at very low margins and are moreover involved in a fierce competitive battle.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 447.977.748,30 132.807.216,93

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 632.775,43 6.127.995,61 C. Shares and similar instruments a) Shares 433.679.085,21 131.104.376,27 Of which securities lent 582.777,98 6.722.566,35

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 167.954,99 2.363,52 b) Tax assets 2.307,20 2.271,85 B. Payables a) Accounts payable (-) -122.396,03 -98.686,27 d) Collateral (-) -632.775,43 -6.127.995,61

V. Deposits and cash at bank and in hand A. Demand balances at banks 14.878.664,32 2.032.462,00

VI. Accruals and deferrals A. Expense to be carried forward 6.680,20 B. Accrued income 24.115,36 58.887,05 C. Accrued expense (-) -651.982,75 -301.137,69

TOTAL SHAREHOLDERS' EQUITY 447.977.748,30 132.807.216,93

A. Capital 391.986.212,95 88.455.949,82

B. Income equalization -485.653,43 1.054.111,17

C. Profit(Loss) carried forward 44.351.267,11 50.550.276,63

D. Result for the period 12.125.921,67 -7.253.120,69

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 632.775,43 6.127.995,61

IX Financial instruments lent 582.777,98 6.722.566,35

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 13.045.451,82 -5.092.944,45 E. Open-end undertakings for collective investment 66,84 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 592.970,98 24.689,50

II. Investment income and expenses A. Dividends 3.869.750,11 1.699.579,08 B. Interests a) Securities and money market instruments 123.420,15 128.822,49 b) Cash at bank and in hand and deposits 24.294,00 13.580,72 C. Interest on borrowings (-) -4.994,87 -4.629,88

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

1.448.495,54 25.578,93

B. Other 171.864,74

IV. Operating expenses A. Investment transaction and delivery costs (-) -1.057.903,56 -642.246,60 B. Financial expenses (-) -4.019,79 -9.895,76 C. Custodian's fee (-) -108.887,37 -177.062,72 D. Manager's fee (-) a) Financial management Classic Shares -1.286.358,57 -2.469.329,11 Institutional B Shares -3.695.700,96 -83.821,93 b) Administration and accounting management -357.016,06 -178.390,13 F. Formation and organisation expenses (-) -34.188,15 -421.748,67 G. Remuneration, social security charges and

pension -26,26 -36,77

H. Services and sundry goods (-) -49.811,17 -44.257,21 J. Taxes Classic Shares -78.941,56 -112.735,06 Institutional B Shares -41.633,97 40.601,88 K. Other expenses (-) -258.978,64 -120.806,58

Income and expenditure for the period Subtotal II + III + IV -1.512.501,13 -2.184.932,58

V. Profit (loss) on ordinary activities before tax 12.125.921,67 -7.253.120,69

VII. Result for the period 12.125.921,67 -7.253.120,69

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 55.991.535,35 44.351.267,11 Profit (loss) brought forward from the previous

financial year 44.351.267,11 50.550.276,63

Profit for the period available for appropriation 12.125.921,67 -7.253.120,69 Income on the creation of shares (income on the

cancellation of shares) -485.653,43 1.054.111,17

II. (Appropriations to) Deductions from capital -55.991.535,35

III. Profit (loss) to be carried forward 44.351.267,11

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND TECHNOLOGY

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Austria

AMS AG - 40.471,00 CHF 98,000 4.332.932,31 1,00 0,97

Belgium

REALDOLMEN STRIP-VVPR 9,00 EUR 0,001 0,01

Bermuda

DIGITAL CHINA HOLDINGS LTD - 694.000,00 HKD 13,220 1.183.702,24 0,27 0,26

Brazil

COMPANHIA BRASILEIRA DE MEIOS - 17.560,00 BRL 56,990 488.750,29 0,11 0,11

Cayman Islands

AAC TECHNOLOGY HOLDINGS_INC - 620.000,00 HKD 27,100 2.167.766,62 0,50 0,48

FOXCONN INTERNATIONAL HLDGS - 174.500,00 TWD 90,900 546.232,90 0,13 0,12

JU TENG INTERNATIONAL HOLDINGS LTD - 2.569.562,00 HKD 3,660 1.213.365,75 0,28 0,27

TENCENT HOLDINGS - 190.551,00 HKD 249,000 6.121.560,20 1,41 1,37

China

ZTE CORPORATION - 160,00 HKD 13,060 269,60

France

GEMALTO NV - 10.078,00 EUR 68,000 903.504,79 0,21 0,20

INGENICO - 25.323,00 EUR 43,000 1.435.591,26 0,33 0,32

STMICROELECTRONICS NV - 90.000,00 EUR 5,368 636.945,41 0,15 0,14

TELECOM CITY - 96.310,00 GBP 7,865 1.231.240,53 0,28 0,28

Germany

INFINEON TECHNOLOGIES AG - 225.000,00 EUR 6,129 1.818.106,56 0,42 0,41

KABEL DEUTSCHLAND HOLDING AG - 27.541,00 EUR 56,570 2.054.059,78 0,47 0,46

SAP AG - 174.590,00 EUR 60,690 13.969.591,20 3,22 3,12

Hong Kong

KINGDEE INTERNATIONAL SOFTWARE - 9.200,00 HKD 1,450 1.721,11

Japan

ANRITSU CORP - 92.000,00 JPY 1.020,000 1.085.251,37 0,25 0,24

CANON INC - 49,00 JPY 3.340,000 1.892,71

DENA CO LTD - 20.500,00 JPY 2.842,000 673.783,35 0,16 0,15

FUJITSU LTD - 654,00 JPY 360,000 2.722,84 0,00 0,00

HITACHI - 753.476,00 JPY 504,000 4.391.797,46 1,01 0,98

HITACHI HIGH-TECHNOLOGIES CO - 41.000,00 JPY 1.775,000 841.636,49 0,19 0,19

KEYENCE CORP - 10.561,00 JPY 23.870,000 2.915.411,11 0,67 0,65

KURITA WATER INDUSTR. - 563,00 JPY 1.892,000 12.318,90 0,00 0,00

KYOCERA - 14.949,00 JPY 7.770,000 1.343.307,70 0,31 0,30

MURATA MANUFACTURING CO - 25.700,00 JPY 5.050,000 1.500.952,14 0,35 0,34

NIDEC - 81,00 JPY 5.020,000 4.702,52 0,00 0,00

NINTENDO CO - 48,00 JPY 9.170,000 5.090,41 0,00 0,00

NIPPON EL. GLASS CO - 500,00 JPY 487,000 2.816,06 0,00 0,00

RICOH CO - 604,00 JPY 907,000 6.335,58 0,00 0,00

TOSHIBA CORP - 497.000,00 JPY 337,000 1.936.995,59 0,45 0,43

TREND MICRO INC - 156,00 JPY 2.593,000 4.678,10 0,00 0,00

Netherlands

ASM INTERNATIONAL - 31.475,00 EUR 27,155 1.126.841,26 0,26 0,25

ASML HOLDING NV - 54.481,00 EUR 48,000 3.447.732,02 0,80 0,77

INTERXION HOLDINGS NV - 76.843,00 USD 23,760 1.825.789,68 0,42 0,41

NXP SEMICONDUCTOR NV - 65.983,00 USD 26,370 1.739.971,71 0,40 0,39

YANDEX NV - 97.203,00 USD 21,570 2.096.668,71 0,48 0,47

Russia

MAIL.RU GROUP LTD - 99.482,00 USD 34,500 3.432.129,00 0,79 0,77

South Korea

LG PHILIPS LCD CO LTD LG PHILIPS LCD CO LTD -ADR- 51.229,00 USD 14,480 741.795,92 0,17 0,17

NCSOFT CORP - 1.103,00 KRW 150.500,000 155.058,25 0,04 0,04

NHN CORP - 2.056,00 KRW 227.000,000 435.945,13 0,10 0,10

SAMSUNG ELECTRO MECHANICS CO. - 6.270,00 KRW 99.200,000 580.981,20 0,13 0,13

SAMSUNG ELECTRONICS - 18.077,00 KRW 1.522.000,000 25.699.452,78 5,93 5,74

SAMSUNG SDI CO LTD - 5.246,00 KRW 151.000,000 739.925,68 0,17 0,17

Spain

AMADEUS IT HOLDING SA - 43.687,00 EUR 19,050 1.097.221,72 0,25 0,25

Sweden

ERICSSON "B" 300.000,00 SEK 65,100 3.002.093,09 0,69 0,67

HEXAGON AB -B- 50.000,00 SEK 163,100 1.253.562,17 0,29 0,28

Taiwan

ACER INC. - 969,00 TWD 25,200 840,90

ASUSTEK COMPUTER INC - 51,00 TWD 326,500 573,42

CATCHER TECHNOLOGY CO LTD - 1.683,00 TWD 144,000 8.345,75 0,00 0,00

CHROMA ATE INC - 800,00 TWD 64,700 1.782,43

COMPAL ELECTRONICS - 382,00 TWD 19,550 257,17

DELTA ELECTRONIC INDUSTRIAL - 200.000,00 TWD 106,500 733.496,67 0,17 0,16

HON HAI PRECISION - 1.250.217,00 TWD 88,900 3.827.416,32 0,88 0,85

HTC CORPORATION - 310,00 TWD 300,500 3.207,93 0,00 0,00

MEDIATEK INCORPORATION - 200.277,00 TWD 323,500 2.231.125,01 0,51 0,50

NAN YA PRINTED CIRCUIT BOARD C - 535,00 TWD 35,900 661,40

NOVATEK MICROELECTRONICS CORP - 50.000,00 TWD 117,500 202.314,22 0,05 0,05

PEGATRON CORP - 113,00 TWD 37,550 146,12

POWERTECH TECHNOLOGY INC - 961,00 TWD 46,950 1.553,74

RADIANT OPTO-ELECTRONICS CORP - 111.240,00 TWD 119,500 457.770,11 0,11 0,10

SHIN ZU SHING CO LTD - 1.524,00 TWD 89,500 4.697,06 0,00 0,00

SIMPLO TECHNOLOGY CO LTD - 8.178,00 TWD 146,000 41.116,72 0,01 0,01

SYNNEC TECHNOLOGY INTERNATIONA - 67,00 TWD 53,500 123,44

TAIWAN SEMICONDUCTOR - 1.700.268,00 TWD 97,000 5.679.468,02 1,31 1,27

TAIWAN SEMICONDUCTOR ADR 330.000,00 USD 17,160 5.662.800,00 1,31 1,26

TPK HOLDING CO LTD - 1.231,00 TWD 513,000 21.746,73 0,01 0,01

WISTRON CORP - 487,00 TWD 30,100 504,79

WPG HOLDINGS CO LTD - 562,00 TWD 38,000 735,43

U.K.

ARM HOLDG - 467.820,00 GBP 7,680 5.839.999,34 1,35 1,30

MONITISE PLC - 685.496,00 GBP 0,340 378.840,70 0,09 0,09

SPIRENT COMMUNICATIONS PLC - 537.903,00 GBP 1,507 1.317.619,50 0,30 0,29

U.S.A.

ACCENTURE LTD "A" 103.622,00 USD 66,500 6.890.863,00 1,59 1,54

AKAMAI TECHNOLOGIES INC - 25.614,00 USD 40,910 1.047.868,74 0,24 0,23

ALLIANCE DATA SYSTEMS CORP - 19.039,00 USD 144,760 2.756.085,64 0,64 0,62

ALTERA CORP. - 56.352,00 USD 34,440 1.940.762,88 0,45 0,43

AMAZON COMM. INC. - 7.155,00 USD 251,140 1.796.906,70 0,41 0,40

AMPHENOL CORPORATION "A" 40.614,00 USD 64,700 2.627.725,80 0,61 0,59

APPLE INC - 80.631,00 USD 533,030 42.978.741,93 9,92 9,60

AVAGO TECHNOLOGIES LTD - 66.700,00 USD 31,660 2.111.722,00 0,49 0,47

BRIGHTCOVE INC - 150.000,00 USD 9,040 1.356.000,00 0,31 0,30

BROADCOM CORP. "A" 96.159,00 USD 33,210 3.193.440,39 0,74 0,71

CADENCE DESIGN SYSTEMS - 342.980,00 USD 13,510 4.633.659,80 1,07 1,03

CAVIUM INC - 45.000,00 USD 31,210 1.404.450,00 0,32 0,31

CISCO SYSTEMS INC - 713.418,00 USD 19,650 14.018.663,70 3,23 3,13

CITRIX SYSTEMS INC - 27.061,00 USD 65,750 1.779.260,75 0,41 0,40

COGNIZANT TECHNOLOGY SOLUTIONS CORP. - 52.643,00 USD 74,050 3.898.214,15 0,90 0,87

COMVERSE INC - 42,00 USD 28,530 1.198,26

COMVERSE TECHN. INC - 429,00 USD 3,840 1.647,36

EBAY INC. - 211.020,00 USD 51,020 10.766.240,40 2,48 2,40

ELLIE MAE INC - 114.000,00 USD 27,750 3.163.500,00 0,73 0,71

EMC CORPORATION - 352.744,00 USD 25,300 8.924.423,20 2,06 1,99

EQUINIX INC - 13.013,00 USD 206,200 2.683.280,60 0,62 0,60

EXACTTARGET INC - 49.692,00 USD 20,000 993.840,00 0,23 0,22

FACEBOOK INC - 93.000,00 USD 26,630 2.476.590,00 0,57 0,55

FUSION-IO INC - 65.383,00 USD 22,930 1.499.232,19 0,35 0,34

F5 NETWORKS INC - 25.328,00 USD 97,150 2.460.615,20 0,57 0,55

GOOGLE INC -A- 38.414,00 USD 709,370 27.249.739,18 6,28 6,08

I.B.M. - 111.966,00 USD 191,550 21.447.087,30 4,95 4,79

IAC/INTERACTIVECORP - 32.664,00 USD 47,300 1.545.007,20 0,36 0,35

INTEL CORP - 204.857,00 USD 20,630 4.226.199,91 0,97 0,94

INTUIT INC - 54.358,00 USD 59,500 3.234.301,00 0,75 0,72

L.S.I.LOGIC CORP - 71.720,00 USD 6,860 491.999,20 0,11 0,11

LINKEDIN CORPORATION - 35.290,00 USD 114,820 4.051.997,80 0,93 0,91

MASTERCARD INC - 14.677,00 USD 491,280 7.210.516,56 1,66 1,61

MAXIM INTEGRATED PRODUCTS - 65.000,00 USD 29,400 1.911.000,00 0,44 0,43

MELLANOX TECHNOLOGIES LTD - 32.664,00 USD 59,380 1.939.588,32 0,45 0,43

MICROSOFT CORP - 863.553,00 USD 26,730 23.082.771,69 5,32 5,15

MOTOROLA SOLUTIONS INC - 35.000,00 USD 55,680 1.948.800,00 0,45 0,44

NUANCE COMMUNICATIONS - 71.395,00 USD 22,320 1.593.536,40 0,37 0,36

ORACLE CORP - 573.709,00 USD 33,320 19.115.983,88 4,41 4,27

PRICELINE.COM INC. - 5.887,00 USD 621,200 3.657.004,40 0,84 0,82

PROCERA NETWORKS INC - 47.131,00 USD 18,550 874.280,05 0,20 0,20

QUALCOMM CORP - 220.474,00 USD 62,020 13.673.797,48 3,15 3,05

RACKSPACE HOSTING INC - 15.327,00 USD 74,270 1.138.336,29 0,26 0,25

SALESFORCE.COM INC. - 27.282,00 USD 168,100 4.586.104,20 1,06 1,02

SANDISK CORP - 90.736,00 USD 43,560 3.952.460,16 0,91 0,88

SPRINT NEXTEL CORP - 306.144,00 USD 5,670 1.735.836,48 0,40 0,39

SYMANTEC CORPORATION - 213.275,00 USD 18,810 4.011.702,75 0,93 0,90

SYNOPSYS INC - 50.000,00 USD 31,840 1.592.000,00 0,37 0,36

TERADATA CORP - 62.368,00 USD 61,890 3.859.955,52 0,89 0,86

TEXAS INSTRUMENTS - 120.000,00 USD 30,890 3.706.800,00 0,86 0,83

TOTAL SYSTEMS SERVICES - 20.492,00 USD 21,420 438.938,64 0,10 0,10

TRIMBLE NAVIGATION LTD - 34.000,00 USD 59,780 2.032.520,00 0,47 0,45

VERINT SYSTEMS INC - 31,00 USD 29,360 910,16

VISA INC - 74.683,00 USD 151,580 11.320.449,14 2,61 2,53

VMWARE INC CLASS A - 30.762,00 USD 94,140 2.895.934,68 0,67 0,65

WORKDAY INC - 2.500,00 USD 54,500 136.250,00 0,03 0,03

YAHOO INC. - 150.000,00 USD 19,900 2.985.000,00 0,69 0,67

Total shares 433.679.085,21 100,00 96,81

TOTAL SECURITIES PORTFOLIO 433.679.085,21 100,00 96,81

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 479.957,09 EUR 1,000 632.775,43 0,14

TOTAL RECEIVED COLLATERAL 632.775,43 0,14

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CAD 1.225,72 CAD 1,000 1.231,04

KBC GROUP CHF 610.000,46 CHF 1,000 666.410,84 0,15

KBC GROUP CZK 3.613,01 CZK 1,000 189,81

KBC GROUP DKK 1.937,10 DKK 1,000 342,30

KBC GROUP EURO 1.602.398,09 EUR 1,000 2.112.601,64 0,47

KBC GROUP GBP 103.604,14 GBP 1,000 168.403,03 0,04

KBC GROUP HKD 113.718,00 HKD 1,000 14.671,71 0,00

KBC GROUP JPY 21.990.624,00 JPY 1,000 254.319,64 0,06

KBC GROUP NOK 17.777,14 NOK 1,000 3.194,32 0,00

KBC GROUP SEK 156.400,20 SEK 1,000 24.041,37 0,01

KBC GROUP TRY 196,31 TRY 1,000 109,99

KBC GROUP USD 11.632.123,93 USD 1,000 11.632.123,93 2,60

KBC GROUP ZAR 8.693,96 ZAR 1,000 1.024,70

Total demand accounts 14.878.664,32 3,32

TOTAL CASH AT BANK AND IN HAND 14.878.664,32 3,32

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP USD RECEIVABLE 167.954,99 USD 1,000 167.954,99 0,04

KBC GROUP WHT TO BE RECOVERED EUR 1.750,00 EUR 1,000 2.307,20 0,00

Total receivables 170.262,19 0,04

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -479.957,09 EUR 1,000 -632.775,43 -0,14

KBC GROUP USD PAYABLE -122.396,03 USD 1,000 -122.396,03 -0,03

Payables -755.171,46 -0,17

TOTAL RECEIVABLES AND PAYABLES -584.909,27 -0,13

OTHER

Interest receivable USD 11.396,66 0,00

Accrued interest USD 12.718,70 0,00

Expenses payable USD -651.982,75 -0,15

TOTAL OTHER -627.867,39 -0,14

TOTAL NET ASSETS 447.977.748,30 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Argentinia 0,30 0,00 0,18 0,00 Austria 0,00 0,00 0,21 1,00 Belgium 0,28 0,00 0,00 0,00 Bermuda 0,28 0,24 0,37 0,27 Brazil 0,30 0,94 0,28 0,11 Canada 0,00 0,10 0,00 0,00 China 0,21 0,10 0,03 0,00 Cayman Islands 1,77 0,68 2,14 2,32 Germany 3,14 2,35 2,03 4,11 Spain 0,00 0,00 0,42 0,25 Finland 0,00 0,10 0,00 0,00 France 1,80 0,47 1,03 0,97 U.K. 0,80 1,35 1,04 1,74 Hong Kong 0,78 0,74 0,15 0,00 India 0,42 0,00 0,00 0,00 Israel 0,53 0,00 0,00 0,00 Japan 5,23 6,17 4,98 3,40 South Korea 4,05 5,13 6,26 6,54 Netherlands 1,18 1,14 1,91 2,36 Russia 0,00 0,26 0,38 0,79 Sweden 1,80 0,24 1,43 0,98 Taiwan 5,01 3,73 3,85 4,35 U.S.A. 71,73 76,26 73,31 70,81 South Africa 0,39 0,00 0,00 0,00 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 1,51 1,26 1,96 1,48 Consum(cycl) 2,77 0,89 0,93 2,26 Cons.goods 3,59 2,02 5,69 4,21 Financials 0,00 0,28 0,16 0,11 Technology 90,87 95,07 89,03 91,26 Telecomm. 0,47 0,48 1,92 0,68 Utilities 0,12 0,00 0,00 0,00 Various 0,67 0,00 0,31 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 BRL 0,29 0,92 0,28 0,11 CHF 0,03 0,00 0,21 1,11 EUR 5,57 4,33 3,91 6,38 GBP 0,79 1,22 1,41 1,99 HKD 1,97 1,57 2,39 2,39 INR 0,41 0,00 0,00 0,00 JPY 5,60 6,20 5,97 3,34 KRW 4,00 5,05 6,22 6,15 SEK 1,87 0,25 1,43 0,95 TWD 4,89 3,08 3,62 3,07 USD 74,17 77,38 74,56 74,51 ZAR 0,41 0,00 0,00 0,00 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND TECHNOLOGY (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 327.219.612,33 343.839.368,73 671.058.981,06 Sales 148.432.772,86 234.092.843,32 382.525.616,18 Total 1 475.652.385,18 577.932.212,05 1.053.584.597,23 Subscriptions 256.408.686,45 309.547.049,20 565.955.735,65 Redemptions 75.782.307,14 186.217.600,87 261.999.908,01 Total 2 332.190.993,59 495.764.650,07 827.955.643,66 Monthly average of total assets

286.794.132,24 427.698.992,32 357.246.562,28

Turnover rate 50,02 % 19,21 % 63,16 %

1st half of year 2nd half of year YearPurchases 327.219.612,33 343.839.368,73 671.058.981,06 Sales 148.432.772,86 234.092.843,32 382.525.616,18 Total 1 475.652.385,18 577.932.212,05 1.053.584.597,23 Subscriptions 256.408.686,45 309.547.049,20 565.955.735,65 Redemptions 75.782.307,14 186.217.600,87 261.999.908,01 Total 2 332.190.993,59 495.764.650,07 827.955.643,66 Monthly average of total assets

280.680.449,98 347.226.005,66 309.606.665,53

Corrected turnover rate 51,11 % 23,66 % 72,88 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 479.957,09 632.775,43 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 1.535.645,51 132.400,15 386.879,11 8.490,75 1.383.682,00 136.207,30 1.519.889,30

2011 - 12 3.046.769,91 373.842,55 4.111.033,46 380.034,84 319.418,45 130.015,01 449.433,47

2012 - 12 299.996,81 159.267,14 177.930,64 36.410,36 441.484,62 252.871,79 694.356,41

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 286.815.902,28 13.419.524,22 278.852.752,53 6.046.270,74

2011 - 12 133.168.260,91 4.563.746,65 614.512.727,16 62.071.558,91

2012 - 12 44.528.300,35 22.493.718,36 26.003.966,28 5.124.184,20

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 210.870.745,03 139,25 133,55

2011 - 12 59.000.629,38 132,84 127,43

2012 - 12 101.368.964,46 148,19 142,14

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 569.482,00 14.362,00 555.120,00 555.120,00

2012 - 12 3.357.202,72 1.575.638,08 2.336.684,64 2.336.684,64

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 75.828.598,26 1.949.061,27

2012 - 12 497.504.639,83 230.353.898,36

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 73.806.587,55 132,96

2012 - 12 346.608.783,84 148,33

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6213773508 EUR 8.43% 8.22% 1.08% 0.0356 27/06/1997 -1.87%

CAP BE6213773508 USD 10.12% 5.21% -0.99% 0.0595 27/06/1997 -0.84%

DIV BE6213774514 EUR 8.41% 8.22% 1.08% 0.0356 27/06/1997 -1.81%

DIV BE6213774514 USD 10.10% 5.21% -0.99% 0.0595 27/06/1997 -0.84%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228907521 EUR 8.43% 25/11/2011 14.83%

CAP BE6228907521 USD 10.12% 25/11/2011 13.79%

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. The figures do not take account of any restructuring. Calculated in USD and 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in USD and in EUR. The return is calculated as the change in the net asset value between two dates expressed

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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.677% Classic Shares Capitalization: 1.669% Institutional B Shares Capitalization: 1.651% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 139,190 84,513 60.72%

CSFBSAS 72,525 40,885 56.37%

DEUTSCHE 9,003 5,094 56.58%

EQ CSA MACQUARIE 23,036 13,674 59.36%

HSBC 2,027 1,014 50.00%

JP MORGAN 59,992 33,429 55.72%

MERRILL 32,052 18,648 58.18%

MORGAN STANLEY 94,470 51,645 54.67%

NOMURA 151,463 66,804 44.11%

SOCGEN 1,060 530 50.00%

UBSWDR 70,982 37,924 53.43%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 113.756,65 USD. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

HEXAGON AB -B- SEK 12.416 163,100 311.284,56

STMICROELECTRONICS NV EUR 38.324 5,368 271.225,51

ZTE CORP -H- HKD 159 13,060 267,91

Total 582.777,98

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FRANCE 2004 1,60% 25/07/2015 EUR 168.000 USD 284.616,63

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 80.000 USD 116.279,93

FRANCE - 08/14 3.00% 12/07 EUR 166.000 USD 231.878,86

Total 632.775,42 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Pharma

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND PHARMA

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 27 February 1998 Initial subscription price: 20000 BEF Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 576.88 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies in the pharmaceutical and healthcare sector where conditions are such as to allow accelerated economic growth in the short or medium term.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund Pharma invests worldwide in companies active in all aspects of health care. These are, in the first place, pharmaceutical companies, but also include manufacturers of generic drugs, biotechnology companies, companies active in medical technology (e.g. cardiovascular and orthopaedic technologies) and medical services such as distributors, hospital chains and health insurers. Our preference is for companies which – thanks in some cases to innovation – display above-average growth at an attractive valuation. The healthcare sector (MSCI World Healthcare) performed extremely well throughout the year. The first three quarters were particularly good. Only in the final quarter did the sector mark time somewhat. The good performances are understandable. As a result of the continuing crisis in Europe and the impact this could have on the European and, by extension, world economy, investors have been taking refuge in safe havens: the United States, the emerging markets or the relatively stable healthcare sector.

Resorting to the stable health sector is self-evident. The pharmaceutical industry may have its challenges, but also has the resources to meet them. The most important challenges in the Pharmaceutical sector are: patent expiry, R&D productivity and governmental pressure on the price of medicinal drugs. A number of companies have managed in recent years gradually to build up a pipeline, either by developing drugs themselves, such as GlaxoSmithKline, or by means of takeovers and agreements, such as Bristol Myers Squibb’s ‘String of Pearls’. Others have proved less successful in doing so, but have taken a different tack: buying back their own shares, sometimes in combination with an attractive dividend yield, such as AstraZeneca and Pfizer. The combination of both mechanisms did at least generate some enthusiasm for this subsector. Another subsector that has done extremely well is biotechnology. Here again we see two different approaches. On the one hand, there are the large, mature companies, with an existing franchise at their disposal. As long as the franchise is not under pressure and there are prospects for expanding it, such companies remain highly in vogue. Gilead for example has a strong anti-HIV franchise and also has the potential to become an important player in HCV (Hepatitis C) with still experimental drugs such as GS-7977. On the other hand, emerging Biotech companies have been the subject of greater interest. Initiatives taken in the early 2000s are now beginning to bear fruit. Jetrea (ocriplasmin), manufactured by the Belgian company ThromboGenics, is on the point of being approved for the treatment of eye disorders. This is not the first time that a Belgian biotech product has reached the market, but it is a first that this is being done by an independent, listed company. In the past Belgian biotech companies were taken over before they reach the finishing line. An example is Tibotec, now the main J&J research hub and the originator of a wide range of drugs for the treatment of HIV. This indicates that a good pipeline turns a biotech company into an interesting prey. In the US and Europe alone takeovers totalling 25 bn USD (source: Bloomberg) have already been announced in the first half of this year. The excellent performance of the biotech sector is therefore not surprising. One subsector that was clearly doing less well is the highly diverse Healthcare Equipment. Try as it might, the sector was unable to shake off the various ills that have been plaguing it for some time: the general lack of innovation, lack of pricing power and the fact that it is a target for governments and/or clients that are cutting back. The small Dental Implants subsector, for example, is closely tied to customers' discretionary spending. In a weak economic climate, this is one of the first things to go. This has resulted in unprecedentedly low valuations for the sector – lower even than in the crisis year of 2008. The orthopaedic and cardiovascular players are more defensive in nature, but here too the sector faces a highly unfavourable combination of circumstances, which has been persisting for some years: no innovation and no pricing power. The utilisation rate has however stopped slowing and there are signs of stabilisation. One subsector that has performed well is (medical) Services. Particularly prominent were the Managed Care companies, i.e. the American commercial health insurers. One of the implications of Obamacare has been the obligatory individual mandate, under which young and healthy customers are required to take out health insurance so as to make the extension of healthcare to other customers affordable: health insurers are obliged to include children living at home at the age of 26 in their parents' 'Health plans'. Similarly, they are no longer permitted to refuse insurance to people on account of their previous medical history. It used to be the case that customers with a chronic disorder were no longer able to take out a new contract when their old one expired other than on onerous and, for most people, unaffordable terms. During the first half of the year there was the idle hope that the US Supreme Court might declare the 'individual mandate' unconstitutional, thereby, according to the most pessimistic observers, undermining Obamacare as a whole. The collapse of Obamacare was regarded as positive for the Managed Care organisations. It patently failed; Obamacare remained intact. By the last quarter of the re-election of President Obama was an important element, with exactly the same argumentation. Opponents of Obamacare hoped for a defeat. And then right at the end of the year the fiscal cliff hung over everything. This came down to the fact that in the event of unchanged policies, the US government would exceed its debt ceiling, after which a number of automatic measures would come into operation, in the form of higher taxes and automatic spending cuts. One of the government's most important expenditure items is healthcare, via Medicare and Medicaid. These measures would have hit hospitals and users of medical services seriously. The fiscal cliff was narrowly avoided.

2.1.8 FUTURE POLICY During the period ahead we think it remains advisable to seek out safe places, for example in healthcare. The 'euro' crisis has still not been resolved and some observers see the first signs that the malaise is spreading to the economically strong euro countries. But we should also not be blind to the new challenges that are looming in the healthcare sector. A US survey commissioned by the government indicates that the costs of healthcare have been rising by nearly 4% a year and, given unchanged policies, will continue to do so in the coming years, with an outlier in 2014, when the costs of healthcare will rise by over 7% as Obamacare comes fully on stream. By 2017 healthcare in the US will cost a mind-boggling 20% of GNP. Needless to say, measures are being planned to curb the rising costs in the US. The utilisation rate in the hospital sector has stabilised. If matters depended solely on the economy the rate would remain unchanged, but as soon as access to the health sector improves we see a rise in the utilisation rate. We expect that from this point onwards the upturn in the hospital sector will be anticipated by a stronger than usual performance by hospitals. On the Equipment side we can only see further gloom and doom; as noted previously, the costs are going through the roof and measures must be taken to bring costs down. Equipment is particularly sensitive to such measures. As long as they are unable to innovate and/or cut costs, they will remain the target of any cost-sensitive player. The Pharmaceutical sector also needs to be on its guard. It is in good shape and has a number of strong points, such as the dividend yield and traditional share buybacks. But it needs to keep a close watch on the situation in the periphery of Europe. Spared to some extent from most of these tribulations is Biotechnology, especially emerging biotechnology. There has been a flood of new drugs that are on the point of approval, even for conditions for which it has so far been notoriously difficult to get anything approved. The prime example is obesity products. The fact that Arena’s small molecule drug lorcaserin was approved for obesity was a breakthrough. It has been 13 years since anything was approved for this condition. But the drug also has its issues, as it is a ‘Fen-Phen’ derivative. ‘Fen-Phen’ or fenfluramine and dexfenfluramine was a weight-loss drug combination that was extraordinarily popular in the 1990s. The drug turned out, however, also to cause serious heart-valve damage. The fact that lorcaserin was associated with carcinogenicity, albeit only among rats, was also not exactly encouraging. Nevertheless, here we are in 2012 and the drug has been approved, despite its modest efficacy – an illustration of the present benevolence of the FDA. As such it is not surprising that we have long regarded biotechnology as a must have in any dynamic portfolio. We have a special interest in Belgian biotechnology. We are without risk of exaggeration one of the most important regions of Europe, with successes that have so far tended to remain obscured behind bigger multinationals, but which thanks to Thrombogenics now have a formidable banner. The IP tax shelter, the experience of the top people in the sector and the visible successes will continue to attract attention, not just on the part of investors but also on the part of new companies seeking a foothold in Europe. Belgium has it all: venture capital, which just needs to be winkled out from savers and unduly cautious investors, the scientists, the experience and a government that remains supportive.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 214.961.290,23 133.073.757,97

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 3.227.304,03 1.068.006,72 C. Shares and similar instruments a) Shares 213.464.250,23 130.751.677,25 Of which securities lent 2.644.443,18 1.144.974,80 b) Closed-end undertakings for collective

investment 1.301.017,20

D. Other securities 9.833,10 14.784,16

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 9.770,36 913.304,38 b) Tax assets 4.934,50 11.930,08 B. Payables a) Accounts payable (-) -109.623,25 -1.064.916,80 c) Borrowings (-) -6.545,39 -850.042,28 d) Collateral (-) -3.227.304,03 -1.068.006,72

V. Deposits and cash at bank and in hand A. Demand balances at banks 1.542.265,17 2.024.479,85

VI. Accruals and deferrals A. Expense to be carried forward 3.067,22 B. Accrued income 308.575,84 158.254,62 C. Accrued expense (-) -262.170,33 -189.797,71

TOTAL SHAREHOLDERS' EQUITY 214.961.290,23 133.073.757,97

A. Capital 143.798.033,44 85.110.287,72

B. Income equalization 263.246,25 -180.812,06

C. Profit(Loss) carried forward 47.908.533,10 44.408.731,04

D. Result for the period 22.991.477,44 3.735.551,27

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 3.227.304,03 1.068.006,72

IX Financial instruments lent 2.644.443,18 1.144.974,80

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments b) Other debt instruments b1 With embedded derivative financial

instruments 34.016,36

C. Shares and similar instruments a) Shares 27.000.072,52 -1.014.041,70 b) Closed-end undertakings for collective

investment 27.878,94 49.562,56

D. Other securities 3.304,84 191.358,58 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -4.800.435,50 4.331.048,94

II. Investment income and expenses A. Dividends 3.848.412,40 2.349.388,74 B. Interests a) Securities and money market instruments 60.109,46 58.547,40 b) Cash at bank and in hand and deposits 3.499,43 6.406,16 C. Interest on borrowings (-) -2.857,95 -5.378,28

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

583.032,84 29.143,66

B. Other 15.695,44

IV. Operating expenses A. Investment transaction and delivery costs (-) -630.431,17 -366.106,86 B. Financial expenses (-) -2.693,30 -5.885,96 C. Custodian's fee (-) -107.763,46 -80.917,47 D. Manager's fee (-) a) Financial management Classic Shares -1.002.098,34 -1.504.233,31 Institutional B Shares -1.590.730,69 -64.336,39 b) Administration and accounting management -184.085,91 -123.422,05 E. Administrative expenses (-) -142,99 -151,75 F. Formation and organisation expenses (-) -13.417,64 -11.159,19 G. Remuneration, social security charges and

pension -12,48 -22,96

H. Services and sundry goods (-) -27.653,57 -21.997,31 J. Taxes Classic Shares -56.323,91 -96.402,75 Institutional B Shares -18.137,86 27.355,61 K. Other expenses (-) -98.048,22 -62.916,20

Income and expenditure for the period Subtotal II + III + IV 760.656,64 143.606,53

V. Profit (loss) on ordinary activities before tax 22.991.477,44 3.735.551,27

VII. Result for the period 22.991.477,44 3.735.551,27

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 71.163.256,79 47.963.470,25 Profit (loss) brought forward from the previous

financial year 47.908.533,10 44.408.731,04

Profit for the period available for appropriation 22.991.477,44 3.735.551,27 Income on the creation of shares (income on the

cancellation of shares) 263.246,25 -180.812,06

II. (Appropriations to) Deductions from capital -71.104.790,83

III. Profit (loss) to be carried forward 47.908.533,10

IV. (Dividends to be paid out) -58.465,96 -54.937,15

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND PHARMA

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

COCHLEAR LTD - 5.991,00 AUD 79,100 373.169,62 0,18 0,17

CSL LIMITED - 52.949,00 AUD 53,900 2.247.382,55 1,05 1,05

RAMSAY HEALTH CARE LTD - 15.503,00 AUD 27,280 333.035,55 0,16 0,16

SONIC HEALTHCARE LTD - 42.127,00 AUD 13,330 442.202,46 0,21 0,21

Belgium

ABLYNX - 231.552,00 EUR 5,850 1.354.579,20 0,64 0,63

DEVGEN STRIP-VVPR 16.690,00 EUR 0,000 1,67

GALAPAGOS GENOMICS NV - 59.601,00 EUR 15,810 942.291,81 0,44 0,44

THROMBOGENICS NV - 28.878,00 EUR 42,050 1.214.319,90 0,57 0,57

THROMBOGENICS NV STRIP-VVPR 199.040,00 EUR 0,002 398,08

U.C.B. - 18.074,00 EUR 43,220 781.158,28 0,37 0,36

Bermuda

COVIDIEN LTD - 60.651,00 USD 57,740 2.656.241,46 1,24 1,24

Brazil

AMIL PARTICIPACOES SA - 9.244,00 BRL 30,850 105.640,82 0,05 0,05

DIAGNOSTICOS DA AMERICA - 25.200,00 BRL 13,190 123.129,47 0,06 0,06

ODONTOPREV SA - 29.664,00 BRL 10,730 117.908,77 0,06 0,06

China

SHANDONG WEIGAO GP MEDICAL-H - 144.000,00 HKD 7,710 108.647,87 0,05 0,05

SIHUAN PHARMACEUTICAL HOLDINGS - 214.000,00 HKD 3,400 71.202,79 0,03 0,03

SINOPHARM GROUP CO - 84.800,00 HKD 24,250 201.238,91 0,09 0,09

Denmark

NOVO NORDISK A/S "B" 49.506,00 DKK 916,500 6.081.255,73 2,85 2,83

France

ESSILOR (PAR) 18.576,00 EUR 76,020 1.412.147,52 0,66 0,66

IPSEN - 38.710,00 EUR 22,775 881.620,25 0,41 0,41

SANOFI - 116.267,00 EUR 71,390 8.300.301,13 3,89 3,86

STALLERGENES (PAR) 14.009,00 EUR 43,000 602.387,00 0,28 0,28

Germany

BAYER AG - 96.085,00 EUR 71,890 6.907.550,65 3,24 3,21

CELESIO AG (FRA) 7.309,00 EUR 13,045 95.345,91 0,05 0,04

DRAEGERWERK AG PREF 6.436,00 EUR 76,520 492.482,72 0,23 0,23

FRESENIUS MEDICAL CARE AG & CO - 19.390,00 EUR 52,310 1.014.290,90 0,48 0,47

FRESENIUS SE & CO KGAA (FRA) 17.177,00 EUR 87,100 1.496.116,70 0,70 0,70

GERRESHEIMER AG - 25.138,00 EUR 40,095 1.007.908,11 0,47 0,47

Hong Kong

SHANGAI PHARMACEUTICALS HOLDING - 52.700,00 HKD 14,800 76.326,73 0,04 0,04

Hungary

GEDEON RICHTER - 1.458,00 HUF 36.210,000 181.286,24 0,09 0,08

India

CIPLA LTD - 21.949,00 INR 414,250 125.871,78 0,06 0,06

DR REDDY'S LABORATORIES LTD. - 6.810,00 INR 1.829,750 172.500,35 0,08 0,08

LUPIN LTD - 9.608,00 INR 613,850 81.648,15 0,04 0,04

PIRAMAL ENTERPRISES LTD - 4.608,00 INR 521,900 33.292,84 0,02 0,02

RANBAXY LABORATORIES LTD - 9.264,00 INR 503,000 64.508,61 0,03 0,03

SUN PHARMACEUTICAL INDS LTD - 20.203,00 INR 736,250 205.917,04 0,10 0,10

Israel

TEVA PHARMA ADR 9.133,00 USD 37,340 258.666,73 0,12 0,12

Japan

ALFRESA HOLDINGS CORP - 5.000,00 JPY 3.370,000 147.807,02 0,07 0,07

ASTELLAS PHARMA INC - 49.231,00 JPY 3.875,000 1.673.422,15 0,78 0,78

CHUGAI PHARMACEUTICAL CO LTD - 24.523,00 JPY 1.651,000 355.153,27 0,17 0,17

DAIICHI SANKYO COMPANY LTD - 80.790,00 JPY 1.322,000 936.880,53 0,44 0,44

DAINIPPON SUMITOMO PHARMA CO L - 17.100,00 JPY 1.035,000 155.250,00 0,07 0,07

EISAI CO. - 29.300,00 JPY 3.600,000 925.263,16 0,43 0,43

HISAMITSU PHARM. - 7.100,00 JPY 4.290,000 267.184,21 0,13 0,12

KYOWA HAKKO KOGYO - 31.000,00 JPY 849,000 230.868,42 0,11 0,11

MEDICEO PALTAC HOLD CO LTD - 18.200,00 JPY 955,000 152.464,91 0,07 0,07

MIRACA HOLDINGS INC - 6.400,00 JPY 3.475,000 195.087,72 0,09 0,09

OLYMPUS CORP - 27.400,00 JPY 1.665,000 400.184,21 0,19 0,19

ONO PHARMACEUTICAL CO LTD - 9.700,00 JPY 4.405,000 374.811,40 0,18 0,17

OTSUKA HOLDINGS CO LTD - 39.900,00 JPY 2.434,000 851.900,00 0,40 0,40

SANTEN PHARMACEUTICAL CO LTD - 8.400,00 JPY 3.315,000 244.263,16 0,11 0,11

SHIONOGI & CO - 28.300,00 JPY 1.437,000 356.728,95 0,17 0,17

SUZUKEN CO LTD - 8.400,00 JPY 2.429,000 178.978,95 0,08 0,08

SYSMEX CORP - 7.900,00 JPY 3.965,000 274.767,54 0,13 0,13

TAISHO PHARM. - 4.100,00 JPY 5.920,000 212.912,28 0,10 0,10

TAKEDA PHARMACEUTICAL CO LTD - 89.370,00 JPY 3.855,000 3.022.117,11 1,42 1,41

TANABE SEIYAKU CO LTD - 25.500,00 JPY 1.126,000 251.868,42 0,12 0,12

TERUMO CORP. - 18.200,00 JPY 3.405,000 543.605,26 0,26 0,25

TSUMURA & CO - 6.400,00 JPY 2.610,000 146.526,32 0,07 0,07

Jersey/The Channel Islands

SHIRE LTD - 58.259,00 GBP 18,870 1.355.378,29 0,64 0,63

Norway

ALGETA ASA - 41.785,00 NOK 154,800 881.578,53 0,41 0,41

South Africa

ASPEN PHARMA CARE HOLD LTD - 28.942,00 ZAR 169,000 437.268,50 0,21 0,20

LIFE HEALTHCARE GROUP HOLDINGS - 109.948,00 ZAR 34,000 334.194,43 0,16 0,16

NETWORK HEALTCARE HOLD TLD - 96.985,00 ZAR 19,650 170.372,73 0,08 0,08

South Korea

CELLTRION INC - 14.816,00 KRW 26.100,000 273.971,87 0,13 0,13

YUHAN CORPORATION - 664,00 KRW 173.000,000 81.385,81 0,04 0,04

Spain

GRIFOLS SA - 11.546,00 EUR 26,360 304.352,56 0,14 0,14

Sweden

GETINGE AB B 28.162,00 SEK 220,000 722.371,98 0,34 0,34

Switzerland

ACTELION LTD - 58.174,00 CHF 43,530 2.098.371,08 0,98 0,98

LONZA AG - 5.176,00 CHF 49,360 211.706,46 0,10 0,10

NOVARTIS AG REG 195.184,00 CHF 57,450 9.291.780,58 4,35 4,32

ROCHE HOLDING GENOTS 40.706,00 CHF 184,000 6.206.416,97 2,91 2,89

U.K.

ASTRAZENECA PLC - 86.933,00 GBP 29,095 3.118.377,06 1,46 1,45

GLAXOSMITHKLINE PLC - 511.160,00 GBP 13,350 8.413.248,67 3,94 3,91

U.S.A.

ABBOTT LAB. - 187.468,00 USD 65,500 9.313.678,70 4,36 4,33

AETNA INC NEW 38.066,00 USD 46,300 1.336.814,17 0,63 0,62

AGILENT TECHNOLOGIES - 44.464,00 USD 40,940 1.380.731,31 0,65 0,64

ALLERGAN INC. - 34.769,00 USD 91,730 2.419.114,36 1,13 1,13

AMERISOURCEBERGEN CORP - 38.525,00 USD 43,180 1.261.763,88 0,59 0,59

AMGEN - 20.167,00 USD 86,320 1.320.400,06 0,62 0,61

BAXTER INTL INC - 65.234,00 USD 66,660 3.298.314,96 1,55 1,53

BIOGEN IDEC INC - 48.763,00 USD 146,670 5.424.809,78 2,54 2,52

BIOMARIN PHARMACEUTICAL INC - 23.165,00 USD 49,250 865.349,10 0,41 0,40

BOSTON SCIENTIFIC - 328.363,00 USD 5,730 1.427.123,78 0,67 0,66

BRISTOL-MYERS SQUIBB CO - 107.674,00 USD 32,590 2.661.632,02 1,25 1,24

CARDINAL HEALTH INC - 55.352,00 USD 41,180 1.728.910,32 0,81 0,80

CELGENE CORPORATION - 22.701,00 USD 78,720 1.355.448,06 0,64 0,63

CERNER CORP - 14.609,00 USD 77,640 860.317,63 0,40 0,40

CIGNA CORP. - 15.451,00 USD 53,460 626.524,92 0,29 0,29

CORCEPT THERAPEUTICS INC - 6.555,00 USD 1,430 7.109,87 0,00 0,00

COVANCE INC - 32.965,00 USD 57,770 1.444.469,09 0,68 0,67

CUBIST PHARMACEUTICALS INC - 74.718,00 USD 42,060 2.383.676,49 1,12 1,11

EXPRESS SCRIPTS INC. "A" 107.887,00 USD 54,000 4.418.915,35 2,07 2,06

FOREST LABORATORIES "A" 29.665,00 USD 35,320 794.726,79 0,37 0,37

GILEAD SCIENCES - 124.660,00 USD 73,450 6.944.991,66 3,25 3,23

HEALTH MANAGEMENT ASSOCIATES INC. "A" 66.842,00 USD 9,320 472.517,78 0,22 0,22

HOLOGIC INC - 30.954,00 USD 20,030 470.273,53 0,22 0,22

HOSPIRA INC. - 39.066,00 USD 31,240 925.684,04 0,43 0,43

HUMANA INC. - 29.393,00 USD 68,630 1.530.067,95 0,72 0,71

ILLUMINA INC - 46.859,00 USD 55,590 1.975.797,79 0,93 0,92

INTUITIVE SURGICAL INC - 4.520,00 USD 490,370 1.681.183,56 0,79 0,78

JOHNSON & JOHNSON - 311.228,00 USD 70,100 16.548.151,40 7,75 7,70

LABORATORY CORP OF AMERICA HOLDINGS - 12.460,00 USD 86,620 818.632,58 0,38 0,38

MCKESSON CORP - 28.687,00 USD 96,960 2.109.747,82 0,99 0,98

MEDTRONIC INC - 22.711,00 USD 41,020 706.618,04 0,33 0,33

MERCK & CO - 384.037,00 USD 40,940 11.925.420,80 5,59 5,55

NPS PHARMACEUTICALS INC - 91.697,00 USD 9,100 632.920,74 0,30 0,29

OMNICARE INC - 37.355,00 USD 36,100 1.022.842,46 0,48 0,48

PFIZER - 845.109,00 USD 25,080 16.076.557,74 7,53 7,48

REGENRON PHARMACEUTICALS - 28.870,00 USD 171,070 3.746.048,92 1,76 1,74

SALIX PHARMACEUTICALS - 34.995,00 USD 40,480 1.074.482,40 0,50 0,50

ST JUDE MEDICAL INC. - 29.669,00 USD 36,140 813.287,06 0,38 0,38

STRYKER CORPORATION - 38.892,00 USD 54,820 1.617.156,74 0,76 0,75

UNITEDHEALTH GROUP INC. - 137.851,00 USD 54,240 5.671.297,21 2,66 2,64

VALEANT PHARMACEUTICALS INTERN - 560,00 USD 59,770 25.387,74 0,01 0,01

WATERS CORP - 10.504,00 USD 87,120 694.105,34 0,33 0,32

WATSON PHARMACEUTICALS INC - 25.048,00 USD 86,000 1.633.895,63 0,77 0,76

WELLPOINT INC - 46.024,00 USD 60,920 2.126.655,10 1,00 0,99

ZIMMER HOLDINGS INC. - 21.218,00 USD 66,660 1.072.809,38 0,50 0,50

Unlisted shares

U.S.A.

ALTEA THERAPEUTICS - 344.827,00 USD 0,725 189.623,46 0,09 0,09

METABOLEX PREF B1 477.806,00 USD 0,733 265.467,91 0,12 0,12

Total shares 213.464.250,23 100,00 99,30

Rights

Spain

GRIFOLS SA CP 11/12/12 10.950,00 EUR 0,898 9.833,10 0,01 0,01

Total rights 9.833,10 0,01 0,01

TOTAL SECURITIES PORTFOLIO 213.474.083,33 100,00 99,31

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 3.227.304,03 EUR 1,000 3.227.304,03 1,50

TOTAL RECEIVED COLLATERAL 3.227.304,03 1,50

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD -326,31 AUD 1,000 -256,96

KBC GROUP CAD 0,35 CAD 1,000 0,27

KBC GROUP CHF 13.084,40 CHF 1,000 10.842,23 0,01

KBC GROUP CZK 5,38 CZK 1,000 0,21

KBC GROUP DKK -8.374,82 DKK 1,000 -1.122,48 0,00

KBC GROUP EURO 1.434.111,57 EUR 1,000 1.434.111,57 0,67

KBC GROUP GBP -2.481,62 GBP 1,000 -3.059,57 0,00

KBC GROUP HKD -3.446,89 HKD 1,000 -337,31

KBC GROUP HUF -3.911,65 HUF 1,000 -13,43

KBC GROUP JPY -160.853,00 JPY 1,000 -1.410,99 0,00

KBC GROUP NOK -1.655,86 NOK 1,000 -225,68

KBC GROUP NZD 544,11 NZD 1,000 340,47

KBC GROUP SEK -1.020,39 SEK 1,000 -118,97

KBC GROUP USD 121.864,06 USD 1,000 92.433,30 0,04

KBC GROUP ZAR 50.751,31 ZAR 1,000 4.537,12 0,00

Total demand accounts 1.535.719,78 0,71

TOTAL CASH AT BANK AND IN HAND 1.535.719,78 0,71

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 9.770,36 EUR 1,000 9.770,36 0,01

KBC GROUP WHT TO BE RECOVERED EUR 4.934,50 EUR 1,000 4.934,50 0,00

Total receivables 14.704,86 0,01

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -3.227.304,03 EUR 1,000 -3.227.304,03 -1,50

KBC GROUP EUR PAYABLE -109.623,25 EUR 1,000 -109.623,25 -0,05

Payables -3.336.927,28 -1,55

TOTAL RECEIVABLES AND PAYABLES -3.322.222,42 -1,55

OTHER

Interest receivable EUR 302.044,46 0,14

Accrued interest EUR 6.531,38 0,00

Expenses payable EUR -262.170,33 -0,12

TOTAL OTHER 46.405,51 0,02

TOTAL NET ASSETS 214.961.290,23 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 0,00 0,32 1,28 1,59 Belgium 2,44 2,99 1,47 2,01 Bermuda 1,62 1,82 1,12 1,24 Brazil 0,00 0,87 0,16 0,16 Canada 0,00 0,40 0,24 0,00 Switzerland 12,16 11,53 8,99 8,34 China 0,00 0,00 0,18 0,18 Germany 7,29 7,53 4,21 5,16 Denmark 5,16 2,76 3,24 2,85 Spain 0,00 0,72 0,13 0,15 France 3,72 5,64 4,85 5,24 U.K. 7,57 9,48 5,18 5,40 Hong Kong 0,00 0,00 0,02 0,04 Hungary 1,19 0,12 0,09 0,08 India 0,00 0,00 0,33 0,32 Indonesia 0,00 0,00 0,07 0,00 Israel 3,07 1,42 0,47 0,12 Italy 0,00 0,00 0,09 0,00 Jersey/The Channel Islands 0,98 1,59 0,79 0,63 Japan 3,11 2,38 5,63 5,57 South Korea 0,00 0,00 0,15 0,17 Norway 0,00 0,85 0,46 0,41 Sweden 0,86 0,00 0,40 0,34 U.S.A. 50,83 49,58 60,07 59,56 South Africa 0,00 0,00 0,38 0,44 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 6,97 4,48 3,21 3,81 Pharma 93,03 94,91 95,67 95,54 Technology 0,00 0,61 1,12 0,65 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 0,00 0,32 1,28 1,58 BRL 0,00 0,87 0,16 0,16 CAD 0,00 0,40 0,24 0,00 CHF 11,97 11,44 8,96 8,29 DKK 5,07 2,74 3,23 2,83 EUR 14,82 17,48 10,56 13,10 GBP 8,41 10,98 5,95 5,99 HKD 0,00 0,00 0,20 0,21 HUF 1,18 0,12 0,09 0,08 IDR 0,00 0,00 0,07 0,00 INR 0,00 0,00 0,33 0,32 JPY 3,03 2,36 5,61 5,54 KRW 0,00 0,00 0,15 0,17 NOK 0,00 0,84 0,46 0,41 SEK 0,85 0,00 0,40 0,34 USD 54,67 52,45 61,93 60,54 ZAR 0,00 0,00 0,38 0,44 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND PHARMA (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 217.381.569,52 126.891.781,41 344.273.350,93 Sales 180.077.988,08 105.424.973,79 285.502.961,87 Total 1 397.459.557,60 232.316.755,20 629.776.312,80 Subscriptions 110.788.640,55 92.832.286,10 203.620.926,65 Redemptions 73.596.739,67 71.128.670,33 144.725.410,00 Total 2 184.385.380,22 163.960.956,43 348.346.336,65 Monthly average of total assets

151.031.944,60 222.724.662,20 186.878.303,39

Turnover rate 141,08 % 30,69 % 150,60 %

1st half of year 2nd half of year YearPurchases 217.381.569,52 126.891.781,41 344.273.350,93 Sales 180.077.988,08 105.424.973,79 285.502.961,87 Total 1 397.459.557,60 232.316.755,20 629.776.312,80 Subscriptions 110.788.640,55 92.832.286,10 203.620.926,65 Redemptions 73.596.739,67 71.128.670,33 144.725.410,00 Total 2 184.385.380,22 163.960.956,43 348.346.336,65 Monthly average of total assets

149.946.641,37 217.596.609,05 184.022.948,86

Corrected turnover rate 142,10 % 31,41 % 152,93 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 3.227.304,03 3.227.304,03 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 112.277,74 1.203,00 286.024,21 6.072,00 153.393,19 25.093,83 178.487,01

2011 - 12 146.698,59 525,00 207.987,74 4.159,00 92.104,03 21.459,83 113.563,86

2012 - 12 17.199,84 389,55 31.036,51 4.277,25 78.267,36 17.572,12 95.839,48

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 65.338.581,59 620.696,57 166.679.583,93 3.173.961,04

2011 - 12 89.645.168,04 285.768,23 122.725.067,49 2.252.370,65

2012 - 12 12.313.505,14 248.281,30 22.037.896,53 2.704.752,79

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 107.960.744,47 613,90 549,62

2011 - 12 71.929.874,67 646,77 575,93

2012 - 12 70.062.310,40 746,54 661,98

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 96.423,00 1.981,00 94.442,00 94.442,00

2012 - 12 268.488,52 169.019,72 193.910,80 193.910,80

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 57.719.013,38 1.220.322,15

2012 - 12 191.971.942,13 120.843.471,01

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 61.143.883,29 647,42

2012 - 12 144.898.979,82 747,25

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0166584350 EUR 14.33% 9.45% 4.09% 0.0301 27/02/1998 2.73%

DIV BE0166585365 EUR 14.33% 9.47% 4.10% 0.03 27/02/1998 2.72%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228903488 EUR 14.33% 25/11/2011 25.42%

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. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 2.50 EUR net (3.33 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.661% Classic Shares Capitalization: 1.667% Institutional B Shares Capitalization: 1.662% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 66,575 41,822 62.82%

CSFBSAS 64,586 38,617 59.79%

DEUTSCHE 6,654 3,632 54.58%

EQ CSA MACQUARIE 4,271 2,441 57.14%

HSBC 12,352 6,543 52.97%

JP MORGAN 19,904 11,058 55.56%

MERRILL 6,117 3,771 61.66%

MORGAN STANLEY 118,340 71,601 60.50%

NOMURA 62,129 36,493 58.74%

SOCGEN 1,247 623 50.00%

UBSWDR 49,522 26,601 53.72%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 55.079,39 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

GEDEON RICHTER HUF 1.382 36210,000 171.836,48

HISAMITSU PHARMACEUTICAL CO.INC JPY 200 4290,000 7.526,32

LIFE HEALTHCARE GROUP HOLDING LTD ZAR 72.841 34,000 221.405,17

ROCHE HOLDING AG -GEN- CHF 12.500 184,000 1.905.866,76

SHIONOGI CY JPY 26.799 1437,000 337.808,45

Total 2.644.443,18

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 500.000 EUR 535.005,50

GERMANY 12/13 0,00% 28/08 EUR 2.031.000 EUR 2.031.162,48

FRANCE 2003 2,25% 25/07/2020 EUR 62.000 EUR 90.213,29

OAT FRANCE 2003 4% 25/04/14 EUR 236.000 EUR 254.812,27

FRANCE 2004 1,60% 25/07/2015 EUR 246.000 EUR 316.110,49

Total 3.227.304,03 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Telecom

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND TELECOM

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 30 April 1998 Initial subscription price: 20000 BEF Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 235.62 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of companies in the telecommunication sector where conditions are such as to allow accelerated economic growth in the short or medium term.

RISK CONCENTRATION Shares in the telecommunication sector.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. In Europe the debt crisis continued to rage unabated. Five euro countries needed a bail-out from the European emergency funds. Greece twice reached an agreement during the year with its private sector creditors concerning a rescheduling of its bond debts in their hands. Spain came into the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. Although more jobs have in fact been created than lost in the US since 2010, the rate of employment growth has remained on the low side. And wages increased very little: Household purchasing power consequently rose to only a limited extent and provided little support for economic growth, which remained extremely lacklustre (+2.1% y-o-y in the first three quarters of 2012).

In the EMU real GDP shrank by 0.3% y-o-y. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany fulfilled its traditional role as locomotive of the European economy to a lesser extent than in the recent past. Greater divergence within Europe resulted in a further decline in unemployment in Germany and an alarmingly rapid rise in unemployment in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. The weak growth in the Old World was also not without its consequences for the export performance of the growth countries. Over the past few years, however, domestic demand (due to a rapidly growing middle class with a high consumption ratio) and inter-regional trade within Asia have played an increasingly important role. The region is better armed to deal with financial crises than it was in the past. Public finances are healthy, the balance of payments is generally neutral (China actually has an astronomical surplus) and the domestic savings buffer is high. Asia’s economic development no longer depends on fickle foreign capital. Thanks to the contribution by the New World the growth of world GDP held up in 2012 (estimated at 2-2.5%). Telecoms – traditionally regarded as a defensive sector – performed less well than the wider market. In 2011 the sector was still in favour with investors on account of the high and stable dividend paid by telecom companies. The auction for new licences only attracted rather modest interest, so they could be obtained at a reasonable price. As a result, telecoms was one of the better performing sectors in 2011. It was however far from all moonshine and roses. Anyone who took a close look at the quarterly figures for Europe’s telecom sector quickly spotted several worrying trends. 2012 was the year in which these trends became clearly confirmed. Pricing pressure and government regulation weighed on the sector and were insufficiently compensated for by price elasticity. Broadband (internet via DSL) had virtually ceased to grow and was, moreover, experiencing intense competition from the cable sector. The fund was and is overweight in cable companies at the expense of traditional telecom operators. Mobile data traffic remains the sector’s only growth driver. The increasing popularity of smartphones and tablets offered operators the opportunity to sell additional data packages to their customers. That was good news for the operators: the sector had finally discovered a promising new product category. These positive effects were particularly discernible among the US operators. In the case of a European colleagues, mobile Internet proved to be a double-edged sword for the sector. First of all, applications like ‘WhatsApp’ (messenger service for smartphones) enabled consumers to reduce their telecom bills by using mobile internet services to communicate instead of ‘traditional’ mobile phone and text messaging services. Revenues from mobile data packages were not therefore simply an add-on to those generated by conventional telephony (speech and text messages). Operators responded by offering more bundled products, thereby limiting the risk to some extent. A second effect of smartphones was the sharp rise in subsidies offered by operators. This weighed on the sector’s margins. What’s more, growth in internet traffic is stronger than the growth in revenues generated through mobile data services. This can lead over time to extra investment in the underlying infrastructure, which could in turn depress sector cash flows. The effects of the negative factors as described above began to weigh on cash flows and it rapidly became clear that the generous dividend policy was no longer sustainable. Telefonica, Telecom Austria, France Telecom, Telecom Italia, KPN… all had to cut their dividends. This eliminated the most important reason for being overweight in the sector, namely a high and stable dividend. Investors accordingly left the sector to one side in 2012. The strongest performances were recorded by the smaller operators that are acting as price-cutters. Jazztel in Spain and Iliad in France performed equally as well as the cable companies (Ziggo, Telenet, Kabel Deutschland). In Asia the growing use of smart phones is providing a strong growth engine in such markets as Hong Kong and Taiwan, while the strong growth in disposable income is leading to a growing demand for telecom services in China, India and Thailand.

News in the United States was dominated by AT&T’s possible acquisition of T-Mobile USA, which would have consolidated the market down to three major players: AT&T, Verizon and Sprint. The deal was blocked, however, by the US government. Subsequently T-Mobile USA sought a merger with the smaller MetroPcs. Verizon strengthened its position by buying up spectrum from the US cable sector and then signing a far-reaching collaboration agreement with the same cable companies.

2.1.8 FUTURE POLICY The US and European barometers measuring confidence among business leaders peaked in spring 2011 at record levels but have slipped over the past 18 months. In the US they have ended up in the twilight zone between recession and expansion. In Europe they are below freezing point. We are expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as jobs growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. In Europe the budgetary plans, the banks' tighter lending policy and the high level of uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could still see a further contraction in European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. Economic growth in Europe will remain below par. There is a greater need for budgetary reform in Europe than in the US, while monetary policy is less aggressive and banks' lending policy more restrictive. The euro crisis has led the European banks to adopt a tough stance on lending. In contrast, real wage rises (however limited) will be somewhat higher in Europe than in the US. Today's world is at any event one of two speeds. The mature industrialised economies (US, Europe, Japan) still find themselves in a low-growth environment, with no underlying inflationary pressure, persistently low interest rates and runaway public finances. The picture in the New World is altogether different. The strong economic growth has already created inflationary pressure in Asia. Monetary policy consequently has to steer a more cautious course, alternating between restrictive (as in 2011) and expansionary (as at present). Monetary policy in China and elsewhere in Asia is therefore highly alert to and aimed at the avoidance of asset inflation. Not just interest rates are being used for this purpose; there is also active intervention in the credit market and the currency market. This cautious policy is bearing fruit. The rate of increase in the money supply in China has already slowed considerably, to match the rate of nominal GDP growth. Inflation has fallen from 6.5% in September 2011 to 2.1% in November 2012. The risk of overheating therefore appears under control. During a period in which a change in leadership of the Chinese Communist Party will be installed, little will be left to chance and economic growth will be barely lower than in previous years. One of the major challenges for this decade will be the further development of consumption in China and the rest of Asia. That could help bring about a more balanced economic world order: it will not only reduce the region’s dependence on exports but, at least as importantly, will have an effect on international capital flows. More consumption in China will mean lower savings and higher imports, including from the US. That will help the West to ‘grow out’ of its debt problems. Within the fund we are more positive about telecommunications equipment (25% of the fund) than Telecom operators (75% of the fund). We remain wary about the telecom sector in 2013. The sector may be cheaply priced, but we do not see any reason for a revaluation. All the structural problems discussed above have certainly not yet been resolved. Particularly in the case of mobile operators we do not see any signs of improvement. In the case of fixed line telephony there appears to be a relaxation of the regulations for the first time in years on condition that the operators invest in optical fibre. This will in due course provide room for price increases, but capital investment will need to rise first. We will start to see this effect from 2013 onwards. We continue to regard the cable sector as a better alternative with superior growth prospects.

In the United States, we prefer infrastructure companies to the telecom operators. We identify two attractive segments within the telecom infrastructure segment: operators of mobile phone masts (tower companies) and data centre operators. Both segments offer excellent visibility (long-term contracts) and recurring income. What’s more, both segments possess sufficient pricing power to impose annual price increases. We are less positive about the traditional telecom operators (such as AT&T and Verizon) on account of their higher valuation. We are negative toward the Latin American telecoms market because of tighter regulation and increased price competition. Asia is the strongest growth market. The most attractive markets are China (a combination of strong growth and low prices) and Thailand (absence of domestic competition). Our preference within the technology component of our portfolio (telecom equipment, approximately 25% of the portfolio) is for companies focusing on data centre gear (cloud computing). We are more positive about capital spending by telecom operators in 2013. The stiff price pressure and growing competition from China are however throwing a spoke in the wheel. The market for smartphones appears increasingly concentrated around Samsung Electronics and Apple. We are once again expecting a strong year for smartphones and tablets in 2013.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 77.593.118,68 139.250.205,96

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 2.473.425,29 5.288.853,79 C. Shares and similar instruments a) Shares 75.010.707,55 137.024.802,32 Of which securities lent 2.278.684,89 5.667.688,12

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 4.841,68 1.276.824,94 b) Tax assets 9.483,55 9.672,25 B. Payables a) Accounts payable (-) -59.693,01 -1.432.407,52 c) Borrowings (-) -331.575,39 d) Collateral (-) -2.473.425,29 -5.288.853,79

V. Deposits and cash at bank and in hand A. Demand balances at banks 2.574.228,20 2.066.552,30

VI. Accruals and deferrals A. Expense to be carried forward 2.607,18 B. Accrued income 175.215,06 913.889,26 C. Accrued expense (-) -121.664,36 -280.159,38

TOTAL SHAREHOLDERS' EQUITY 77.593.118,68 139.250.205,96

A. Capital 66.723.983,66 132.537.578,44

B. Income equalization 670.384,72 -2.175.451,14

C. Profit(Loss) carried forward 6.409.472,30 13.705.112,05

D. Result for the period 3.789.278,00 -4.817.033,39

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 2.473.425,29 5.288.853,79

IX Financial instruments lent 2.278.684,89 5.667.688,12

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 7.427.619,68 -13.417.105,39 D. Other securities -832.426,00 G. Receivables, deposits, cash at bank and in hand

and payables 0,01

H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -4.317.888,67 6.586.526,81

II. Investment income and expenses A. Dividends 1.795.333,56 5.329.417,41 B. Interests a) Securities and money market instruments 47.984,15 48.605,92 b) Cash at bank and in hand and deposits 4.231,40 14.588,46 C. Interest on borrowings (-) -5.545,68 -6.967,83

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

444.486,52 43.942,27

B. Other 3.652,01

IV. Operating expenses A. Investment transaction and delivery costs (-) -318.842,67 -445.771,37 B. Financial expenses (-) -1.430,13 -8.259,66 C. Custodian's fee (-) -111.921,88 -63.480,18 D. Manager's fee (-) a) Financial management Classic Shares -274.790,82 -1.548.069,25 Institutional B Shares -730.487,92 -112.925,53 b) Administration and accounting management -70.320,62 -126.467,38 E. Administrative expenses (-) -301,35 -104,72 F. Formation and organisation expenses (-) -7.580,53 -99.243,29 G. Remuneration, social security charges and

pension -29,04

H. Services and sundry goods (-) -14.441,85 -32.382,70 J. Taxes Classic Shares -11.481,28 -100.700,38 Institutional B Shares -7.574,90 53.599,92 K. Other expenses (-) -57.769,01 -103.433,48

Income and expenditure for the period Subtotal II + III + IV 679.546,99 2.845.971,18

V. Profit (loss) on ordinary activities before tax 3.789.278,00 -4.817.033,39

VII. Result for the period 3.789.278,00 -4.817.033,39

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 10.869.135,02 6.712.627,52 Profit (loss) brought forward from the previous

financial year 6.409.472,30 13.705.112,05

Profit for the period available for appropriation 3.789.278,00 -4.817.033,39 Income on the creation of shares (income on the

cancellation of shares) 670.384,72 -2.175.451,14

II. (Appropriations to) Deductions from capital -10.826.472,32

III. Profit (loss) to be carried forward 6.409.472,30

IV. (Dividends to be paid out) -42.662,70 -303.155,22

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND TELECOM

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

TELSTRA CORP - 170.691,00 AUD 4,370 587.384,57 0,78 0,76

Belgium

BELGACOM - 12.000,00 EUR 22,205 266.460,00 0,36 0,34

Canada

BCE INC - 12.028,00 CAD 42,630 390.609,92 0,52 0,50

ROGERS COMM. "B" 23.164,00 CAD 45,160 796.896,66 1,06 1,03

TELUS CORP "A" 13.699,00 CAD 64,680 674.983,87 0,90 0,87

Cayman Islands

JU TENG INTERNATIONAL HOLDINGS LTD - 5.000,00 HKD 3,660 1.790,83 0,00 0,00

TENCENT HOLDINGS - 4.600,00 HKD 249,000 112.088,62 0,15 0,14

China

BYD CO LTD - 600,00 HKD 23,250 1.365,14 0,00 0,00

CHINA TELECOM CORP LTD - 11.291,00 USD 56,850 486.872,99 0,65 0,63

Egypt

ORASCOM TELECOM HOLDING -GDR- 51.332,00 USD 3,138 122.178,26 0,16 0,16

Finland

NOKIA "A" 240.000,00 EUR 2,926 702.240,00 0,94 0,91

France

FRANCE TELECOM - 111.996,00 EUR 8,339 933.934,64 1,25 1,20

ILIAD SA - 4.559,00 EUR 130,050 592.897,95 0,79 0,76

VIVENDI - 91.759,00 EUR 16,950 1.555.315,05 2,07 2,00

Germany

DEUTSCHE TELEKOM INT FIN REG 199.509,00 EUR 8,595 1.714.779,86 2,29 2,21

KABEL DEUTSCHLAND HOLDING AG - 9.238,00 EUR 56,570 522.593,66 0,70 0,67

TELEFONICA DEUTSCHLAND HOLDING - 78.000,00 EUR 5,819 453.882,00 0,61 0,59

Hong Kong

CHINA MOBILE LTD. - 247.700,00 HKD 90,250 2.187.648,62 2,92 2,82

CHINA MOBILE LTD. - 30.110,00 USD 58,720 1.341.064,32 1,79 1,73

CHINA UNICOM HONG KONG LTD - 327.000,00 HKD 12,420 397.441,94 0,53 0,51

HKT TRUST /HKT LTD - 303,00 HKD 7,570 224,46

PCCW LTD - 683.000,00 HKD 3,400 227.250,04 0,30 0,29

India

BHARTI AIRTEL LTD - 13.343,00 INR 317,100 58.573,46 0,08 0,08

IDEA CELLULAR LTD - 31.120,00 INR 103,800 44.718,59 0,06 0,06

RELIANCE COMMUNICATION LTD - 10.000,00 INR 73,900 10.230,47 0,01 0,01

Indonesia

TELEKOMUNIKASI INDONESIA - 16.041,00 USD 36,950 449.571,41 0,60 0,58

XL AXIATA TBK PT - 169.212,00 IDR 5.700,000 75.909,08 0,10 0,10

Italy

TELECOM ITALIA (MIL) DI RISPARMIO NWE 1.099.428,00 EUR 0,598 656.908,23 0,88 0,85

Japan

KDDI CORPORATION - 16.600,00 JPY 6.090,000 886.789,47 1,18 1,14

NIPPON TEL & TEL - 29.800,00 JPY 3.630,000 948.894,74 1,27 1,22

NTT DOCOMO, INC. - 601,00 JPY 124.000,000 653.719,30 0,87 0,84

NTT DOCOMO, INC. SP ADR 34.981,00 USD 14,410 382.339,36 0,51 0,49

SOFTBANK CORP - 60.900,00 JPY 3.140,000 1.677.421,05 2,24 2,16

Malaysia

AXIATA GROUP BERHAD - 183.100,00 MYR 6,590 299.285,41 0,40 0,39

DIGI.COM BHD - 126.900,00 MYR 5,290 166.505,69 0,22 0,22

Mexico

AMERICA MOVIL S.A. DE C.V. ADR "L" 129.072,00 USD 23,140 2.265.417,23 3,02 2,92

Netherlands

INTERXION HOLDINGS NV - 36.367,00 USD 23,760 655.400,42 0,87 0,85

YANDEX NV - 13.343,00 USD 21,570 218.301,36 0,29 0,28

ZIGGO BV - 11.885,00 EUR 24,760 294.272,60 0,39 0,38

New Zealand

TELECOM CORP NEW ZEAL NZL REGD 101.139,00 NZD 2,275 143.977,99 0,19 0,19

Norway

TELENOR A/S - 81.091,00 NOK 112,200 1.240.038,46 1,65 1,60

Philippines

PHILIPPINE LONG DISTANCE TELEPHONE - 1.879,00 USD 61,310 87.379,77 0,12 0,11

Portugal

PORTUGAL TELECOM INT FIN - 30.792,00 EUR 3,749 115.439,21 0,15 0,15

Russia

AFK SISTEMA - 6.621,00 USD 20,200 101.444,33 0,14 0,13

MAIL.RU GROUP LTD - 5.440,00 USD 34,500 142.354,37 0,19 0,18

MOBILE TELESYSTEMS ADR 35.050,00 USD 18,650 495.815,00 0,66 0,64

ROSTELECOM SPON ADR NEW 7.710,00 USD 23,880 139.650,18 0,19 0,18

Singapore

SINGAPORE TELECOM - 267.982,00 SGD 3,300 549.109,34 0,73 0,71

South Africa

MTN GROUP LTD. - 107.460,00 ZAR 177,600 1.706.171,75 2,28 2,20

South Korea

SAMSUNG ELECTRONICS - 494,00 KRW 1.522.000,000 532.691,91 0,71 0,69

Spain

TELEFONICA SA - 258.155,00 EUR 10,190 2.630.599,45 3,51 3,39

Sweden

ERICSSON "B" 193.371,00 SEK 65,100 1.467.732,97 1,96 1,89

TELIASONERA AB - 94.139,00 SEK 44,060 483.602,78 0,65 0,62

Switzerland

SWISSCOM AG - 1.500,00 CHF 393,800 489.476,30 0,65 0,63

Taiwan

FAR EASTONE TELECOMMUNICATIONS - 331.000,00 TWD 74,100 640.645,16 0,85 0,83

HTC CORPORATION - 557,00 TWD 300,500 4.371,91 0,01 0,01

MEDIATEK INCORPORATION - 933,00 TWD 323,500 7.883,65 0,01 0,01

TAIWAN CELLULAR CORP - 70.000,00 TWD 107,000 195.637,98 0,26 0,25

Thailand

ADVANCED INFO SERVICE PUBLIC CO LTD LOCAL 109.500,00 THB 209,000 567.457,40 0,76 0,73

Turkey

TURKCELL ILETISIM HIZMETERI A.S. ADR 23.902,00 USD 16,140 292.610,95 0,39 0,38

U.K.

BT GROUP PLC - 411.769,00 GBP 2,311 1.173.219,28 1,56 1,51

SPIRENT COMMUNICATIONS PLC - 47.215,00 GBP 1,507 87.724,08 0,12 0,11

VODAFONE GROUP PLC - 3.197.474,00 GBP 1,545 6.088.643,32 8,12 7,85

U.S.A.

AT&T INC - 287.999,00 USD 33,710 7.363.809,38 9,82 9,49

CENTURYLINK INC - 34.850,00 USD 39,120 1.034.080,70 1,38 1,33

CISCO SYSTEMS INC - 352.774,00 USD 19,650 5.257.895,25 7,01 6,78

COMCAST CORP -A- 11.598,00 USD 37,380 328.832,86 0,44 0,42

CROWN CASTLE INTL CORP - 23.151,00 USD 72,160 1.267.123,91 1,69 1,63

EQUINIX INC - 2.802,00 USD 206,200 438.237,56 0,58 0,57

FAIRPOINT COMMUNICATIONS INC - 4.546,00 USD 0,005 15,52

F5 NETWORKS INC - 4.259,00 USD 97,150 313.836,35 0,42 0,40

IDEARC INC - 8.819,00 USD 0,003 22,07

LEVEL 3 COMMUNICATIONS INC - 4.658,00 USD 23,110 81.649,26 0,11 0,11

LIBERTY GLOBAL INC A 10.264,00 USD 62,990 490.389,38 0,65 0,63

MOTOROLA SOLUTIONS INC - 15.915,00 USD 55,680 672.138,35 0,90 0,87

QUALCOMM CORP - 113.826,00 USD 62,020 5.354.587,77 7,14 6,90

SANDISK CORP - 8.417,00 USD 43,560 278.098,09 0,37 0,36

SBA COMMUNICATIONS CORP. - 21.123,00 USD 71,020 1.137.860,63 1,52 1,47

SPRINT NEXTEL CORP - 397.843,00 USD 5,670 1.710.990,45 2,28 2,21

VERIZON COMMUNICATIONS INC - 185.353,00 USD 43,270 6.083.301,21 8,11 7,84

Total shares 75.010.707,55 100,00 96,67

TOTAL SECURITIES PORTFOLIO 75.010.707,55 100,00 96,67

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 2.473.425,29 EUR 1,000 2.473.425,29 3,19

TOTAL RECEIVED COLLATERAL 2.473.425,29 3,19

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 43.228,08 AUD 1,000 34.040,54 0,04

KBC GROUP CAD 79.637,11 CAD 1,000 60.666,65 0,08

KBC GROUP CHF 6.204,87 CHF 1,000 5.141,59 0,01

KBC GROUP CZK 1,97 CZK 1,000 0,08

KBC GROUP DKK 5.805,44 DKK 1,000 778,10 0,00

KBC GROUP EURO 1.565.935,67 EUR 1,000 1.565.935,67 2,02

KBC GROUP GBP 14.396,75 GBP 1,000 17.749,66 0,02

KBC GROUP HKD 6.066.192,09 HKD 1,000 593.636,38 0,77

KBC GROUP HUF 138.254,82 HUF 1,000 474,74 0,00

KBC GROUP JPY 7.433.704,00 JPY 1,000 65.207,93 0,08

KBC GROUP NOK 253.010,90 NOK 1,000 34.483,30 0,04

KBC GROUP NZD 4.270,00 NZD 1,000 2.671,92 0,00

KBC GROUP PLN 1.409,41 PLN 1,000 345,42

KBC GROUP SEK 150.947,31 SEK 1,000 17.599,49 0,02

KBC GROUP SGD 5.193,07 SGD 1,000 3.224,51 0,00

KBC GROUP USD 222.475,07 USD 1,000 168.746,26 0,22

KBC GROUP ZAR 39.440,66 ZAR 1,000 3.525,96 0,01

Total demand accounts 2.574.228,20 3,32

TOTAL CASH AT BANK AND IN HAND 2.574.228,20 3,32

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 4.841,68 EUR 1,000 4.841,68 0,01

KBC GROUP WHT TO BE RECOVERED EUR 9.483,55 EUR 1,000 9.483,55 0,01

Total receivables 14.325,23 0,02

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -2.473.425,29 EUR 1,000 -2.473.425,29 -3,19

KBC GROUP EUR PAYABLE -59.693,01 EUR 1,000 -59.693,01 -0,08

Payables -2.533.118,30 -3,27

TOTAL RECEIVABLES AND PAYABLES -2.518.793,07 -3,25

OTHER

Interest receivable EUR 170.534,02 0,22

Accrued interest EUR 4.681,04 0,01

Expenses payable EUR -121.664,36 -0,16

TOTAL OTHER 53.550,70 0,07

TOTAL NET ASSETS 77.593.118,68 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 0,84 1,03 1,10 0,78 Austria 0,00 0,25 0,00 0,00 Belgium 0,56 0,00 0,00 0,36 Brazil 0,51 1,04 0,93 0,00 Canada 2,34 3,25 2,19 2,48 Switzerland 0,99 0,00 0,00 0,65 China 1,06 0,72 0,00 0,65 Cayman Islands 0,52 0,00 0,00 0,15 Germany 4,81 2,02 1,23 3,59 Egypt 0,04 0,03 0,22 0,16 Spain 3,80 3,90 2,36 3,51 Finland 0,00 0,78 0,00 0,94 France 2,04 4,19 4,53 4,11 U.K. 11,16 11,37 12,40 9,80 Hong Kong 3,09 5,49 6,14 5,54 India 0,01 0,51 0,23 0,15 Indonesia 0,69 0,53 0,78 0,70 Israel 0,08 0,00 0,00 0,00 Italy 0,42 0,96 1,61 0,88 Japan 6,00 6,28 6,61 6,06 South Korea 0,39 0,51 0,96 0,71 Luxembourg 1,07 0,82 0,81 0,00 Mexico 2,98 2,21 3,43 3,02 Malaysia 1,46 0,23 0,60 0,62 Netherlands 1,57 1,16 2,06 1,56 Norway 0,86 0,76 0,93 1,65 New Zealand 0,00 0,24 0,34 0,19 Philippines 0,05 0,06 0,13 0,12 Portugal 0,00 0,00 0,00 0,15 Russia 0,35 0,80 1,23 1,17 Singapore 1,21 1,67 1,72 0,73 Sweden 4,63 2,84 3,07 2,60 Thailand 0,35 0,55 0,75 0,76 Turkey 0,13 0,00 0,00 0,39 Taiwan 1,86 1,76 1,76 1,13 U.S.A. 41,43 41,55 39,77 42,42 South Africa 2,70 2,49 2,11 2,27 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Consum(cycl) 4,32 2,49 2,59 4,05 Cons.goods 0,00 0,00 0,18 0,00 Technology 27,74 23,32 19,03 23,06 Telecomm. 67,94 73,66 77,79 72,02 Utilities 0,00 0,53 0,41 0,26 Various 0,00 0,00 0,00 0,61 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 0,91 1,06 1,09 0,80 BRL 0,00 0,58 0,00 0,00 CAD 2,44 2,93 2,17 2,48 CHF 0,97 0,01 0,00 0,64 DKK 0,01 0,00 0,00 0,00 EUR 14,16 13,73 9,74 15,42 GBP 10,45 11,58 12,54 9,50 HKD 2,92 2,61 6,06 4,54 IDR 0,29 0,05 0,19 0,10 INR 0,01 0,51 0,22 0,15 JPY 5,52 5,81 6,55 5,46 KRW 0,14 0,50 0,94 0,69 MYR 1,41 0,23 0,59 0,60 NOK 0,84 0,76 0,92 1,64 NZD 0,00 0,24 0,33 0,19 SEK 4,48 3,64 3,83 2,54 SGD 0,97 1,18 1,48 0,71 THB 0,61 1,05 0,97 0,73 TWD 1,29 0,86 1,73 1,09 USD 49,80 50,21 48,57 50,52 ZAR 2,78 2,46 2,08 2,20 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND TELECOM (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 51.077.273,05 59.467.822,79 110.545.095,84 Sales 148.149.308,26 26.978.356,70 175.127.664,96 Total 1 199.226.581,31 86.446.179,48 285.672.760,80 Subscriptions 62.402.153,38 66.355.167,07 128.757.320,45 Redemptions 161.641.261,34 32.866.082,23 194.507.343,57 Total 2 224.043.414,72 99.221.249,30 323.264.664,02 Monthly average of total assets

72.494.780,07 72.648.505,17 72.571.642,62

Turnover rate -34,23 % -17,58 % -51,80 %

1st half of year 2nd half of year YearPurchases 51.077.273,05 59.467.822,79 110.545.095,84 Sales 148.149.308,26 26.978.356,70 175.127.664,96 Total 1 199.226.581,31 86.446.179,48 285.672.760,80 Subscriptions 62.402.153,38 66.355.167,07 128.757.320,45 Redemptions 161.641.261,34 32.866.082,23 194.507.343,57 Total 2 224.043.414,72 99.221.249,30 323.264.664,02 Monthly average of total assets

82.626.380,58 94.665.207,97 98.220.424,91

Corrected turnover rate -30,04 % -13,50 % -38,27 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 2.473.425,29 2.473.425,29 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 281.956,60 128,51 175.407,36 1.539,00 298.389,75 8.003,51 306.393,26

2011 - 12 912.206,60 84.507,25 1.126.608,10 22.659,32 83.988,26 69.851,43 153.839,69

2012 - 12 39.203,75 2.183,55 78.360,94 59.679,36 44.831,06 12.355,62 57.186,68

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 68.314.368,65 23.599,17 41.053.959,25 296.523,46

2011 - 12 193.384.426,42 12.542.932,96 273.279.002,66 4.953.905,89

2012 - 12 11.017.029,85 448.204,27 21.072.011,66 12.400.448,14

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 78.933.279,22 258,90 209,83

2011 - 12 35.470.677,13 254,10 202,27

2012 - 12 15.067.485,52 276,65 215,68

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 426.268,00 18.290,00 407.978,00 407.978,00

2012 - 12 433.041,25 615.230,12 225.789,12 225.789,12

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 103.999.184,96 4.526.088,99

2012 - 12 118.430.353,45 161.799.587,55

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 103.779.528,82 254,38

2012 - 12 62.525.633,16 276,92

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0167421966 EUR 7.98% 6.74% -2.77% 0.024 30/04/1998 -3.95%

DIV BE0167422972 EUR 7.99% 6.75% -2.77% 0.024 30/04/1998 -3.96%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228908537 EUR 7.97% 25/11/2011 14.94%

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. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 2.59 EUR net (3.45 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.773% Classic Shares Capitalization: 1.865% Institutional B Shares Capitalization: 1.773% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 50,329 31,021 61.64%

CSFBSAS 26,250 15,046 57.32%

DEUTSCHE 2,550 1,439 56.42%

EQ CSA MACQUARIE 2,283 1,409 61.73%

HSBC 326 173 53.13%

JP MORGAN 7,383 4,153 56.25%

MERRILL 23,718 13,937 58.76%

MORGAN STANLEY 17,721 10,174 57.41%

NOMURA 44,656 26,385 59.09%

SOCGEN 440 195 44.44%

UBSWDR 37,944 22,890 60.33%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 51.749,85 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

BYD CO LTD -H- HKD 599 23,250 1.362,87

CHINA UNICOM HONG KONG LTD HKD 326.999 12,420 397.440,73

PCCW LTD HKD 682.999 3,400 227.249,71

SOFTBANK CORP JPY 60.000 3140,000 1.652.631,58

Total 2.278.684,89

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

GERMANY 12/13 0,00% 28/08 EUR 1.798.000 EUR 1.798.143,84

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 1.000 EUR 1.221,80

FRANCE - 04/55 4.00 % 25/04 EUR 550.000 EUR 674.059,65

Total 2.473.425,29 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund US Small Caps

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND US SMALL CAPS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 31 July 1998 Initial subscription price: 500 USD Currency: USD Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 853.66 USD Currency: USD

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of American companies that are not included in the S&P 500, since conditions in America are such as to ensure accelerated economic growth in the short or medium term.

RISK CONCENTRATION American shares not included in the S&P 500.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. The debt crisis in Europe continued to rage unabated. Five euro countries have already needed a bailout from the European emergency fund. Greece twice reached an agreement during the year with its private sector creditors on restructuring the bond debt it owes them. Spain found itself in the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. Although more jobs have been created than lost in the US since 2010, the rate of employment growth has remained on the low side. Pay also increased very little. Household purchasing power consequently hardly rose and provided little support for economic growth, which remained extremely lacklustre (+2.1% y-o-y in the first three quarters of 2012).

On top of that, the budgetary debate became mired in a total political impasse. The divisions between Republicans and Democrats are considerable and are ideologically driven. Aware of their inability to work out a policy and fearful that the stalemate could lead to an uncontrolled explosion in debt, the parties have passed automatic spending cuts into legislation to reduce the budget deficit to 3% of GDP over a period of ten years. The concrete measures to this end are damaging the priorities of Democrats and Republicans alike. In extremis the retiring Congress decided on New Year's Day to delay automatic spending cuts until 1 March 2013. As far as the performance of the market was concerned, the initial phase of the economic recovery went hand in hand with a fine stock-market rally, resulting in the S&P 500 being 75% higher at the end of April 2010 than its low point on 9 March 2009. Since then, the equity markets have struggled to find fresh impetus. Of the traditional markets, Western Europe (MSCI Europe return index up +18.4% over this period) managed to claw back some of the underperformance that has built up since the start of the euro crisis in autumn 2009. Nevertheless the problems continued to mount in the EMU: they include the Greek debt restructuring, the threat of an extremist separatist party winning the Greek elections, the undercapitalisation of Spanish banks, the referendum in Ireland, and the financial collapse in Cyprus. Evidently the underperformance of European shares over many years has increased the valuation gap with US shares to such an extent that fresh events in the euro crisis have less impact on the trading floor. Wall Street closed the year substantially higher on balance (S&P500: +13.4%, Dow Jones: +7.3%), while European investors also benefited from a small increase in the value of the dollar (return MSCI USA in euros: +13,9%). The index for smaller shares – the S&P 600 – did just a little better at 14.8%, denominated in USD.

2.1.8 FUTURE POLICY The US and European barometers measuring confidence among business leaders peaked in spring 2011 at record levels, but have slipped over the past 18 months. In the US they have ended up in the twilight zone between recession and expansion. In Europe they are below freezing point. We are consequently expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as jobs growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. The foundations for more sustainable growth in 2013 and beyond have however been laid in recent years. US households have trimmed back their debt level significantly, the savings rate has already increased considerably and loan servicing (instalments and interest payments combined) now accounts for only 10% of household budgets (the lowest level in fifteen years – it was at 14% three years ago). Households are gradually moving towards a position where they can spend more of their money on consumption. The explosive growth in earnings between 2009 and 2012 bolstered companies’ already substantial cash positions. Investments were scaled back considerably during the crisis, with the foundations being laid for a catch-up process. After much squabbling between the Democrats and Republicans a compromise was after all reached on New Year's Day concerning the most urgent budgetary issues. The agreement creates certainty as to households’ tax position, while the budget deficit is being reduced sharply by a mix of tax increases and spending cuts. The agreement is however insufficient to restore US federal finances to sound health. Further measures are in the offing and a fresh programme of cuts may be expected as early as spring 2013. While that may be regarded as certain, how far the cuts go, what form they take and over what timeframe they will be spread out will need to become clear in the coming months. Lastly, the Fed is continuing to make unprecedented cash injections with its programme for purchasing government bonds and other debt paper. In doing so it wants to avert the risk that the banks will focus unduly on their solvency by insisting on overly strict lending conditions and so undermine economic growth. These cash injections will either find their way into the real economy or generate inflationary expectations. In any case they will keep long rates low and banish any fears of deflation. Our optimism concerning the US market is tempered by the current profit margins which, at least in a historical context, are already at a high level.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 18.362.058,67 19.293.388,63

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 92.520,29 105.263,43 C. Shares and similar instruments a) Shares 18.251.585,59 19.376.490,36

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 20.521,08 283,05 B. Payables a) Accounts payable (-) -54.520,48 -111.706,18 c) Borrowings (-) -80.075,65

V. Deposits and cash at bank and in hand A. Demand balances at banks 63.334,50 9.064,70

VI. Accruals and deferrals A. Expense to be carried forward 225,08 B. Accrued income 6.540,42 15.238,23 C. Accrued expense (-) -17.922,73 -21.394,39

TOTAL SHAREHOLDERS' EQUITY 18.362.058,67 19.293.388,63

A. Capital 15.492.363,76 -19.229.458,64

B. Income equalization 5.317,61 34.882,94

C. Profit(Loss) carried forward 38.232.474,57

D. Result for the period 2.864.377,30 255.489,76

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -14.296,95 5.353,35 C. Shares and similar instruments a) Shares 2.883.388,85 418.934,34 F. Derivative financial instruments l) Financial indices Futures and forward contracts -7.677,00 9.125,00 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 19.936,79 13.833,19

II. Investment income and expenses A. Dividends 280.346,90 215.715,34 B. Interests a) Securities and money market instruments 21.208,97 -2.035,48 b) Cash at bank and in hand and deposits 78,35 175,60 C. Interest on borrowings (-) -857,25 -2.287,63

III. Other income B. Other 14.028,38

IV. Operating expenses A. Investment transaction and delivery costs (-) -2.931,34 -25.302,69 B. Financial expenses (-) -556,02 -2.023,33 C. Custodian's fee (-) -15.496,89 -19.723,42 D. Manager's fee (-) a) Financial management Classic Shares -268.971,86 -317.062,55 b) Administration and accounting management -19.097,07 -23.303,14 E. Administrative expenses (-) -31,38 F. Formation and organisation expenses (-) -1.768,77 -2.633,96 G. Remuneration, social security charges and

pension -5,49

H. Services and sundry goods (-) -4.485,52 -4.590,80 J. Taxes Classic Shares -1.846,49 -15.369,37 K. Other expenses (-) -2.597,40 -7.306,20

Income and expenditure for the period Subtotal II + III + IV -16.974,39 -191.756,12

V. Profit (loss) on ordinary activities before tax 2.864.377,30 255.489,76

VII. Result for the period 2.864.377,30 255.489,76

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 2.869.694,91 38.522.847,27 Profit (loss) brought forward from the previous

financial year 38.232.474,57

Profit for the period available for appropriation 2.864.377,30 255.489,76 Income on the creation of shares (income on the

cancellation of shares) 5.317,61 34.882,94

II. (Appropriations to) Deductions from capital -2.869.694,91

III. Profit (loss) to be carried forward 38.522.847,27

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND US SMALL CAPS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Bonds issued by credit institutions

U.S.A.

GAMCO INVESTORS INC 31/12/2015 7.400,00 USD 91,308 6.756,79 0,04 0,04

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 109.000,00 EUR 59,680 85.763,50 0,47 0,47

Total bonds 92.520,29 0,50 0,50

Shares

Exchange-listed shares

France

COMPAGNIE GENERALE DE GEOPHYSIQUE SA ADR 22,00 USD 30,520 671,44 0,00 0,00

U.K.

CSR PLC ADR 718,00 USD 21,658 15.550,30 0,09 0,09

U.S.A.

ADMINISTAFF INC. - 2.334,00 USD 32,560 75.995,04 0,41 0,41

ADVENT SOFTWARE - 1.668,00 USD 21,380 35.661,84 0,19 0,19

ALASKA AIR GROUP INC - 1.578,00 USD 43,090 67.996,02 0,37 0,37

ALIGN TECHNOLOGY INC - 4.597,00 USD 27,750 127.566,75 0,70 0,70

AMERICAN SCIENCE & ENGINEERING - 1.912,00 USD 65,210 124.681,52 0,68 0,68

AMERICAN STATES WATER CO - 957,00 USD 47,980 45.916,86 0,25 0,25

ANIXTER INTERNATIONAL INC. - 1.261,00 USD 63,980 80.678,78 0,44 0,44

APARTMENT INVT & MGMT CIE - 1.356,00 USD 27,060 36.693,36 0,20 0,20

ARTHROCARE CORP - 2.059,00 USD 34,590 71.220,81 0,39 0,39

ASCENA RETAIL GROUP INC - 5.874,00 USD 18,490 108.610,26 0,59 0,59

ATWOOD OCEANICS INC - 2.871,00 USD 45,790 131.463,09 0,72 0,72

BADGER METER INC - 3.535,00 USD 47,410 167.594,35 0,91 0,91

BIOMED REALTY TRUST INC - 3.038,00 USD 19,330 58.724,54 0,32 0,32

BUCKEYE TECHNOLOGIES INC - 1.297,00 USD 28,710 37.236,87 0,20 0,20

BUFFALO WILD WINGS INC - 1.601,00 USD 72,820 116.584,82 0,64 0,64

CABOT MICROELECTRONIS CORP - 2.625,00 USD 35,510 93.213,75 0,51 0,51

CAL-MAINE FOODS INC - 3.209,00 USD 40,220 129.065,98 0,70 0,70

CALAVO GROWERS INC - 5.133,00 USD 25,210 129.402,93 0,71 0,71

CALGON CARBON CORP - 2.518,00 USD 14,180 35.705,24 0,20 0,19

CAPELLA EDUCATION CO - 2.200,00 USD 28,230 62.106,00 0,34 0,34

CASEY'S GENERAL STORES INC - 2.650,00 USD 53,100 140.715,00 0,77 0,77

CH ENERGY GROUP INC. - 2.202,00 USD 65,220 143.614,44 0,78 0,78

CHAMPION ENTERPRISES INC. - 1.444,00 USD 0,007 10,11

CHEMED CORPORATION - 1.444,00 USD 68,590 99.043,96 0,54 0,54

CHILDREN'S PLACE - 2.788,00 USD 44,290 123.480,52 0,67 0,67

CHURCHILL DOWNS INC - 2.251,00 USD 66,450 149.578,95 0,82 0,82

CLEVELAND-CLIFFS INC - 786,00 USD 38,560 30.308,16 0,17 0,17

COGNEX CORP - 3.824,00 USD 36,820 140.799,68 0,77 0,77

COLONIAL PROPERTIES TRUST - 3.659,00 USD 21,370 78.192,83 0,43 0,43

COOPER COMPANY INC (THE) - 1.657,00 USD 92,480 153.239,36 0,84 0,84

CORRECTIONS CORPORATION OF AMERICA I - 4.392,00 USD 35,470 155.784,24 0,85 0,85

CORVEL CORP - 2.876,00 USD 44,830 128.931,08 0,70 0,70

CROCS IN - 1.075,00 USD 14,390 15.469,25 0,08 0,08

CSG SYSTEMS INTL INC - 2.519,00 USD 18,180 45.795,42 0,25 0,25

CUBIC CORP - 2.182,00 USD 47,970 104.670,54 0,57 0,57

DARLING INTERNATIONAL INC - 3.149,00 USD 16,040 50.509,96 0,28 0,28

DECKERS OUTDOOR CORP - 1.654,00 USD 40,270 66.606,58 0,36 0,36

DEVRY INC - 1.242,00 USD 23,730 29.472,66 0,16 0,16

DIME COMMUNITY BANCSHARES - 4.276,00 USD 13,890 59.393,64 0,32 0,32

DIODES INC - 1.383,00 USD 17,350 23.995,05 0,13 0,13

DSP GROUP INC - 10.956,00 USD 5,760 63.106,56 0,34 0,34

EAST WEST BANCORP - 5.340,00 USD 21,490 114.756,60 0,63 0,63

EL PASO ELECTRIC CO - 4.322,00 USD 31,910 137.915,02 0,75 0,75

EPIQ SYSTEMS ICN - 3.020,00 USD 12,780 38.595,60 0,21 0,21

EPR PROPERTIES - 2.442,00 USD 46,110 112.600,62 0,61 0,61

ESTERLINE TECHNOLOGIES CORP - 2.246,00 USD 63,610 142.868,06 0,78 0,78

EXPRESS SCRIPTS INC. "A" 831,00 USD 54,000 44.874,00 0,25 0,24

EXTRA SPACE STORAGE INC - 5.097,00 USD 36,390 185.479,83 1,01 1,01

FAIRCHILD SEMICONDUCTOR INTL - 2.045,00 USD 14,400 29.448,00 0,16 0,16

FIRST CASH FINANCIAL SERVICES - 1.535,00 USD 49,620 76.166,70 0,42 0,42

FIRST FINANCIAL BANKSHARES INC - 2.415,00 USD 39,010 94.209,15 0,51 0,51

FOSSIL INC - 976,00 USD 93,100 90.865,60 0,50 0,50

F5 NETWORKS INC - 764,00 USD 97,150 74.222,60 0,41 0,40

GAMCO INVESTORS INC "A" 2.338,00 USD 53,070 124.077,66 0,68 0,68

GENERAL CABLE CORP - 3.521,00 USD 30,410 107.073,61 0,58 0,58

GULFMARK OFFSHORE INC - 3.788,00 USD 34,450 130.496,60 0,71 0,71

H.B. FULLER - 2.744,00 USD 34,820 95.546,08 0,52 0,52

HANGER INC - 5.295,00 USD 27,360 144.871,20 0,79 0,79

HANMI FINANCIAL CORP - 6.391,00 USD 13,590 86.853,69 0,47 0,47

HAVERTY FURNITURE CO - 2.810,00 USD 16,310 45.831,10 0,25 0,25

HIBBETT SPORTS INC - 2.751,00 USD 52,700 144.977,70 0,79 0,79

HOLLY CORPORATION - 4.002,00 USD 46,550 186.293,10 1,02 1,02

HOME PROPERTIES INC - 1.265,00 USD 61,310 77.557,15 0,42 0,42

HSN INC - 2.755,00 USD 55,080 151.745,40 0,83 0,83

HUB GROUP INC -A- 3.355,00 USD 33,600 112.728,00 0,62 0,61

HURON CONSULTING GROUP INC - 4.081,00 USD 33,690 137.488,89 0,75 0,75

INFINITY PROPERTY & CASUALTY C - 2.261,00 USD 58,240 131.680,64 0,72 0,72

INSITUFORM TECHN. CORP. - 1.516,00 USD 22,190 33.640,04 0,18 0,18

INVESTORS BANCORP INC - 6.486,00 USD 17,780 115.321,08 0,63 0,63

IPC THE HOSPITALIST CO INC - 2.476,00 USD 39,710 98.321,96 0,54 0,54

J&J SNACK FOODS CORP - 2.259,00 USD 63,940 144.440,46 0,79 0,79

JAKKS PACIFIC INC - 1.446,00 USD 12,520 18.103,92 0,10 0,10

JEFFERIES GROUP INC - 2.927,00 USD 18,570 54.354,39 0,30 0,30

JONES LANG LASALLE INC - 494,00 USD 83,940 41.466,36 0,23 0,23

KILROY REALTY CORP - 3.043,00 USD 47,370 144.146,91 0,79 0,79

KINDRED HEALTHCARE INC - 2.371,00 USD 10,820 25.654,22 0,14 0,14

LAM RESEARCH CORP - 2.869,00 USD 36,130 103.656,97 0,57 0,57

LANCE INC - 3.815,00 USD 24,110 91.979,65 0,50 0,50

LASALLE HOTEL PROPERTIES - 5.084,00 USD 25,390 129.082,76 0,70 0,70

LAYNE CHRISTENSEN COMPANY - 1.910,00 USD 24,270 46.355,70 0,25 0,25

LEGGETT & PLATT, INC. - 4.578,00 USD 27,220 124.613,16 0,68 0,68

LHC GROUP INC - 3.439,00 USD 21,300 73.250,70 0,40 0,40

LIFE TECHNOLOGIES CORP - 2.331,00 USD 49,030 114.288,93 0,62 0,62

LIFEPOINT HOSPITALS INC - 2.949,00 USD 37,750 111.324,75 0,61 0,61

LINDSAY MANUFACTURING CO - 1.915,00 USD 80,120 153.429,80 0,84 0,84

LITTELFUSE INC - 1.884,00 USD 61,710 116.261,64 0,63 0,63

LYDALL INC - 6.911,00 USD 14,340 99.103,74 0,54 0,54

M/I HOMES INC - 6.198,00 USD 26,500 164.247,00 0,90 0,89

MAGELLAN HEALTH SERVICES INC - 2.640,00 USD 49,000 129.360,00 0,71 0,70

MAIDENFORM BRANDS INC - 2.086,00 USD 19,490 40.656,14 0,22 0,22

MATERION CORP - 4.823,00 USD 25,780 124.336,94 0,68 0,68

MEADWESTVACO CORP - 2.796,00 USD 31,870 89.108,52 0,49 0,49

MERCURY SYSTEMS INC - 6.465,00 USD 9,200 59.478,00 0,32 0,32

MID AMERICA APARTMENT COMMUNITIES - 1.105,00 USD 64,750 71.548,75 0,39 0,39

MINERALS TECHNOLOGIES INC - 3.076,00 USD 39,920 122.793,92 0,67 0,67

MOVADO GROUP - 1.720,00 USD 30,680 52.769,60 0,29 0,29

MTS SYSTEMS CORP - 1.051,00 USD 50,930 53.527,43 0,29 0,29

MWI VETERINARY SUPPLY INC - 1.135,00 USD 110,000 124.850,00 0,68 0,68

NASDAQ OMX GROUP INC - 2.402,00 USD 25,010 60.074,02 0,33 0,33

NAVIGANT CONSULTING INC - 4.742,00 USD 11,160 52.920,72 0,29 0,29

NBT BANCORP INC - 4.516,00 USD 20,270 91.539,32 0,50 0,50

NCI BUILDING SYSTEMS INC - 4.610,00 USD 13,900 64.079,00 0,35 0,35

NEENAH PAPER INC - 3.656,00 USD 28,470 104.086,32 0,57 0,57

NETGEAR INC - 3.529,00 USD 39,420 139.113,18 0,76 0,76

NEWPORT CORPORATION - 7.598,00 USD 13,450 102.193,10 0,56 0,56

NORDSON CORP - 2.388,00 USD 63,120 150.730,56 0,82 0,82

NORTHWESTERN CORPORATION - 4.673,00 USD 34,730 162.293,29 0,89 0,88

ONE LIBERTY PROPERTIES INC - 4.559,00 USD 20,290 92.502,11 0,50 0,50

OTTER TAIL CORP - 3.944,00 USD 25,000 98.600,00 0,54 0,54

PAPA JOHNS INTERNATIONAL INC - 3.418,00 USD 54,940 187.784,92 1,02 1,02

PEPBOYS-MANNY,MOE&JACK - 7.302,00 USD 9,830 71.778,66 0,39 0,39

PERFICIENT INC - 6.220,00 USD 11,780 73.271,60 0,40 0,40

PERRIGO COMP - 1.275,00 USD 104,030 132.638,25 0,72 0,72

PETSMART INC - 2.328,00 USD 68,340 159.095,52 0,87 0,87

PIEDMONT NATURAL GAS COMPANY INC - 3.259,00 USD 31,310 102.039,29 0,56 0,56

PIPER JAFFRAY CO - 2.130,00 USD 32,130 68.436,90 0,37 0,37

POLYONE CORP - 5.588,00 USD 20,420 114.106,96 0,62 0,62

POST PROPERTIES INC. - 3.395,00 USD 49,950 169.580,25 0,92 0,92

PROGRESSIVE CORP OH - 1.655,00 USD 20,990 34.738,45 0,19 0,19

PSS WORLD MEDICAL INC - 3.237,00 USD 28,880 93.484,56 0,51 0,51

QAUNEX CORP - 2.911,00 USD 20,410 59.413,51 0,32 0,32

QUAKER CHEMICAL CORP - 1.599,00 USD 53,860 86.122,14 0,47 0,47

REGENRON PHARMACEUTICALS - 967,00 USD 171,070 165.424,69 0,90 0,90

RLI CORP - 2.101,00 USD 64,660 135.850,66 0,74 0,74

ROBBINS & MYERS - 2.875,00 USD 59,450 170.918,75 0,93 0,93

ROCK-TENN COMPANY -A- 2.141,00 USD 69,910 149.677,31 0,82 0,82

ROGERS CORP - 3.412,00 USD 49,660 169.439,92 0,92 0,92

ROSETTA RESOURCES INC - 3.001,00 USD 45,360 136.125,36 0,74 0,74

RUDOLPH TECHNOLOGIES INC - 2.009,00 USD 13,450 27.021,05 0,15 0,15

RYDER SYSTEM INC. - 1.154,00 USD 49,930 57.619,22 0,31 0,31

SALIX PHARMACEUTICALS - 1.342,00 USD 40,480 54.324,16 0,30 0,30

SANDERSON FARMS INC - 2.375,00 USD 47,550 112.931,25 0,62 0,62

SEACOR HOLDINGS INC - 1.664,00 USD 83,800 139.443,20 0,76 0,76

SELECTIVE INSURANCE GROUP - 6.149,00 USD 19,270 118.491,23 0,65 0,65

SHFL ENTERTAINMENT INC - 3.685,00 USD 14,500 53.432,50 0,29 0,29

SHUTTERFLY INC - 2.782,00 USD 29,870 83.098,34 0,45 0,45

SIGNATURE BANK/NEW YORK NY - 2.163,00 USD 71,340 154.308,42 0,84 0,84

SILICON VALLEY BANCSHARES - 2.095,00 USD 55,970 117.257,15 0,64 0,64

SKYWEST INC - 1.798,00 USD 12,460 22.403,08 0,12 0,12

SL GREEN REALTY CORP - 1.176,00 USD 76,650 90.140,40 0,49 0,49

SNAP-ON,INC. - 1.390,00 USD 78,990 109.796,10 0,60 0,60

SOURCEFIRE INC - 2.348,00 USD 47,220 110.872,56 0,60 0,60

SOUTHWEST GAS CORP - 3.459,00 USD 42,410 146.696,19 0,80 0,80

STAGE STORES INC - 6.745,00 USD 24,780 167.141,10 0,91 0,91

STAMPS.COM INC - 4.992,00 USD 25,200 125.798,40 0,69 0,69

STONE ENERGY CORP. - 6.740,00 USD 20,520 138.304,80 0,75 0,75

STURM RUGER & CO INC - 3.759,00 USD 45,400 170.658,60 0,93 0,93

SUNPOWER CORP -A- 173,00 USD 5,620 972,26 0,01 0,01

SUNSTONE HOTEL INVESTORS INC - 4.642,00 USD 10,710 49.715,82 0,27 0,27

SYNAPTICS INC - 4.637,00 USD 29,970 138.970,89 0,76 0,76

TAKE-TWO INTERACTIVE SOFTWARE - 4.110,00 USD 11,010 45.251,10 0,25 0,25

TANGER FACTORY OUTLET CENTERS - 3.536,00 USD 34,200 120.931,20 0,66 0,66

TELEDYNE TECHNOLOGIES INC - 2.386,00 USD 65,070 155.257,02 0,85 0,85

TETRA TECH INC. - 5.068,00 USD 26,450 134.048,60 0,73 0,73

TETRA TECHNOLOGIES INC - 3.354,00 USD 7,590 25.456,86 0,14 0,14

THE TORO COMPANY - 3.952,00 USD 42,980 169.856,96 0,93 0,93

THORATEC CORP - 4.248,00 USD 37,520 159.384,96 0,87 0,87

TREX CO INC - 3.230,00 USD 37,230 120.252,90 0,66 0,66

TRIUMPH GROUP INC - 1.908,00 USD 65,300 124.592,40 0,68 0,68

TRUEBLUE INC - 5.230,00 USD 15,750 82.372,50 0,45 0,45

TYLER TECHNOLOGIES INC - 3.428,00 USD 48,440 166.052,32 0,91 0,90

ULTRATECH INC - 3.903,00 USD 37,300 145.581,90 0,79 0,79

UNIFIRST CORP - 520,00 USD 73,320 38.126,40 0,21 0,21

UNISOURCE ENERGY CORP - 2.805,00 USD 42,420 118.988,10 0,65 0,65

UNITED STATIONERS INC - 2.082,00 USD 30,990 64.521,18 0,35 0,35

UNIVERSAL TECHNICAL INSTITUTE INC - 6.290,00 USD 10,040 63.151,60 0,34 0,34

URS CORP - 1.632,00 USD 39,260 64.072,32 0,35 0,35

USA MOBILITY INC - 5.002,00 USD 11,680 58.423,36 0,32 0,32

VEECO INSTRUMENTS INC - 1.484,00 USD 29,520 43.807,68 0,24 0,24

VICOR CORP - 6.924,00 USD 5,420 37.528,08 0,21 0,20

VIROPHARMA - 5.500,00 USD 22,760 125.180,00 0,68 0,68

VISHAY INTERTECHNOLOGIE INC. - 4.806,00 USD 10,630 51.087,78 0,28 0,28

VISHAY PRECISION GR INC - 577,00 USD 13,220 7.627,94 0,04 0,04

WATERS CORP - 1.329,00 USD 87,120 115.782,48 0,63 0,63

WATTS WATER TECHNOLOGIES INC "A" 4.408,00 USD 42,990 189.499,92 1,03 1,04

WAUSAU-MOSINEE PAPER CORP. - 6.396,00 USD 8,660 55.389,36 0,30 0,30

WEBSTER FINANCIAL CORP - 7.269,00 USD 20,550 149.377,95 0,81 0,81

WEX INC - 2.265,00 USD 75,370 170.713,05 0,93 0,93

WILLIAMS-SONOMA INC - 1.883,00 USD 43,770 82.418,91 0,45 0,45

WORLD ACCES INC. - 1.796,00 USD 74,560 133.909,76 0,73 0,73

WORLD FUEL SERVICES CORP - 3.702,00 USD 41,170 152.411,34 0,83 0,83

WYNN RESORTS LTD - 1.036,00 USD 112,490 116.539,64 0,64 0,64

YAHOO INC. - 2.782,00 USD 19,900 55.361,80 0,30 0,30

ZEBRA TECHNOLOGIES CORP -A- 1.920,00 USD 39,280 75.417,60 0,41 0,41

Total shares 18.251.585,59 99,50 99,40

TOTAL SECURITIES PORTFOLIO 18.344.105,88 100,00 99,90

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CAD 1.131,02 CAD 1,000 1.135,93 0,01

KBC GROUP EURO 2.070,83 EUR 1,000 2.730,18 0,02

KBC GROUP GBP 310,83 GBP 1,000 505,24 0,00

KBC GROUP USD 50.057,47 USD 1,000 50.057,47 0,27

Total demand accounts 54.428,82 0,30

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 1.047,70 EUR 1,000 1.381,29 0,01

KBC GROUP FUT.REK.CHF -0,42 CHF 1,000 -0,46

KBC GROUP USD FUT REK 7.524,85 USD 1,000 7.524,85 0,04

Total managed futures accounts 8.905,68 0,05

TOTAL CASH AT BANK AND IN HAND 63.334,50 0,35

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP USD RECEIVABLE 20.521,08 USD 1,000 20.521,08 0,11

Total receivables 20.521,08 0,11

Payables

Belgium

KBC GROUP USD PAYABLE -54.520,48 USD 1,000 -54.520,48 -0,30

Payables -54.520,48 -0,30

TOTAL RECEIVABLES AND PAYABLES -33.999,40 -0,19

OTHER

Interest receivable USD 6.540,25 0,04

Accrued interest USD 0,17

Expenses payable USD -17.922,73 -0,10

TOTAL OTHER -11.382,31 -0,06

TOTAL NET ASSETS 18.362.058,67 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Canada 0,12 0,00 0,00 0,00 China 0,41 0,42 0,54 0,00 U.K. 0,00 0,00 0,05 0,08 Ireland 0,00 0,51 0,46 0,47 U.S.A. 99,47 99,07 98,95 99,45 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 22,61 21,15 20,22 21,86 Consum(cycl) 16,24 16,17 15,39 15,55 Cons.goods 11,33 11,69 12,22 12,20 Pharma 12,70 13,68 13,08 11,96 Financials 8,99 9,22 9,45 9,83 Technology 15,37 14,46 14,80 13,52 Telecomm. 1,76 1,71 1,44 1,61 Utilities 4,03 4,61 4,72 4,67 Real est. 6,97 7,31 8,68 8,80 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CAD 0,14 0,01 0,01 0,01 EUR -0,25 0,40 0,37 0,49 USD 100,11 99,59 99,62 99,50 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND US SMALL CAPS (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 2.995,06 283.908,16 286.903,22 Sales 1.760.213,89 2.555.853,32 4.316.067,21 Total 1 1.763.208,95 2.839.761,48 4.602.970,43 Subscriptions 2.077.335,45 778.807,96 2.856.143,41 Redemptions 3.497.214,74 3.144.351,01 6.641.565,75 Total 2 5.574.550,19 3.923.158,97 9.497.709,16 Monthly average of total assets

20.253.480,99 18.670.681,57 19.462.081,28

Turnover rate -18,82 % -5,80 % -25,15 %

1st half of year 2nd half of year YearPurchases 2.995,06 283.908,16 286.903,22 Sales 1.760.213,89 2.555.853,32 4.316.067,21 Total 1 1.763.208,95 2.839.761,48 4.602.970,43 Subscriptions 2.077.335,45 778.807,96 2.856.143,41 Redemptions 3.497.214,74 3.144.351,01 6.641.565,75 Total 2 5.574.550,19 3.923.158,97 9.497.709,16 Monthly average of total assets

20.319.567,30 18.721.228,49 19.480.771,83

Corrected turnover rate -18,76 % -5,79 % -25,13 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS Nil

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 78.203,67 3.298,91 221.090,55 32.660,91 22.834,01 6.179,00 29.013,01

2011 - 12 8.297,23 721,55 14.083,72 3.108,98 17.047,53 3.791,57 20.839,10

2012 - 12 2.011,26 807,00 4.921,49 1.659,00 14.137,29 2.939,57 17.076,87

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 60.777.089,45 2.434.028,47 173.444.289,25 23.422.089,43

2011 - 12 8.022.179,94 653.525,47 13.576.835,71 2.837.286,97

2012 - 12 2.062.278,75 775.136,35 5.037.277,16 1.595.845,20

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 26.776.316,14 934,19 881,23

2011 - 12 19.293.388,63 935,51 882,30

2012 - 12 18.362.058,67 1.085,90 1.024,08

Institutional B Shares Change in number of shares in circulation: Nil Amounts received and paid by the UCI: Nil Net asset value: Nil

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0168342476 EUR 14.30% 16.95% 4.34% 0.0539 31/07/1998 4.18%

CAP BE0168342476 USD 16.08% 13.70% 2.21% 0.0782 31/07/1998 5.53%

DIV BE0168341460 EUR 14.29% 16.95% 4.34% 0.0539 31/07/1998 4.18%

DIV BE0168341460 USD 16.07% 13.70% 2.21% 0.0782 31/07/1998 5.52%

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

Institutional B Shares

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

Classic Shares The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in USD and 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.62% Classic Shares Capitalization: 1.613% Institutional B Shares Capitalization: Not applicable * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

EQ CSA MACQUARIE 439 251 57.14%

MERRILL 104 65 62.49%

MORGAN STANLEY 250 135 53.91%

NOMURA 740 407 55.01%

UBSWDR 201 126 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to –0,26 USD. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Food & Personal Products

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND FOOD & PERSONAL PRODUCTS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 26 February 1999 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 887.07 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED The assets are for at least 85% invested in shares of companies chiefly from the 1) food retailing, 2) food, beverages and tobacco and 3) household and personal products sectors. As a result, the entire Consumer Staples sector is considered. The regional allocation may change from time to time. In principle, the sub-fund invests worldwide. No more than 15% of the assets are invested in shares from other sectors and other instruments to the extent that they are permitted under the applicable regulations.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. The debt crisis in Europe continued to rage unabated. Five euro countries requested a bailout from the European emergency fund. Greece reached agreements with its private sector creditors on two occasions in the span of one year on restructuring the bond debt it owes them. Spain found itself in the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. More jobs were in fact created than lost in the US since 2010, but the rate of employment growth remained on the low side. Wages also increased very little. Household purchasing power consequently rose to only a limited extent and provided little support for economic growth, which remained extremely lacklustre (+2.1% y-o-y in the first three quarters of 2012). Real GDP in the EMU contracted by an annualised 0.3%. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany played its traditional role as European economic engine to a lesser extent than in the recent past. Greater divergence within Europe resulted primarily in a further decline in unemployment in Germany and an alarmingly rapid rise in unemployment in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery.

The weak growth in the industrialised Western economies was not without its impact on the export performance in emerging countries. In recent years, however, domestic demand (due to a rapidly growing middle class with a high consumption ratio) and inter-regional trade within Asia have been playing an increasingly important role. The region is better armed to deal with financial crises than it was in the past. Public finances are healthy, the balance of payments is generally neutral (China actually has an astronomical surplus) and the internal savings buffer is high. Asia’s economic development no longer depends on fickle foreign capital. Thanks to the contribution by the ‘new world’ the growth of world GDP held up in 2012 (estimated at 2-2.5%).

2.1.8 FUTURE POLICY The US and European barometers measuring confidence among business leaders peaked in spring 2011 at record levels, but have slipped over the past 18 months. In the US they have ended up in the twilight zone between recession and expansion. In Europe they are below freezing point. We are expecting US growth to remain positive but modest (around 1.5-2% y-o-y in the coming quarters) as job growth remains moderate, pay increases are barely keeping pace with inflation and budgetary policy has now finally (and probably for many years) struck down the path of austerity. The fragile recovery of the housing market and of corporate investment could be sustained. In Europe the budgetary plans, tighter lending policy of the banks and major uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could therefore see a contraction of European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. Economic growth in Europe will remain below par. There is a greater need for budgetary reform in Europe, while monetary policy there is less aggressive and banks' lending policy more restrictive. The euro crisis has led the European banks to adopt a tough stance on lending. In contrast, real wage rises (however limited) will be somewhat higher in Europe than in the US. Today’s world is one of two-speed economies. The mature industrialised economies (US, Europe, Japan) still find themselves in a low-growth environment, with no underlying inflationary pressure, persistently low interest rates and runaway public finances. The picture in the 'new world' is altogether different. The strong economic growth has already created inflationary pressure in Asia. As a result, monetary policy in the region will need to be more cautious, or even restrictive (as in 2011) rather than accommodating (as at present). Monetary policy in China and elsewhere in Asia is therefore primed for adjustment and geared to preventing asset-price inflation. This implies not only adjusting interest rates but also active intervention on the credit and foreign exchange markets. This cautious policy is beginning to bear fruit. In China, the rate of increase in the money supply has already slowed considerably, to match the rate of nominal GDP growth. Inflation fell from 6.5% in September 2011 to 2.1% in November 2012. The risk of overheating therefore appears under control. During a period in which a new leadership of the Chinese Communist Party will be installed, little will be left to chance and economic growth will be barely lower than in previous years. One of the major challenges for this decade will be the further development of consumption in China and the rest of Asia. That could help bring about a more balanced economic world order: it will not only reduce the region’s dependence on exports but, at least as importantly, will have an effect on international capital flows. More consumption in China will mean lower savings and higher imports, including from the US, which will help the West to ‘grow out’ of its debt problems.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 146.183.954,54 88.101.556,60

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 769.872,00 452.160,00 a} Collateral received in the form of bonds 252.249,84 445.956,15 C. Shares and similar instruments a) Shares 145.599.296,69 87.898.165,17 Of which securities lent 233.345,73 741.385,06 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -65.081,72 m) Financial indices Futures and forward contracts (+/-) -11.082,20 7.691,73

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 43.022,77 570.498,74 b) Tax assets 31.713,75 12.541,61 c) Collateral 98.773,62 44.484,72 B. Payables a) Accounts payable (-) -157.637,48 -630.835,72 c) Borrowings (-) -979.369,56 -721.632,14 d) Collateral (-) -252.249,84 -445.956,15

V. Deposits and cash at bank and in hand A. Demand balances at banks 609.852,47 554.677,34

VI. Accruals and deferrals A. Expense to be carried forward 1.638,92 B. Accrued income 382.164,39 126.959,31 C. Accrued expense (-) -202.651,91 -149.711,36

TOTAL SHAREHOLDERS' EQUITY 146.183.954,54 88.101.556,60

A. Capital 102.400.857,57 60.646.382,54

B. Income equalization -207.850,59 -320.511,85

C. Profit(Loss) carried forward 27.431.272,65 23.429.573,53

D. Result for the period 16.559.674,91 4.346.112,38

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 252.249,84 445.956,15

I.A.B Cash at bank and in hand/deposits 98.773,62 44.484,72

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 987.757,71 444.894,14

III.B Written futures and forward contracts -1.001.201,44

IX Financial instruments lent 233.345,75 741.385,06

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -95.298,00 512,00 C. Shares and similar instruments a) Shares 15.488.021,92 2.297.862,03 D. Other securities -1,35 -1.359,96 F. Derivative financial instruments a) Bonds Futures and forward contracts 987.757,71 l) Financial indices Option contracts 34.248,38 Futures and forward contracts -893.675,27 -545.018,26 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts 65.081,72 -65.081,72 b) Other foreign exchange positions and

transactions -541.100,68 2.305.507,94

II. Investment income and expenses A. Dividends 4.094.520,47 1.538.871,51 B. Interests a) Securities and money market instruments 194.232,07 30.835,79 b) Cash at bank and in hand and deposits 13.626,90 3.726,23 C. Interest on borrowings (-) -7.431,63 -8.552,18

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

464.052,59 62.914,67

B. Other 94.299,25

IV. Operating expenses A. Investment transaction and delivery costs (-) -670.623,48 -325.187,87 B. Financial expenses (-) -1.763,30 -3.086,39 C. Custodian's fee (-) -72.369,69 -43.768,06 D. Manager's fee (-) a) Financial management Classic Shares -586.798,07 -760.633,11 Institutional B Shares -1.584.077,48 -63.969,13 b) Administration and accounting management -155.822,96 -64.089,60 E. Administrative expenses (-) -83,43 -151,31 F. Formation and organisation expenses (-) -17.406,63 -9.452,92 G. Remuneration, social security charges and

pension -15,32 -10,65

H. Services and sundry goods (-) -24.339,83 -17.733,21 J. Taxes Classic Shares -23.098,01 -47.675,59 Institutional B Shares -13.953,64 19.753,47 K. Other expenses (-) -94.008,08 -52.400,55

Income and expenditure for the period Subtotal II + III + IV 1.514.640,48 353.690,35

V. Profit (loss) on ordinary activities before tax 16.559.674,91 4.346.112,38

VII. Result for the period 16.559.674,91 4.346.112,38

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 43.783.096,97 27.455.174,06 Profit (loss) brought forward from the previous

financial year 27.431.272,65 23.429.573,53

Profit for the period available for appropriation 16.559.674,91 4.346.112,38 Income on the creation of shares (income on the

cancellation of shares) -207.850,59 -320.511,85

II. (Appropriations to) Deductions from capital -43.750.466,63

III. Profit (loss) to be carried forward 27.431.272,65

IV. (Dividends to be paid out) -32.630,34 -23.901,41

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND FOOD & PERSONAL PRODUCTS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 1.290.000,00 EUR 59,680 769.872,00 0,53 0,53

Total bonds 769.872,00 0,53 0,53

Shares

Exchange-listed shares

Australia

SHOPPING CENTRES AUSTRALASIA - 3.400,00 AUD 1,500 4.016,06 0,00 0,00

WESFARMERS - 19.221,00 AUD 36,850 557.755,61 0,38 0,38

WOOLWORTH CORP - 17.000,00 AUD 29,330 392.637,22 0,27 0,27

Belgium

ANHEUSER-BUSCH INBEV NV - 76.000,00 EUR 65,740 4.996.240,00 3,41 3,42

ANHEUSER-BUSCH INBEV NV STRIP-VVPR 32.632,00 EUR 0,001 32,63

DELHAIZE GROEP - 10.000,00 EUR 30,250 302.500,00 0,21 0,21

SIPEF (BRU) 11.746,00 EUR 58,500 687.141,00 0,47 0,47

Brazil

AMBEV-CIA DE BEBIDAS DAS AMERICAS PREF 46.287,00 BRL 85,580 1.467.398,21 1,00 1,00

BRF - BRASIL FOODS SA - 42.700,00 BRL 42,190 667.350,62 0,46 0,46

CIA BRAS DISTRIB GRUPO PAO DE ACUCAR PREF B 7.872,00 BRL 90,500 263.906,65 0,18 0,18

NATURA COSMETICOS SA - 25.600,00 BRL 58,640 556.097,06 0,38 0,38

RAIA DROGASIL SA - 29.900,00 BRL 23,070 255.526,21 0,18 0,18

SOUZA CRUZ S.A. - 31.435,00 BRL 30,810 358.774,72 0,25 0,25

Canada

ALIMENTATION COUCHE-TARD INC - 16.018,00 CAD 48,930 597.060,06 0,41 0,41

SAPUTO INC - 7.000,00 CAD 50,310 268.279,12 0,18 0,18

Cayman Islands

HENGAN INT GROUP COMPANY LTD - 48.000,00 HKD 69,950 328.574,08 0,23 0,23

TINGYI HOLDING CORP - 133.741,00 HKD 21,550 282.043,56 0,19 0,19

Chile

COMP. CERVEC. UNIDAS ADS 12.500,00 USD 31,630 299.890,02 0,21 0,21

China

CHINA FOODS LTD - 190.000,00 HKD 7,160 133.128,48 0,09 0,09

TSINGTAO BREWERY COMPANY LTD. - 56.000,00 HKD 45,750 250.716,82 0,17 0,17

WANT WANT CHINA HOLDINGS LTD - 656.000,00 HKD 10,680 685.613,63 0,47 0,47

WUMART STORES INC - 150.000,00 HKD 16,680 244.845,23 0,17 0,17

France

CARREFOUR - 48.054,00 EUR 19,345 929.604,63 0,64 0,64

ETAB ECON CASINO GUICH-P (PAR) 7.475,00 EUR 72,100 538.947,50 0,37 0,37

PERNOD-RICARD - 32.036,00 EUR 87,440 2.801.227,84 1,91 1,92

REMY COINTREAU SA - 3.000,00 EUR 82,730 248.190,00 0,17 0,17

Germany

BEIERSDORF AG - 15.484,00 EUR 61,880 958.149,92 0,66 0,66

HENKEL KGAA (FRA) 8.000,00 EUR 51,930 415.440,00 0,28 0,28

HENKEL KGAA PREF 16.552,00 EUR 62,200 1.029.534,40 0,70 0,70

Hong Kong

CHINA AGRI-INDUSTRIES HOLDINGS - 174.850,00 HKD 4,340 74.260,82 0,05 0,05

CHINA MENGNIU DAIRY CO LTD - 210.000,00 HKD 22,000 452.112,30 0,31 0,31

MAGIC HOLDINGS INTERNATIONAL LTD - 829.000,00 HKD 3,550 287.996,52 0,20 0,20

India

ITC LTD. - 76.000,00 INR 286,800 301.747,62 0,21 0,21

Indonesia

PT GUDANG GARAM FOREIGN 40.000,00 IDR 56.300,000 177.237,70 0,12 0,12

Ireland

C&C GROUP PLC - 20.000,00 EUR 4,557 91.140,00 0,06 0,06

GLANBIA PLC - 69.411,00 EUR 8,350 579.581,85 0,40 0,40

KERRY GROUP PLC - 10.000,00 EUR 40,055 400.550,00 0,27 0,27

Israel

FRUTAROM INDUSTRIES LTD - 24.915,00 ILS 46,550 235.773,46 0,16 0,16

Japan

AJINOMOTO - 45.891,00 JPY 1.143,000 460.117,66 0,31 0,32

ASAHI GROUP HOLDINGS LTD - 19.305,00 JPY 1.837,000 311.081,45 0,21 0,21

JAPAN TOBACCO - 137.710,00 JPY 2.440,000 2.947.477,19 2,01 2,02

KIKKOMAN CORP - 18.000,00 JPY 1.230,000 194.210,53 0,13 0,13

KIRIN BREWERY - 39.954,00 JPY 1.012,000 354.679,37 0,24 0,24

MEIJI HOLDINGS CO LTD - 1.911,00 JPY 3.740,000 62.694,21 0,04 0,04

NIPPON MEAT PACKERS - 11.665,00 JPY 1.195,000 122.277,85 0,08 0,08

NISSHIN SEIFUN GROUP INC - 7.500,00 JPY 1.078,000 70.921,05 0,05 0,05

NISSIN FOOD PRODUCTS - 4.700,00 JPY 3.275,000 135.021,93 0,09 0,09

SEVEN & I HOLDINGS CO LTD - 49.100,00 JPY 2.437,000 1.049.620,18 0,72 0,72

TOYO SUISAN KAISHA LTD - 14.500,00 JPY 2.298,000 292.289,47 0,20 0,20

Malaysia

GENTING PLANTATIONS BERHAD - 41.000,00 MYR 9,000 91.524,67 0,06 0,06

IOI CORP BERHAD - 182.163,00 MYR 5,100 230.431,65 0,16 0,16

KUALA LUMPUR KEPONG BERHAD - 39.320,00 MYR 24,000 234.065,03 0,16 0,16

Mexico

BIMBO - 208.200,00 MXN 33,470 407.016,85 0,28 0,28

FEMSA - 119.800,00 MXN 129,310 904.825,59 0,62 0,62

GRUPO MODELA "C" 52.000,00 MXN 116,020 352.380,73 0,24 0,24

WAL-MART DE MEXICO SA DE CV "V" 264.800,00 MXN 42,330 654.699,78 0,45 0,45

Netherlands

DE MASTER BLENDERS 1753 NV - 69.411,00 EUR 8,719 605.194,51 0,41 0,41

KON. AHOLD - 40.000,00 EUR 10,135 405.400,00 0,28 0,28

Poland

KERNEL HOLDING SA - 3.100,00 PLN 66,750 50.713,18 0,04 0,04

Russia

MAGNIT OSJC - 15.000,00 USD 40,100 456.234,83 0,31 0,31

Singapore

GOLDEN AGRI-RESOURCES LTD - 389.000,00 SGD 0,650 157.000,93 0,11 0,11

WILMAR INTERNATIONAL LTD - 99.000,00 SGD 3,340 205.315,12 0,14 0,14

South Africa

SHOPRITE HOLDINGS LTD - 27.764,00 ZAR 204,500 507.584,44 0,35 0,35

TIGER BRANDS LTD. - 15.000,00 ZAR 325,250 436.155,66 0,30 0,30

South Korea

CJ CHEILJEDANG CORP - 792,00 KRW 355.500,000 199.479,97 0,14 0,14

KT&G CORPORATION - 11.319,00 KRW 80.800,000 647.968,54 0,44 0,44

LG HOUSEHOLD & HEALTH CARE LTD - 1.495,00 KRW 657.000,000 695.890,75 0,48 0,48

LOTTE CONFECTIONERY CO LTD - 100,00 KRW 1.630.000,000 115.484,08 0,08 0,08

ORION CORP/REPUBLIC OF SOUTH K - 1.068,00 KRW 1.099.000,000 831.578,87 0,57 0,57

Spain

DISTRIBUIDORA INTERNACIONAL DE ALIM - 45.000,00 EUR 4,810 216.450,00 0,15 0,15

Sweden

AARHUSKARLSHAMN AB - 9.000,00 SEK 276,000 289.618,51 0,20 0,20

SCA-SVENSKA CELLULOSA AB "B" 82.225,00 SEK 141,000 1.351.754,15 0,92 0,93

SWEDISH MATCH AB - 180.000,00 SEK 218,200 4.579.330,29 3,13 3,13

Switzerland

NESTLE AG REG 255.000,00 CHF 59,600 12.593.636,06 8,61 8,62

Taiwan

PRESIDENT CHAIN STORE CORP - 21.000,00 TWD 155,500 85.294,50 0,06 0,06

Thailand

CHAROEN POKHAND FOODS PCL - 200.000,00 THB 33,750 167.369,62 0,11 0,11

CPSEVEN ELEVEN PCL FOREIGN 575.600,00 THB 46,000 656.525,31 0,45 0,45

Turkey

ANADOLU EFES BIRACILIK VE - 27.000,00 TRY 25,700 294.900,13 0,20 0,20

BIM BIRLESIK MAGAZALAR AS - 8.000,00 TRY 87,250 296.642,58 0,20 0,20

COCA-COLA ICECEK URETIM AS - 45.000,00 TRY 37,000 707.607,31 0,48 0,48

U.K.

ASSOCIATED BRITISH FOODS PLC - 39.511,00 GBP 15,640 761.869,12 0,52 0,52

BAT HOLDINS BV - 134.550,00 GBP 31,210 5.177.296,88 3,54 3,54

DIAGEO - 170.858,00 GBP 17,870 3.764.310,76 2,57 2,58

IMPERIAL TOBACCO GR PLC - 95.000,00 GBP 23,730 2.779.373,69 1,90 1,90

RECKITT BENCKISER PLC - 18.000,00 GBP 38,790 860.830,97 0,59 0,59

SABMILLER PLC - 115.000,00 GBP 28,250 4.005.363,09 2,74 2,74

TATE&LYLE PLC - 91.836,00 GBP 7,620 862.767,01 0,59 0,59

U.S.A.

ALTRIA GROUP INC - 20.000,00 USD 31,420 476.638,35 0,33 0,33

ARCHER DANIEL - 29.900,00 USD 27,390 621.177,94 0,42 0,43

BEAM INC - 21.357,00 USD 61,090 989.607,96 0,68 0,68

BROWN-FORMAN CORPORATION "B" 14.780,00 USD 63,250 709.067,81 0,48 0,49

BUNGE LTD. - 10.679,00 USD 72,690 588.786,79 0,40 0,40

CHURCH & DWIGHT CO. INC. - 8.000,00 USD 53,570 325.060,68 0,22 0,22

COCA-COLA CO - 256.286,00 USD 36,250 7.046.698,65 4,82 4,82

COCA-COLA ENTERPRISE - 15.000,00 USD 31,730 361.005,76 0,25 0,25

COLGATE - PALMOLIVE - 30.968,00 USD 104,540 2.455.548,18 1,68 1,68

CONSTELLATION BRANDS INC "A" 44.850,00 USD 35,390 1.203.914,97 0,82 0,82

CVS CAREMARK CORPORATION - 80.090,00 USD 48,350 2.937.159,81 2,01 2,01

DEANFOODS CO - 10.000,00 USD 16,510 125.227,55 0,09 0,09

DR.PEPPER SNAPPLE GROUP INC - 14.416,00 USD 44,180 483.084,71 0,33 0,33

ENERGIZER HOLDINGS INC. - 26.697,00 USD 79,980 1.619.558,60 1,11 1,11

ESTEE LAUDER - 48.054,00 USD 59,860 2.181.820,72 1,49 1,49

GNC HOLDINGS INC - 20.289,00 USD 33,280 512.149,51 0,35 0,35

H.J. HEINZ CO - 9.000,00 USD 57,680 393.750,00 0,27 0,27

HERSHEY CORP - 16.018,00 USD 72,220 877.442,32 0,60 0,60

KIMBERLEY-CLARK CORP - 10.679,00 USD 84,430 683.880,44 0,47 0,47

KRAFT FOODS GROUP INC - 42.714,00 USD 45,470 1.473.153,50 1,01 1,01

KROGER CY - 51.257,00 USD 26,020 1.011.610,39 0,69 0,69

LORILLARD INC - 11.213,00 USD 116,670 992.279,06 0,68 0,68

MEAD JOHNSON NUTRITION CO - 76.886,00 USD 65,890 3.842.550,47 2,63 2,63

MOLSON COORS BREWING CO "B" 14.950,00 USD 42,790 485.217,31 0,33 0,33

MONDELEZ INTERNATIONAL INC "A" 126.008,00 USD 25,470 2.434.332,34 1,66 1,67

MONSTER BEVERAGE CORP - 105.000,00 USD 52,840 4.208.282,77 2,88 2,88

NU SKIN ENTERPRISES INC "A" 120.000,00 USD 37,050 3.372.269,42 2,30 2,31

PEPSICO - 85.429,00 USD 68,430 4.434.091,68 3,03 3,03

PHILIP MORRIS INTERNATIONAL INC. - 165.179,00 USD 83,640 10.479.043,96 7,16 7,17

PROCTER & GAMBLE - 79.022,00 USD 67,890 4.069.177,47 2,78 2,78

RALCORP HOLDINGS INC - 2.000,00 USD 89,650 135.998,18 0,09 0,09

SALLY BEAUTY CO INC - 8.000,00 USD 23,570 143.021,84 0,10 0,10

THE JM SMUCKER CO - 8.543,00 USD 86,240 558.820,02 0,38 0,38

TYSON FOODS INC -A- 21.000,00 USD 19,400 309.010,92 0,21 0,21

WAL-MART STORES - 90.768,00 USD 68,230 4.697.436,77 3,21 3,21

WHITEWAVE FOODS COMPANY - 48.054,00 USD 15,540 566.413,20 0,39 0,39

WHOLE FOODS MARKET INC. - 14.950,00 USD 91,160 1.033.709,04 0,71 0,71

Total shares 145.599.296,69 99,48 99,60

Options and futures

Exchange-listed futures

Switzerland

NESTLE AG MAR 13 200,00 CHF 59,601 987.757,71 0,68 0,68

Suspense accounts (futures)

Switzerland

NESTLE AG MAR 13 -1.205.400,00 CHF 1,000 -998.839,91 -0,68 -0,68

Total options and futures -11.082,20 -0,01 -0,01

TOTAL SECURITIES PORTFOLIO 146.358.086,49 100,00 100,12

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 252.249,84 EUR 1,000 252.249,84 0,17

TOTAL RECEIVED COLLATERAL 252.249,84 0,17

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 3.966,71 AUD 1,000 3.123,64 0,00

KBC GROUP CAD 3.484,72 CAD 1,000 2.654,62 0,00

KBC GROUP CHF 78.176,41 CHF 1,000 64.779,92 0,04

KBC GROUP DKK 55.220,80 DKK 1,000 7.401,26 0,01

KBC GROUP EURO -979.369,56 EUR 1,000 -979.369,56 -0,67

KBC GROUP GBP 45.912,04 GBP 1,000 56.604,66 0,04

KBC GROUP HKD 13.270,36 HKD 1,000 1.298,63 0,00

KBC GROUP JPY 108.864,00 JPY 1,000 954,95 0,00

KBC GROUP MXN 13.331,90 MXN 1,000 778,70 0,00

KBC GROUP NOK 54.143,73 NOK 1,000 7.379,34 0,01

KBC GROUP PLN 1.533,09 PLN 1,000 375,73

KBC GROUP SEK 20.148,86 SEK 1,000 2.349,23 0,00

KBC GROUP SGD 61.535,59 SGD 1,000 38.209,00 0,03

KBC GROUP TRY 43.006,63 TRY 1,000 18.277,36 0,01

KBC GROUP USD 485.978,64 USD 1,000 368.612,44 0,25

KBC GROUP ZAR 1.705,48 ZAR 1,000 152,47

Total demand accounts -406.417,61 -0,28

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 7.904,49 EUR 1,000 7.904,49 0,01

KBC GROUP FUT.REK.CHF 34.992,41 CHF 1,000 28.996,03 0,02

Total managed futures accounts 36.900,52 0,03

TOTAL CASH AT BANK AND IN HAND -369.517,09 -0,25

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 43.022,77 EUR 1,000 43.022,77 0,03

KBC GROUP WHT TO BE RECOVERED EUR 31.713,75 EUR 1,000 31.713,75 0,02

Netherlands

KBC CLEARING NV DEKKING CHF 119.200,00 CHF 1,000 98.773,62 0,07

Total receivables 173.510,14 0,12

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-252.249,84 EUR 1,000 -252.249,84 -0,17

KBC GROUP EUR PAYABLE -157.637,48 EUR 1,000 -157.637,48 -0,11

Payables -409.887,32 -0,28

TOTAL RECEIVABLES AND PAYABLES -236.377,18 -0,16

OTHER

Interest receivable EUR 378.588,73 0,26

Accrued interest EUR 3.575,66 0,00

Expenses payable EUR -202.651,91 -0,14

TOTAL OTHER 179.512,48 0,12

TOTAL NET ASSETS 146.183.954,54 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 0,90 0,26 0,66 0,65 Belgium 3,47 3,07 3,02 4,09 Brazil 2,34 2,85 2,42 2,44 Canada 0,25 0,19 0,41 0,59 Switzerland 7,79 7,03 6,39 8,60 Chile 0,00 0,00 0,15 0,20 China 0,49 0,87 0,68 0,81 Cayman Islands 0,48 0,39 0,73 0,42 Germany 1,42 0,93 2,00 1,64 Denmark 1,69 0,57 0,48 0,00 Spain 0,00 0,00 0,00 0,15 France 2,55 1,43 3,12 3,09 U.K. 15,06 14,58 13,85 12,44 Greece 0,34 0,00 0,00 0,00 Hong Kong 0,62 0,18 0,47 0,65 India 0,43 0,25 0,19 0,21 Indonesia 0,16 0,14 0,32 0,12 Ireland 0,99 1,31 1,48 1,26 Israel 0,00 0,00 0,11 0,16 Italy 0,48 0,00 0,00 0,00 Japan 3,82 4,64 4,45 4,10 South Korea 0,35 1,95 1,55 1,70 Mexico 1,66 2,39 1,77 1,58 Malaysia 0,72 0,60 0,38 0,38 Netherlands 3,50 4,61 3,68 0,69 Poland 0,07 0,04 0,02 0,03 Portugal 0,46 0,32 0,00 0,00 Russia 0,91 0,18 0,24 0,31 Singapore 0,41 0,41 0,22 0,25 Sweden 0,48 0,78 0,85 4,25 Thailand 0,00 0,29 0,77 0,56 Turkey 1,08 0,76 0,77 0,89 Taiwan 0,00 0,10 0,05 0,06 U.S.A. 46,64 48,45 48,19 47,04 South Africa 0,44 0,43 0,58 0,64 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 2,45 3,26 3,13 3,28 Consum(cycl) 13,20 9,20 13,46 11,13 Cons.goods 84,09 87,10 82,41 84,88 Pharma 0,26 0,00 0,00 0,00 Financials 0,00 0,44 0,46 0,53 Technology 0,00 0,00 0,37 0,00 Utilities 0,00 0,00 0,17 0,18 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 0,89 0,29 0,72 0,66 BRL 1,42 2,85 2,40 2,44 CAD 0,24 0,19 0,43 0,59 CHF 7,69 7,14 6,46 8,75 DKK 1,67 0,58 0,51 0,01 EUR 14,77 11,77 12,66 10,22 GBP 14,86 14,65 13,74 12,51 HKD 1,57 1,46 1,68 1,88 IDR 0,15 0,14 0,32 0,12 ILS 0,00 0,00 0,11 0,16 INR 0,43 0,25 0,18 0,21 JPY 3,77 3,51 4,45 4,11 KRW 0,35 1,95 1,54 1,71 MXN 1,10 2,40 1,77 1,59 MYR 0,71 0,60 0,37 0,38 NOK 0,01 0,01 0,00 0,01 PLN 0,07 0,05 0,02 0,03 SEK 0,48 0,79 0,89 4,26 SGD 0,41 0,44 0,23 0,27 THB 0,00 0,29 0,76 0,56 TRY 1,07 0,77 0,77 0,90 TWD 0,00 0,10 0,05 0,06 USD 47,90 49,33 49,37 47,92 ZAR 0,44 0,44 0,57 0,65 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND FOOD & PERSONAL

PRODUCTS (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 155.999.601,00 114.165.151,91 270.164.752,91 Sales 82.549.981,82 148.006.931,85 230.556.913,67 Total 1 238.549.582,82 262.172.083,76 500.721.666,58 Subscriptions 129.441.709,49 76.944.818,67 206.386.528,16 Redemptions 52.003.659,26 112.436.793,58 164.440.452,84 Total 2 181.445.368,75 189.381.612,25 370.826.981,00 Monthly average of total assets

148.836.339,22 166.311.725,73 157.574.032,47

Turnover rate 38,37 % 43,77 % 82,43 %

1st half of year 2nd half of year YearPurchases 155.999.601,00 114.165.151,91 270.164.752,91 Sales 82.549.981,82 148.006.931,85 230.556.913,67 Total 1 238.549.582,82 262.172.083,76 500.721.666,58 Subscriptions 129.441.709,49 76.944.818,67 206.386.528,16 Redemptions 52.003.659,26 112.436.793,58 164.440.452,84 Total 2 181.445.368,75 189.381.612,25 370.826.981,00 Monthly average of total assets

142.145.754,79 167.042.572,76 158.315.480,67

Corrected turnover rate 40,17 % 43,58 % 82,05 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 252.249,84 252.249,84 N/A 31.12.2012

KBCCLEAR DEKKING CHF

CHF 119.200,00 98.773,62 N/A 31.12.2012

NESTLE 13/03/2013 CHF 1.192.026,00 987.757,71 100,00 17.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 116.275,39 1.095,00 128.717,97 719,00 61.158,25 3.413,12 64.571,37

2011 - 12 81.046,37 470,41 119.751,71 940,00 22.452,91 2.943,52 25.396,43

2012 - 12 52.962,52 4.835,89 50.371,28 3.882,42 25.044,16 3.897,00 28.941,15

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 92.368.578,10 737.759,84 104.366.271,63 494.028,53

2011 - 12 71.909.861,01 344.090,15 105.779.654,57 681.278,66

2012 - 12 55.511.115,13 4.070.658,25 54.685.433,50 3.256.248,66

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 57.284.996,07 895,01 746,39

2011 - 12 24.061.786,93 967,52 794,32

2012 - 12 30.374.564,03 1.076,66 875,18

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 67.320,00 1.162,00 66.158,00 66.158,00

2012 - 12 140.024,00 98.701,17 107.480,83 107.480,83

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 61.798.780,86 1.085.308,56

2012 - 12 147.794.619,86 107.885.908,00

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 64.039.769,67 967,98

2012 - 12 115.809.390,51 1.077,49

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0170241062 EUR 10.22% 12.98% 6.41% 0.0794 26/02/1999 5.62%

DIV BE0170242078 EUR 10.18% 12.99% 6.41% 0.0793 26/02/1999 5.61%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228545784 EUR 10.25% 25/11/2011 18.29%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 6.28 EUR net (8.37 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.693% Classic Shares Capitalization: 1.664% Institutional B Shares Capitalization: 1.628% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 42,531 25,074 58.95%

CSFBSAS 61,431 32,195 52.41%

DEUTSCHE 6,215 3,136 50.46%

EQ CSA MACQUARIE 4,283 2,537 59.23%

HSBC 6,213 3,022 48.63%

JP MORGAN 36,455 20,253 55.56%

MERRILL 23,396 14,024 59.94%

MORGAN STANLEY 63,622 36,470 57.32%

NOMURA 54,271 28,357 52.25%

SOCGEN 3,891 1,886 48.47%

UBSWDR 80,377 44,436 55.28%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 55.620,61 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

TSINGTAO BREWERY -H- HKD 52.120 45,750 233.345,73

Total 233.345,73

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 20.000 EUR 24.436,08

FRANCE 2004 1,60% 25/07/2015 EUR 10.000 EUR 12.850,02

FRANCE - 04/55 4.00 % 25/04 EUR 169.000 EUR 207.120,15

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 7.000 EUR 7.843,59

Total 252.249,84 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Luxury & Tourism

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND LUXURY & TOURISM

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 25 June 1998 Initial subscription price: 100 EUR Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 90.08 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in share of companies associated with themes such as tourism and leisure and companies in the luxury goods sector.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund Luxury & Tourism invests in shares of companies related to the luxury and tourism industries such as Automobiles, Consumer Durables, Luxury Retail, Personal Products, Recreation, Travel & Accommodation. The fund increased in value over the year and outperformed the broad world market as represented by MSCI World All Countries. Looking back over the past year, 2012 was equally as tumultuous as the previous year. In January equity markets moved considerably higher. The Fed’s announcement that rates will remain low until at least late 2014, record results from Apple and positive US GDP growth numbers were the key support factors for equity markets. Emerging equity markets led the pack early on. After a short pause in early February, equities climbed higher again in the second half of the month. Regionally, the euro area markets strongly outperformed. Positive macroeconomic developments, especially in the US, the successful Greek debt restructuring and the liquidity injection by central banks encouraged a modest increase in equity markets in March. Towards the end of the month investors’ optimism was tempered by worries over the risks for a hard landing in China and the rise in government bond yields throughout the world.

At the start of the second quarter macro data was not supportive for equity markets. The reporting season for the first quarter was a positive factor with some 75% of US companies (S&P 500) beating expectations. In Europe, there were less positive surprises and, disappointingly earnings were down year-on-year. Euro area equity markets strongly underperformed other regions once again, while Emerging market equities also continued to underperform their Developed Market counterparts. The downward trend on stock markets intensified in May. Uncertainty over Greece and Spain continued to weigh on investors' mood in June. The announcement of plans to enable the European Stability Mechanism to directly capitalise banks rather than direct funds through the sovereign led to sharp gains in the final trading days of the month. European stock markets benefited most from the late rally, strongly outperforming other regions. During July, economic data remained weak for most regions. At the start of July, the IMF reduced its outlook on US economic growth for 2012 and 2013 due to a slowdown in consumer spending and economic demand. Despite the weak economic releases during the month, the ECB stepped in at month end to awaken global markets. August marked a month of improvement in equities after reassurances from both the ECB and the Fed. Greece’s credit rating outlook was lowered further by S&P from stable to negative as the uncertainty over its ability to meet bailout conditions continued. In the US, unemployment figures continued to worsen and the Fed’s chief Bernanke was forced to address the unemployment problem at Jackson Hole. Overall data releases from China were weak with declining exports, industrial production and manufacturing figures. Earnings revisions for MSCI EM were revised downwards for 2012 and 2013. The salient moment for the fourth quarter was undoubtedly the re-election of President Obama and the last minute knife edge decision for the fiscal cliff. The re-election of President Obama helped to remove some of the policy uncertainty for the US. A strong rally in China in December allowed the Shanghai composite to erase some of its earlier losses of this year. Equity Fund Luxury & Tourism outperformed the broad market during the last year and had mostly positive performances throughout the year. The fund strongly outperformed the broad world market for the first three months of the year. All of the themes in the fund were in positive territory for the first quarter with consumer durables being the strongest. The top names during this period were Hugo Boss, Arctic Cat and Christian Dior. The standout name in terms of detractors to fund performance was the dual-listed Cruise company Carnival. The company hit the headlines in early January after the disaster that was the Costa Concordia which ran aground off the coast of Italy. The Costa Concordia which was carrying over 3,200 passengers ran aground and struck submerged rocks and resulted in the deaths of a small number of passengers. Marketing for the company was suspended in the wake of the accident. Whilst the share price dipped substantially in the immediate aftermath of the accident. These losses continued well into February and the stock only began its faint recovery in March. The following quarter marked a period of mixed returns and underperformance against the broad world market as the fund suffered losses in May and June. The most disappointing month in terms of performance was May with all sectors of the fund in negative territory. The recreation theme was the most successful in terms of performance during the second quarter with consumer durables reversing some of its gains and fairing the worst. In terms of recreation stocks, Walt Disney had a superior quarter after they announced strong second quarter earnings which beat analysts’ estimates. Revenue at their theme parks and consumer products rose sharply. Disney’s share price hit an all time high during the month of May and continued on its rally until early October. During May momentum appeared to decelerate, especially in the US luxury market. Whilst growth figures still appeared positive throughout leading US department stores, the figures are not ahead of expectations. There was also a noticeable slowdown in the robust Europe tourist traffic which had driven much of the sectors strong sales to date. Entering the third quarter the fund improved from its dismal performance from the previous quarter and witnessed a modest positive performance. However when compared to the broad world market the fund had underperformed. All themes within the fund were in positive territory aside from personal products. Volkswagen was the top name for the fund during the third quarter. They began the quarter on a high after they finally agreed after a ‘seven-year saga’ to buy the 50.1 percent stake in Porsche. The cash deal is based on an equity value of 3.88 billion euro and was seen as a considerable growth opportunity in the high margin premium autos sector. The combination of the two firms will strengthen the business both financially and strategically. The stock continued its ascent throughout the year and was an overall noteworthy stock in terms of performance for the fund this year. The final quarter of the year saw the fund regain its composure and make solid gains whilst also outperforming the broad world market. All themes of the fund contributed positively to the overall return. Consumer durables were once again the key theme leading the gains, followed closely by travel & accommodation. Danish jewelry maker Pandora was a strong performer this quarter and also throughout the second half of the year. After a disastrous cycle last year which saw shareholder value wiped out, Pandora finally saw a resurgence in its share price after they raised their outlook for full year gross margins. Q2 EBIT figures were above expectations and the autumn winter collections of their products were well received within stores.

2.1.8 FUTURE POLICY Looking forward, we believe that 2013 will be a year of sluggish and weak growth for the overall global economy. While global growth is expected to be positive it is not anticipated that it will be much more positive when compared to 2012. Developed markets are being highlighted as the point of weakness with only modest expansion expected. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on global growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to continue their decline in 2013. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. Household incomes and corporate and financial sector rebalancing is expected to continue hindering consumption growth in these regions. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only a short term solution in advance of the debt ceiling debate to follow in February. Inflation is expected to remain contained in developed markets this year allowing monetary policy to focus on growth. In the US, growth is predicted to improve in the second half of the year along with improvement in the housing market and unemployment figures. It would appear that growth in 2013 will emanate from the same source as 2012, with almost 90% of global GDP growth expected to originate from Emerging Markets. Growth is also expected to continue in China where considerable confidence remains, however it is not expected to surpass the growth of 2012. In relation to the BRIC countries, Brazil is expected to exhibit the most improved growth as its economy rebounds as a result of the monetary and fiscal policies introduced this year. The key macro issues facing Emerging Markets in 2013 are the EU sovereign debt crisis, US fiscal policy and Chinese growth. For 2013, in respect of the luxury sector it is expected that there will be further normalisation of demand patterns. While China remains the key area for growth, new frontiers such as the Middle East, Brazil and South-East Asia are being explored by key companies interested in expanding their reach. Companies will also be focusing on improving their distribution channels through greater retail penetration and improving their e-commerce presence. In the US, high-end luxury retail is holding up well and is expected to remain positive into 2013. While traffic into stores was relatively flat towards the end of 2012, a steady improvement is expected for the coming year. With only modest growth expected for the global economy this year, it is reasonable to expect that growth will also be relatively modest for the luxury sector. The strength however will remain in Emerging Markets which display the most encouraging growth figures. This divergence between the Developed markets and Emerging markets growth is positive for the sector. Rising disposable income within the middle class section of China is encouraging for companies and the continued increase in travelling consumers is also crucial.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 11.863.216,19 13.819.346,55

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 578.540,45 394.278,09 C. Shares and similar instruments a) Shares 11.867.065,41 13.797.511,82 Of which securities lent 534.543,99 521.230,45

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 7.835,55 2.386,26 b) Tax assets 676,31 386,46 B. Payables a) Accounts payable (-) -3.625,50 -7.045,09 d) Collateral (-) -578.540,45 -394.278,09

V. Deposits and cash at bank and in hand A. Demand balances at banks 32.616,00 42.474,71

VI. Accruals and deferrals A. Expense to be carried forward 538,11 B. Accrued income 10.069,46 17.861,43 C. Accrued expense (-) -51.421,04 -34.767,15

TOTAL SHAREHOLDERS' EQUITY 11.863.216,19 13.819.346,55

A. Capital 5.100.158,31 9.898.730,45

B. Income equalization 61.669,49 17.892,04

C. Profit(Loss) carried forward 3.920.616,10 5.980.741,20

D. Result for the period 2.780.772,29 -2.078.017,14

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 578.540,45 394.278,09

IX Financial instruments lent 534.543,99 521.230,45

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 3.663.644,72 -2.484.808,97 D. Other securities -502,32 2,33 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -843.682,06 472.758,76

II. Investment income and expenses A. Dividends 345.963,59 292.281,88 B. Interests a) Securities and money market instruments 19.050,45 23.509,41 b) Cash at bank and in hand and deposits 583,74 689,27 C. Interest on borrowings (-) -1.724,42 -725,78

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

184.978,78 1.172,43

B. Other 12.598,32

IV. Operating expenses A. Investment transaction and delivery costs (-) -207.236,73 -45.107,88 B. Financial expenses (-) -187,76 -2.304,42 C. Custodian's fee (-) -11.551,00 -13.781,90 D. Manager's fee (-) a) Financial management Classic Shares -95.045,45 -206.035,85 Institutional B Shares -212.921,41 -7.509,36 b) Administration and accounting management -22.275,92 -15.392,14 F. Formation and organisation expenses (-) -2.341,84 -82.740,68 G. Remuneration, social security charges and

pension -3,13

H. Services and sundry goods (-) -4.644,18 -4.736,91 J. Taxes Classic Shares -4.087,48 -11.265,13 Institutional B Shares -1.089,56 3.727,99 K. Other expenses (-) -26.158,86 -10.345,38

Income and expenditure for the period Subtotal II + III + IV -38.688,05 -65.969,26

V. Profit (loss) on ordinary activities before tax 2.780.772,29 -2.078.017,14

VII. Result for the period 2.780.772,29 -2.078.017,14

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 6.763.057,88 3.920.616,10 Profit (loss) brought forward from the previous

financial year 3.920.616,10 5.980.741,20

Profit for the period available for appropriation 2.780.772,29 -2.078.017,14 Income on the creation of shares (income on the

cancellation of shares) 61.669,49 17.892,04

II. (Appropriations to) Deductions from capital -6.759.850,57

III. Profit (loss) to be carried forward 3.920.616,10

IV. (Dividends to be paid out) -3.207,31

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND LUXURY & TOURISM

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Australia

OROTONGROUP - 18.535,00 AUD 6,900 100.709,90 0,85 0,85

QANTAS AIRWAYS TLD - 72.214,00 AUD 1,490 84.730,18 0,71 0,71

Austria

WOLFORD AG - 191,00 EUR 25,000 4.775,00 0,04 0,04

Belgium

ROULARTA MEDIA GROUP (BRU) STRIP-VVPR 1.200,00 EUR 0,001 1,20

VAN DE VELDE - 2.788,00 EUR 34,200 95.349,60 0,80 0,80

Bermuda

MANDARIN ORIENTAL INTL LTD - 78.000,00 USD 1,450 85.785,80 0,72 0,72

ORIENT EXPRESS HOTELS LTD -A- 5.902,00 USD 11,690 52.331,90 0,44 0,44

Cayman Islands

PARKSON RETAIL GROUP LTD - 136.000,00 HKD 6,250 83.180,84 0,70 0,70

China

XINYU HENGDELI HOLDINGS LTD - 388.000,00 HKD 2,780 105.555,50 0,89 0,89

Denmark

BANG & OLUFSEN_AS - 10.950,00 DKK 67,500 99.065,14 0,84 0,84

PANDORA A/S - 5.339,00 DKK 124,500 89.090,67 0,75 0,75

France

AIR FRANCE-KLM (PAR) 11.556,00 EUR 6,999 80.880,44 0,68 0,68

CHRISTIAN DIOR - 780,00 EUR 128,250 100.035,00 0,84 0,84

CLUB MEDITERRANEE (PAR) 4.135,00 EUR 13,380 55.326,30 0,47 0,47

HERMES INTL. (PAR) 355,00 EUR 226,300 80.336,50 0,68 0,68

INTERPARFUMS - 4.810,00 EUR 23,160 111.399,60 0,94 0,94

L'OREAL - 2.332,00 EUR 104,900 244.626,80 2,06 2,06

LANSON BCC - 183,00 EUR 32,590 5.963,97 0,05 0,05

LAURENT-PERRIER GROUP (PAR) 584,00 EUR 70,000 40.880,00 0,34 0,35

LVMH-MOET H.L.VUIT. - 1.543,00 EUR 138,800 214.168,40 1,81 1,81

PERNOD-RICARD - 2.097,00 EUR 87,440 183.361,68 1,55 1,55

PINAULT-PRINTEMPS-REDOUTE - 1.248,00 EUR 140,850 175.780,80 1,48 1,48

REMY COINTREAU SA - 3.104,00 EUR 82,730 256.793,92 2,16 2,17

VRANKEN-POMMERY MONOPOLE (PAR) 1.312,00 EUR 20,760 27.237,12 0,23 0,23

Germany

BAYERISCHE MOTOREN WERKE AG - 2.363,00 EUR 72,930 172.333,59 1,45 1,45

DAIMLER AG - 2.790,00 EUR 41,320 115.282,80 0,97 0,97

DEUTSCHE LUFTHANSA AG REG 7.534,00 EUR 14,240 107.284,16 0,90 0,90

GERRY WEBER INTL AG - 419,00 EUR 36,510 15.297,69 0,13 0,13

HUGO BOSS AG - 2.001,00 EUR 79,800 159.679,80 1,35 1,35

PORSCHE AUTOMOBIL HOLDING SE PREF 1.850,00 EUR 61,700 114.145,00 0,96 0,96

POWERLAND AG - 3.885,00 EUR 7,259 28.201,22 0,24 0,24

TUI AG PREF 8.748,00 EUR 7,849 68.663,05 0,58 0,58

VOLKSWAGEN AG PREF 739,00 EUR 172,150 127.218,85 1,07 1,07

Greece

FOLLIE FOLLIE GROUP - 8.972,00 EUR 12,920 115.918,24 0,98 0,98

Hong Kong

CATHAY PACIFIC AIRWAYS - 69.445,00 HKD 14,220 96.637,33 0,81 0,82

CHINA TRAVEL INTL INV HK LTD. - 1.507,00 HKD 1,590 234,48 0,00 0,00

CHOW TAI FOOK JEWELLERY GROUP - 98.800,00 HKD 12,440 120.276,75 1,01 1,01

EMPEROR WATCH & JEWELLERY LTD - 1.170.000,00 HKD 0,950 108.771,17 0,92 0,92

HONG KONG & SHANGHAI HOTEL - 208.667,00 HKD 10,820 220.945,61 1,86 1,86

LOCCITANE INTERNATIONAL SA - 71.000,00 HKD 24,550 170.574,53 1,44 1,44

PCD STORES GROUP LTD - 630.000,00 HKD 0,940 57.952,58 0,49 0,49

PORTS DESIGN LTD - 30.900,00 HKD 6,160 18.627,03 0,16 0,16

PRADA SPA - 15.100,00 HKD 73,950 109.274,66 0,92 0,92

SHANGRI-LA ASIA LTD - 79.252,00 HKD 15,440 119.746,24 1,01 1,01

SITOY GROUP HOLDINGS LTD - 177.000,00 HKD 5,000 86.605,93 0,73 0,73

Italy

DAVIDE CAMPARI - MILANO SPA - 37.957,00 EUR 5,800 220.150,60 1,86 1,86

FIAT SPA - 12.371,00 EUR 3,790 46.886,09 0,40 0,40

IMMSI SPA (MIL) 182.173,00 EUR 0,448 81.577,07 0,69 0,69

LUXOTTICA GROUP SPA - 3.831,00 EUR 31,070 119.029,17 1,00 1,00

SAFILO SPA - 17.217,00 EUR 6,665 114.751,31 0,97 0,97

SALVATORE FERRAGAMO ITALIA SPA - 4.273,00 EUR 16,640 71.102,72 0,60 0,60

TOD'S SPA - 1.842,00 EUR 95,650 176.187,30 1,49 1,49

YOOXSPA - 13.860,00 EUR 11,920 165.211,20 1,39 1,39

Japan

ACCORDIA GOLF CO LTD - 368,00 JPY 80.400,000 259.536,84 2,19 2,19

ALL NIPPON AIRWAYS - 104.000,00 JPY 181,000 165.122,81 1,39 1,39

CITIZEN HOLDINGS CO LTD - 23.800,00 JPY 452,000 94.364,91 0,80 0,80

DR CI:LABO CO LTD - 71,00 JPY 269.600,000 167.908,77 1,42 1,42

HONDA MOTOR CO - 4.200,00 JPY 3.145,000 115.868,42 0,98 0,98

ISETAN MITSUKOSHI HOLDINGS LTD - 8.970,00 JPY 842,000 66.252,11 0,56 0,56

KAO CORP - 7.900,00 JPY 2.249,000 155.851,75 1,31 1,31

KOSE CORP - 2.035,00 JPY 1.805,000 32.220,83 0,27 0,27

PANASONIC CORPORATION - 21.700,00 JPY 522,000 99.363,16 0,84 0,84

SHARP CORP - 45.000,00 JPY 303,000 119.605,26 1,01 1,01

SHISEIDO CO - 15.553,00 JPY 1.217,000 166.035,10 1,40 1,40

SONY CORP - 10.510,00 JPY 958,000 88.320,88 0,74 0,74

TAKASHIMAYA CORP - 15.188,00 JPY 613,000 81.668,81 0,69 0,69

TOYOTA MOTOR_CREDIT - 4.845,00 JPY 4.005,000 170.212,50 1,43 1,44

YAMAHA MOTORS - 12.800,00 JPY 949,000 106.554,39 0,90 0,90

Malaysia

GENTING BERHAD - 50.300,00 MYR 9,200 114.780,37 0,97 0,97

MALAYSIAN AIRLINES - 189.600,00 MYR 0,710 33.389,39 0,28 0,28

Singapore

SINGAPORE AIRLINES LTD - 23.478,00 SGD 10,750 156.714,37 1,32 1,32

South Korea

LG FASHION CORP - 8.930,00 KRW 31.300,000 198.029,69 1,67 1,67

Switzerland

COMPAGNIE FINANCIERE RICHEMONT "A" 2.845,00 CHF 71,400 168.323,67 1,42 1,42

KUONI REISEN HOLDING "B" 502,00 CHF 274,000 113.977,46 0,96 0,96

LINDT & SPRUENGLI AG - 9,00 CHF 34.515,000 257.403,88 2,17 2,17

THE SWATCH GROUP AG - 302,00 CHF 461,200 115.414,65 0,97 0,97

THE SWATCH GROUP AG REG 1.769,00 CHF 78,750 115.436,48 0,97 0,97

U.K.

BURBERRY GROUP PLC - 7.533,00 GBP 12,260 113.863,37 0,96 0,96

CARNIVAL PLC PLC 3.732,00 GBP 23,580 108.495,33 0,91 0,92

DIAGEO - 9.013,00 GBP 17,870 198.572,69 1,67 1,67

INTERCONTINENTAL HOTELS GROUP PLC - 4.018,00 GBP 17,070 84.560,79 0,71 0,71

INTERNAT CONSOLIDATED AIRLINES GROUP - 31.107,00 EUR 2,230 69.368,61 0,59 0,59

MULBERRY GROUP - 8.105,00 GBP 11,735 117.263,19 0,99 0,99

SIGNET GROUP PLC - 1.949,00 GBP 32,885 79.019,68 0,67 0,67

TUI TRAVEL PLC - 31.129,00 GBP 2,825 108.419,95 0,91 0,91

U.S.A.

ARCTIC CAT INC - 1.678,00 USD 33,390 42.497,28 0,36 0,36

BRUNSWICK - 2.557,00 USD 29,090 56.419,24 0,48 0,48

CALLAWAY GOLF CO - 15.560,00 USD 6,500 76.714,20 0,65 0,65

CARNIVAL CORP CORP 3.607,00 USD 36,770 100.598,75 0,85 0,85

COACH INC. - 2.773,00 USD 55,510 116.754,57 0,98 0,98

ELIZABETH ARDEN INC - 3.340,00 USD 45,010 114.027,15 0,96 0,96

ESTEE LAUDER - 2.086,00 USD 59,860 94.711,74 0,80 0,80

EXPEDIA INC. - 2.627,00 USD 61,450 122.443,23 1,03 1,03

FIFTH & PACIFIC CO INC - 6.067,00 USD 12,450 57.292,29 0,48 0,48

FOSSIL INC - 682,00 USD 93,100 48.160,04 0,41 0,41

HARLEY DAVIDSON - 1.719,00 USD 48,840 63.680,19 0,54 0,54

HOST HOTELS & RESORTS INC - 5.095,00 USD 15,670 60.557,23 0,51 0,51

MACY'S INC - 3.091,00 USD 39,020 91.482,72 0,77 0,77

MARRIOTT INTERNATIONAL - 2.848,00 USD 37,270 80.510,44 0,68 0,68

MICHAEL KORS HOLDINGS LTD - 2.359,00 USD 51,030 91.307,47 0,77 0,77

NORDSTROM - 1.860,00 USD 53,500 75.477,85 0,64 0,64

PHILLIPS VAN HEUSEN - 963,00 USD 111,010 81.085,13 0,68 0,68

POLARIS INDUSTRIES INC - 1.418,00 USD 84,150 90.507,21 0,76 0,76

POLO RALPH LAUREN CORP - 756,00 USD 149,920 85.967,48 0,72 0,73

ROYAL CARIBBEAN CRUISES LTD - 2.289,00 USD 34,000 59.030,64 0,50 0,50

SAKS INCORPORATED - 7.154,00 USD 10,510 57.030,14 0,48 0,48

SAMSONITE - 73.800,00 HKD 15,980 115.408,42 0,97 0,97

SOTHEBY'S - 1.829,00 USD 33,620 46.640,61 0,39 0,39

STARWOOD HOTELS & RESORTS - 1.346,00 USD 57,360 58.560,80 0,49 0,49

THE JONES GROUP INC - 7.298,00 USD 11,060 61.222,60 0,52 0,52

TIFFANY & CO - 2.673,00 USD 57,340 116.254,41 0,98 0,98

TRUE RELIGION APPAREL INC - 2.613,00 USD 25,420 50.381,11 0,43 0,43

VF CORP - 863,00 USD 150,970 98.822,14 0,83 0,83

WALT DISNEY - 2.798,00 USD 49,790 105.667,79 0,89 0,89

Total shares 11.867.065,41 100,00 100,03

TOTAL SECURITIES PORTFOLIO 11.867.065,41 100,00 100,03

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 578.540,45 EUR 1,000 578.540,45 4,88

TOTAL RECEIVED COLLATERAL 578.540,45 4,88

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 4.315,48 AUD 1,000 3.398,28 0,03

KBC GROUP CAD 4.069,05 CAD 1,000 3.099,76 0,03

KBC GROUP CHF 2.785,03 CHF 1,000 2.307,78 0,02

KBC GROUP DKK 560,10 DKK 1,000 75,07 0,00

KBC GROUP EURO 1.592,80 EUR 1,000 1.592,80 0,01

KBC GROUP GBP 2.130,43 GBP 1,000 2.626,59 0,02

KBC GROUP HKD 49.694,63 HKD 1,000 4.863,11 0,04

KBC GROUP JPY 327.902,00 JPY 1,000 2.876,33 0,02

KBC GROUP MXN 6.576,56 MXN 1,000 384,13 0,00

KBC GROUP MYR 561,73 MYR 1,000 139,33 0,00

KBC GROUP NOK 1.090,29 NOK 1,000 148,60 0,00

KBC GROUP NZD 2.836,68 NZD 1,000 1.775,03 0,02

KBC GROUP SEK 5.461,79 SEK 1,000 636,81 0,01

KBC GROUP SGD 4.221,20 SGD 1,000 2.621,05 0,02

KBC GROUP TRY 2.198,92 TRY 1,000 934,52 0,01

KBC GROUP USD 6.772,37 USD 1,000 5.136,81 0,04

Total demand accounts 32.616,00 0,28

TOTAL CASH AT BANK AND IN HAND 32.616,00 0,28

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 7.835,55 EUR 1,000 7.835,55 0,07

KBC GROUP WHT TO BE RECOVERED EUR 676,31 EUR 1,000 676,31 0,01

Total receivables 8.511,86 0,07

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-578.540,45 EUR 1,000 -578.540,45 -4,88

KBC GROUP EUR PAYABLE -3.625,50 EUR 1,000 -3.625,50 -0,03

Payables -582.165,95 -4,91

TOTAL RECEIVABLES AND PAYABLES -573.654,09 -4,84

OTHER

Interest receivable EUR 8.136,06 0,07

Accrued interest EUR 1.933,40 0,02

Expenses payable EUR -51.421,04 -0,43

TOTAL OTHER -41.351,58 -0,35

TOTAL NET ASSETS 11.863.216,19 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Australia 0,43 0,52 0,37 1,56 Austria 0,11 0,14 0,05 0,04 Belgium 0,15 0,18 0,11 0,80 Bermuda 0,32 0,36 0,30 1,16 Switzerland 8,47 7,36 7,34 6,49 China 0,25 0,23 0,16 0,89 Cayman Islands 0,42 0,49 0,30 0,70 Germany 13,32 12,07 12,13 7,65 Denmark 0,48 0,26 0,31 1,59 France 19,92 19,20 18,28 13,29 U.K. 8,97 9,28 9,12 7,41 Greece 0,11 0,12 0,10 0,98 Hong Kong 2,36 2,48 5,08 9,35 Italy 4,06 3,35 3,71 8,38 Japan 14,53 14,73 14,60 15,92 South Korea 0,22 0,16 0,12 1,67 Malaysia 1,42 1,72 1,38 1,25 Singapore 1,29 1,03 1,09 1,32 U.S.A. 23,17 26,32 25,45 19,55 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Consum(cycl) 78,32 76,24 77,83 69,09 Cons.goods 18,86 20,67 19,15 27,87 Pharma 1,30 1,15 1,42 1,02 Technology 0,43 0,71 0,30 1,50 Real est. 1,09 1,23 1,30 0,52 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 AUD 0,43 0,53 0,39 1,59 CAD 0,02 0,02 0,01 0,03 CHF 8,46 7,34 7,26 6,49 DKK 0,49 0,29 0,32 1,58 EUR 38,24 35,49 35,27 31,67 GBP 8,27 8,73 8,48 6,83 HKD 3,08 3,29 5,79 11,92 JPY 14,53 14,70 14,43 15,89 KRW 0,22 0,16 0,12 1,66 MYR 1,42 1,72 1,36 1,25 NZD 0,03 0,04 0,01 0,01 SEK 0,00 0,00 0,00 0,01 SGD 1,31 1,06 1,09 1,34 TRY 0,00 0,01 0,00 0,01 USD 23,50 26,62 25,47 19,72 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND LUXURY & TOURISM

(IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 42.399.725,69 37.415.004,10 79.814.729,80 Sales 10.708.013,60 73.698.388,98 84.406.402,58 Total 1 53.107.739,29 111.113.393,09 164.221.132,38 Subscriptions 44.625.353,86 22.348.917,72 66.974.271,58 Redemptions 12.636.189,27 59.085.571,31 71.721.760,58 Total 2 57.261.543,13 81.434.489,03 138.696.032,16 Monthly average of total assets

14.527.449,17 31.050.203,05 22.788.826,11

Turnover rate -28,59 % 95,58 % 112,01 %

1st half of year 2nd half of year YearPurchases 42.399.725,69 37.415.004,10 79.814.729,80 Sales 10.708.013,60 73.698.388,98 84.406.402,58 Total 1 53.107.739,29 111.113.393,09 164.221.132,38 Subscriptions 44.625.353,86 22.348.917,72 66.974.271,58 Redemptions 12.636.189,27 59.085.571,31 71.721.760,58 Total 2 57.261.543,13 81.434.489,03 138.696.032,16 Monthly average of total assets

17.373.390,10 31.107.027,70 22.860.687,13

Corrected turnover rate -23,91 % 95,41 % 111,66 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 578.540,45 578.540,45 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 82.167,85 1.577,92 106.751,03 1.018,00 113.572,76 2.575,92 116.148,68

2011 - 12 204.134,77 27.865,01 255.135,48 15.718,87 62.572,06 14.722,05 77.294,11

2012 - 12 28.244,36 4.342,99 45.377,59 9.681,47 45.438,83 9.383,57 54.822,40

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 7.408.868,06 138.970,43 9.596.736,22 83.490,08

2011 - 12 11.720.528,83 1.333.920,56 23.331.029,07 1.202.697,15

2012 - 12 2.994.168,35 399.858,10 4.858.171,98 915.050,03

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 12.373.461,03 106,85 92,69

2011 - 12 7.255.087,41 96,30 83,52

2012 - 12 6.005.795,88 112,10 97,23

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 69.305,00 1.195,00 68.110,00 68.110,00

2012 - 12 600.999,00 616.921,00 52.188,00 52.188,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 6.504.538,98 114.960,24

2012 - 12 63.783.067,34 66.140.774,41

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 6.564.259,12 96,38

2012 - 12 5.857.420,31 112,24

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0168205079 EUR 15.72% 12.80% 0.93% 0.0368 02/07/1998 0.25%

DIV BE0168207091 EUR 15.72% 12.78% 0.91% 0.0367 02/07/1998 0.24%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228550834 EUR 15.77% 25/11/2011 21.47%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 0.26 EUR net (0.34 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.715% Classic Shares Capitalization: 1.736% Institutional B Shares Capitalization: 1.67% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 11,476 6,802 59.27%

CSFBSAS 12,946 7,344 56.73%

DEUTSCHE 11,981 6,847 57.14%

EQ CSA MACQUARIE 324 202 62.50%

MERRILL 545 340 62.50%

MORGAN STANLEY 26,193 16,082 61.40%

NOMURA 21,109 11,966 56.69%

UBSWDR 39,638 24,774 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 19.975,21 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ALL NIPPON AIRWAYS CO LTD JPY 81.999 181,000 130.191,39

CHOW TAI FOOK JEWELLERY GROUP HKD 87.974 12,440 107.097,44

HERMES INTERNATIONAL SA EUR 77 226,300 17.425,10

PRADA SPA HKD 500 73,950 3.618,37

SHANGRI-LA ASIA HKD 45.251 15,440 68.372,24

SHARP CORP JPY 44.999 303,000 119.602,61

SONY JPY 10.500 958,000 88.236,84

Total 534.543,99

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

OAT FRANCE 2003 4 1/4% 25/04/19 EUR 141.000 EUR 172.274,36

OAT FRANCE 2003 4% 25/04/14 EUR 10.000 EUR 10.797,13

FRANCE 2004 1,60% 25/07/2015 EUR 127.000 EUR 163.195,25

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 174.000 EUR 191.830,13

FRANCE - 04/55 4.00 % 25/04 EUR 33.000 EUR 40.443,58

Total 578.540,45 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Trends

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND TRENDS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 30 April 1998 Initial subscription price: 5000 BEF Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 77.97 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED The sub-fund invests primarily in shares of companies operating in areas which, according to the manager, fit with the theme 'challenges and opportunities that will apply during this and subsequent decades'. The manager focuses mainly on shares of emerging market companies, companies involved in urban development, those involved in prospecting and mining of natural resources and companies whose business focuses on long-term trends of demographics, globalisation, healthcare, technology and innovation.

RISK CONCENTRATION New economy shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Looking back over the past year, 2012 was equally as tumultuous as the previous year. In January equity markets moved considerably higher. The Fed’s announcement that rates will remain low until at least late 2014, record results from Apple and positive US GDP growth numbers were the key support factors for equity markets. Emerging equity markets led the pack early on. After a short pause in early February, equities climbed higher again in the second half of the month. Regionally, the euro area markets strongly outperformed. Positive macroeconomic developments, especially in the US, the successful Greek debt restructuring and the liquidity injection by central banks encouraged a modest increase in equity markets in March. Towards the end of the month investors’ optimism was tempered by worries over the risks for a hard landing in China and the rise in government bond yields throughout the world.

At the start of the second quarter macro data was not supportive for equity markets. The reporting season for the first quarter was a positive factor with some 75% of US companies (S&P 500) beating expectations. In Europe, there were less positive surprises and, disappointingly earnings were down year-on-year. Euro area equity markets strongly underperformed other regions once again, while Emerging market equities also continued to underperform their Developed Market counterparts. The downward trend on stock markets intensified in May. Uncertainty over Greece and Spain continued to weigh on investors' mood in June. The announcement of plans to enable the European Stability Mechanism to directly capitalise banks rather than direct funds through the sovereign led to sharp gains in the final trading days of the month. European stock markets benefited most from the late rally, strongly outperforming other regions. During July, economic data remained weak for most regions. At the start of July, the IMF reduced its outlook on US economic growth for 2012 and 2013 due to a slowdown in consumer spending and economic demand. Despite the weak economic releases during the month, the ECB stepped in at month end to awaken global markets. August marked a month of improvement in equities after reassurances from both the ECB and the Fed. Greece’s credit rating outlook was lowered further by S&P from stable to negative as the uncertainty over its ability to meet bailout conditions continued. In the US, unemployment figures continued to worsen and the Fed’s chief Bernanke was forced to address the unemployment problem at Jackson Hole. Overall data releases from China were weak with declining exports, industrial production and manufacturing figures. Earnings revisions for MSCI EM were revised downwards for 2012 and 2013. The salient moment for the fourth quarter was undoubtedly the re-election of President Obama and the last minute knife edge decision for the fiscal cliff. The re-election of President Obama helped to remove some of the policy uncertainty for the US. A strong rally in China in December allowed the Shanghai composite to erase some of its earlier losses of this year. With regards to the KBC Equity Fund Millennium, the fund has increased in value over 2012, slightly behind the broad market. The fund invests in shares whose investment trends include China & India, Climate Change, Urbanisation, Environmental pressures, Asian Infrastructure, Demographic transitions and long term growth. While all themes in the fund were in positive territory, the top performing theme was Emerging Markets followed by Demographic transitions. The top investments in the fund were in the New Asia and New Market themes. Gold and natural resources were the most disappointing themes ending the year in negative territory. In terms of sector performance, investments in Financials and Information Technology were the most impressive with Telecommunications and Materials lagging. The Millennium theme had a strong performance in the first half of the year, however the fund underperformed the broad market. Most sectors in the fund had positive results with the Technology and New Asia themes outperforming. Strong names came in the form of the Elster Group, Samsung Electronics and Pure Technologies. Stocks such as Turk Hava Yollari also led the gains. Turkish Hava Yollari otherwise known as Turkish Airlines ended the first half of the year with its share price on a ten month high. The airline is Europe’s fifth biggest and plans to purchase at least 15 jumbo airliners along with many other prospective acquisitions being considered. Semiconductors were another strong sector in the fund driven by the strong performance of Samsung Electronics. Samsung which is Asia’s largest consumer electronics maker posted first quarter profits that beat analysts’ estimates. Much of these gains are attributed to their successful manufacturing of smart phones. Operating profit rose to a quarterly record after they introduced their ‘Galaxy Note’ product which was seen as a direct competitor to Apple’s similar products. In terms of laggard performances within the fund, both the Energy and Materials sectors disappointed. With regards to the Energy sector, leading oil producers Gazprom and Petrobras were the most disappointing names for the fund. The global economic woes hurt demand for oil for the first six months. Europe continues to be Gazprom’s primary export market and the ongoing instability has heavily affected orders for crude oil. Fuel demand in Europe has reduced by 12 percent for the first quarter of 2012. In terms of the materials sector, Newcrest Mining was the worst performing name. The best performing sectors in the fund were Utilities, Banks, Food and Beverage and Healthcare. On a regional basis, all sectors of the fund were in positive territory over the first six months of the year. Emerging Markets which are a key focus for the fund, was the best performing region, followed closely by North America. Despite the ongoing fiscal worries within Europe, the regional picks performed well. Pacific whilst being in positive territory was the least impressive of the four regions.

The performance of KBC Equity Fund Millennium continued on its positive trend during the third quarter and outperformed the index over the period. All sectors of the fund found themselves in positive territory over the quarter. Performance of the Energy and Information Technology sectors improved the most for the fund with Telecommunication Services in relatively flat territory. Top stocks during the quarter came in the form of Devgen, Korea Gas Corporation and Newcrest Mining. The most laggard stock was the Brazilian iron ore producer Vale who posted their lowest quarterly profit in more than two years. Vale are hoping for a rebound in Chinese economic growth as they account for almost a third of Vale’s sales. The recovery in infrastructure investment and housing will increase the demand for metal and therefore drive sales for Vale. The stable results of the fund during June and August sustained the positive performance over the quarter. KBC Equity Fund Millennium returned a flat performance throughout the fourth quarter, with the fund slightly underperforming the index over the period. The fund started the fourth quarter in negative territory and underperformed the index during October, however the losses were reversed during November and December as the markets began to improve. In terms of positive names, the Financial sector was once again a top sector with Consumer Discretionary and Industrials following closely. The Emerging Markets theme was the only positive theme for the fund in the last quarter of the year, with investments in the Technology and Gold themes fairing the worst. On a similar trend to last year Samsung Electronics remained a noteworthy name for the fund. After a year of legal wrangling with their competitor Apple, Samsung scored a victory at year end as Apple agreed to relinquish on the latest infringement case. Profit for the smart phone manufacturer is expected to be higher than consensus expectations for the fourth quarter. Overall KBC Equity Fund Millennium witnessed a positive performance throughout the year stemming from impressive Emerging Markets performance, however the fund ended the year underperforming the index over the year 2012.

2.1.8 FUTURE POLICY Looking forward, we believe that 2013 will be a year of sluggish and weak growth for the overall global economy. While global growth is expected to be positive it is not anticipated that it will be much more positive when compared to 2012. Developed markets are being highlighted as the point of weakness with only modest expansion expected. The ongoing fiscal crisis in the Eurozone is expected to continue its negative influence on global growth. Despite the European Central Bank’s efforts to control and address the crisis, Europe remains in an unstable condition. Economic releases for the Eurozone countries are not supportive with overall GDP figures expected to continue their decline in 2013. A second cause of concern is the fiscal restructuring as a result of the credit crisis that remains, almost 5 years on, for both the US and Eurozone. Household incomes and corporate and financial sector rebalancing is expected to continue hindering consumption growth in these regions. The fiscal austerity that is being forced upon consumers is making stable domestic growth for many countries virtually impossible. While a political crisis has been averted in the US after a last minute agreement regarding the fiscal cliff, this may only a short term solution in advance of the debt ceiling debate to follow in February. Inflation is expected to remain contained in developed markets this year allowing monetary policy to focus on growth. In the US, growth is predicted to improve in the second half of the year along with improvement in the housing market and unemployment figures. It would appear that growth in 2013 will emanate from the same source as 2012, with almost 90% of global GDP growth expected to originate from Emerging Markets. Growth is also expected to continue in China where considerable confidence remains, however it is not expected to surpass the growth of 2012. In relation to the BRIC countries, Brazil is expected to exhibit the most improved growth as its economy rebounds as a result of the monetary and fiscal policies introduced this year. The key macro issues facing Emerging Markets in 2013 are the EU sovereign debt crisis, US fiscal policy and Chinese growth.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 102.054.245,65 27.266.129,89

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 291.835,20 163.908,00 a} Collateral received in the form of bonds 2.366.187,50 184.498,95 C. Shares and similar instruments a) Shares 95.520.357,83 25.223.594,60 Of which securities lent 1.944.152,77 382.634,99 b) Closed-end undertakings for collective

investment 349.843,20

D. Other securities 543,66 E. Open-end undertakings for collective investment 5.977.296,88 1.498.504,85 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -3.064,83 622,06 m) Financial indices Futures and forward contracts (+/-) -4.029,50 317,75

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 822.446,53 1.214,87 b) Tax assets 823,65 c) Collateral 13.273,67 9.243,57 B. Payables a) Accounts payable (-) -801.672,27 -53.677,35 c) Borrowings (-) -165.566,25 -39.472,87 d) Collateral (-) -2.366.187,50 -184.498,95

V. Deposits and cash at bank and in hand A. Demand balances at banks 462.108,88 135.650,43

VI. Accruals and deferrals A. Expense to be carried forward 1.319,40 B. Accrued income 86.726,97 32.245,09 C. Accrued expense (-) -146.291,11 -57.727,37

TOTAL SHAREHOLDERS' EQUITY 102.054.245,65 27.266.129,89

A. Capital 93.171.726,53 23.330.392,21

B. Income equalization 133.222,00 19.765,05

C. Profit(Loss) carried forward 3.935.737,68 8.148.656,57

D. Result for the period 4.813.559,44 -4.232.683,94

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 2.366.187,50 184.498,95

I.A.B Cash at bank and in hand/deposits 13.273,67 9.243,57

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 542.324,03 287.994,91

IX Financial instruments lent 1.944.152,77 382.634,99

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -42.653,40 185,60 C. Shares and similar instruments a) Shares 5.977.241,47 -3.024.843,30 b) Closed-end undertakings for collective

investment 7.496,64 13.327,36

D. Other securities -6.340,75 -76.994,84 E. Open-end undertakings for collective investment 338.304,76 -833.842,15 F. Derivative financial instruments l) Financial indices Futures and forward contracts 36.173,13 317,75 G. Receivables, deposits, cash at bank and in hand

and payables 0,10

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -3.686,89 622,06 b) Other foreign exchange positions and

transactions -2.050.693,22 -75.485,04

II. Investment income and expenses A. Dividends 1.846.577,09 439.454,87 B. Interests a) Securities and money market instruments 84.769,00 14.429,84 b) Cash at bank and in hand and deposits 4.301,91 2.075,59 c) Collateral (+/-) 10,49 C. Interest on borrowings (-) -4.668,56 -5.930,31

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

297.327,74

B. Other 699,91

IV. Operating expenses A. Investment transaction and delivery costs (-) -386.612,37 -129.582,33 B. Financial expenses (-) -1.134,18 -3.728,54 C. Custodian's fee (-) -21.532,11 -17.656,23 D. Manager's fee (-) a) Financial management Classic Shares -370.535,27 -296.644,55 Institutional B Shares -711.584,40 b) Administration and accounting management -82.337,77 -30.529,60 E. Administrative expenses (-) 0,01 F. Formation and organisation expenses (-) -7.991,51 -183.269,86 G. Remuneration, social security charges and

pension -6,16 -6,33

H. Services and sundry goods (-) -12.340,92 923,64 J. Taxes Classic Shares -17.540,51 -18.702,55 Institutional B Shares -8.577,33 K. Other expenses (-) -50.397,05 -7.515,43

Income and expenditure for the period Subtotal II + III + IV 557.717,60 -235.971,38

V. Profit (loss) on ordinary activities before tax 4.813.559,44 -4.232.683,94

VII. Result for the period 4.813.559,44 -4.232.683,94

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 8.882.519,12 3.935.737,68 Profit (loss) brought forward from the previous

financial year 3.935.737,68 8.148.656,57

Profit for the period available for appropriation 4.813.559,44 -4.232.683,94 Income on the creation of shares (income on the

cancellation of shares) 133.222,00 19.765,05

II. (Appropriations to) Deductions from capital -8.865.458,46

III. Profit (loss) to be carried forward 3.935.737,68

IV. (Dividends to be paid out) -17.060,66

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND TRENDS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Open-end funds

UCITS registered with the FSMA

Belgium

HORIZON ACCESS FD CHINA KAP 4.020,03 USD 653,000 1.991.110,13 4,58 1,96 1,95

HORIZON ACCESS INDIA FD KAP 4.982,45 USD 1.054,780 3.986.186,75 3,42 3,93 3,92

Total investment funds 5.977.296,88 5,87 5,86

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 489.000,00 EUR 59,680 291.835,20 0,29 0,29

Total bonds 291.835,20 0,29 0,29

Shares

Exchange-listed shares

Australia

BHP BILLITON LTD - 15.760,00 AUD 37,100 460.426,81 0,45 0,45

COCHLEAR LTD - 2.601,00 AUD 79,100 162.012,05 0,16 0,16

FORTESCUE METALS GROUP - 40.871,00 AUD 4,650 149.657,57 0,15 0,15

NATIONAL AUSTRALIA BANK - 8.527,00 AUD 25,000 167.867,55 0,17 0,16

NEWCREST MINING - 20.285,00 AUD 22,180 354.296,64 0,35 0,35

RIO TINTO LTD - 3.285,00 AUD 66,010 170.755,85 0,17 0,17

THE NEWS CORPORATION INC NEW 'A' 7.923,00 USD 25,510 153.303,80 0,15 0,15

Austria

ANDRITZ AG - 4.064,00 EUR 48,540 197.266,56 0,19 0,19

ERSTE GROUP BANK AG - 7.140,00 EUR 24,025 171.538,50 0,17 0,17

RAIFFEISEN BANK INTL - 4.777,00 EUR 31,455 150.260,54 0,15 0,15

Belgium

DEVGEN STRIP-VVPR 51.700,00 EUR 0,000 5,17

ROULARTA MEDIA GROUP (BRU) STRIP-VVPR 5.000,00 EUR 0,001 5,00

SIPEF (BRU) 2.707,00 EUR 58,500 158.359,50 0,16 0,16

TELENET STRP-VVPR 44.850,00 EUR 0,001 44,85

THROMBOGENICS NV - 4.278,00 EUR 42,050 179.889,90 0,18 0,18

THROMBOGENICS NV STRIP-VVPR 162.400,00 EUR 0,002 324,80

Bermuda

COVIDIEN LTD - 7.576,00 USD 57,740 331.794,78 0,33 0,33

NINE DRAGONS PAPER HOLDINGS - 223.000,00 HKD 7,000 152.759,16 0,15 0,15

Brazil

ALL AMERICA LATINA LOGISTICA - 48.429,00 BRL 8,310 149.081,31 0,15 0,15

AMBEV-CIA DE BEBIDAS DAS AMERICAS PREF 13.026,00 BRL 85,580 412.952,43 0,41 0,41

BANCO BRADESCO S.A. PREF 30.800,00 BRL 35,170 401.272,83 0,39 0,39

BANCO DO BRASIL SA - 17.200,00 BRL 25,600 163.111,69 0,16 0,16

BM&F BOVESPA SA - 32.900,00 BRL 14,000 170.624,19 0,17 0,17

BRADESPAR S.A. PREF 18.700,00 BRL 32,830 227.420,26 0,22 0,22

BRF - BRASIL FOODS SA - 13.200,00 BRL 42,190 206.300,43 0,20 0,20

CIA DE CONCESSOES RODOVIARIAS - 23.500,00 BRL 19,450 169.318,39 0,17 0,17

COMPANHIA BRASILEIRA DE MEIOS - 8.240,00 BRL 56,990 173.957,25 0,17 0,17

COSAN SA INDUSTRIA COMERCIO - 11.900,00 BRL 41,750 184.043,34 0,18 0,18

CSN-CIA SIDERURGICA NACIONAL S.A. - 38.600,00 BRL 11,860 169.585,48 0,17 0,17

CVRD-CIA VALE DO RIO DOCE PREF A 10.200,00 BRL 40,870 154.426,38 0,15 0,15

ENERGIAS DO BRASIL SA - 34.100,00 BRL 12,490 157.773,29 0,16 0,16

GERDAU SA PREF 22.800,00 BRL 17,930 151.436,93 0,15 0,15

ITAU UNIBANCO HOLDINGS SA PREF PREF 29.300,00 BRL 33,390 362.410,45 0,36 0,36

ITAUSA-INVESTIMENTOS ITAU SA - 54.340,00 BRL 9,690 195.056,34 0,19 0,19

LOJAS AMERICANAS SA -PREF- 22.600,00 BRL 18,330 153.457,31 0,15 0,15

LOJAS RENNER SA - 5.500,00 BRL 79,750 162.483,79 0,16 0,16

PETROBRAS-PETROLEO BRASILEIRO S.A. - 48.500,00 BRL 19,550 351.240,97 0,35 0,34

PETROBRAS-PETROLEO BRASILEIRO S.A. PREF 67.500,00 BRL 19,520 488.090,39 0,48 0,48

SABESP-CIA SANEAM. BASICO SAO PAULO - 9.700,00 BRL 86,870 312.146,32 0,31 0,31

TELEF BRASIL PREF 9.300,00 BRL 49,000 168.809,04 0,17 0,17

TIM PARTICIPACOES SA - 53.100,00 BRL 8,200 161.296,54 0,16 0,16

ULTRAPAR PARTICIPACOES SA - 9.300,00 BRL 46,290 159.472,87 0,16 0,16

VALE SA - 57.900,00 BRL 42,280 906.839,04 0,89 0,89

Canada

AGNICO EAGLE MINES - 3.876,00 CAD 52,130 153.923,88 0,15 0,15

AGRIUM INC - 2.264,00 USD 99,910 171.568,75 0,17 0,17

BARRICK GOLD CORP - 21.379,00 USD 35,010 567.717,53 0,56 0,56

CANADIAN NATURAL RESOURCES LTD - 6.941,00 CAD 28,640 151.436,15 0,15 0,15

CENOVUS ENERGY INC - 5.935,00 CAD 33,290 150.511,27 0,15 0,15

ELDORADO GOLD CORP - 24.101,00 CAD 12,800 235.006,32 0,23 0,23

FIRST QUANTUM MINERALS LTD - 9.154,00 CAD 21,910 152.787,49 0,15 0,15

FRANCO-NEVADA CORP - 4.646,00 CAD 56,780 200.959,76 0,20 0,20

GOLDCORP INC - 16.100,00 CAD 36,570 448.523,65 0,44 0,44

IAMGOLD CORP - 17.613,00 CAD 11,390 152.824,00 0,15 0,15

KINROSS GOLD - 26.243,00 CAD 9,660 193.119,05 0,19 0,19

MAPLE LEAF FOODS INC - 18.758,00 CAD 11,970 171.046,90 0,17 0,17

PACIFIC RUBIALES ENERGY CORP - 8.494,00 CAD 23,110 149.536,33 0,15 0,15

SAPUTO INC - 4.613,00 CAD 50,310 176.795,94 0,17 0,17

SUNCOR ENERGY INC - 6.515,00 CAD 32,710 162.341,47 0,16 0,16

TECK RESOURCES CLASS B 8.770,00 CAD 36,150 241.514,06 0,24 0,24

YAMANA GOLD INC - 14.099,00 CAD 17,110 183.769,25 0,18 0,18

Cayman Islands

CHAODA MODERN AGRICULTURE HLDS - 170.000,00 HKD 1,100 18.299,78 0,02 0,02

CHINA INFRASTRUCTURE MACHINERY HLD - 671.000,00 HKD 2,040 133.954,42 0,13 0,13

HENGAN INT GROUP COMPANY LTD - 22.500,00 HKD 69,950 154.019,10 0,15 0,15

TENCENT HOLDINGS - 14.500,00 HKD 249,000 353.322,83 0,35 0,35

XINAO GAS HOLDINGS LTD - 46.000,00 HKD 33,750 151.927,35 0,15 0,15

Chile

BANCO SANTANDER CHILE ADR 9.928,00 USD 28,490 214.539,38 0,21 0,21

ENDESA CHILE ADR 5.767,00 USD 48,810 213.506,73 0,21 0,21

ENERSIS SA SP ADR 11.602,00 USD 18,220 160.337,11 0,16 0,16

SOC QUIMICA MINERA CHILE SA ADR "B" 4.034,00 USD 57,640 176.365,11 0,17 0,17

China

BANK OF CHINA LTD - H - 1.130.000,00 HKD 3,460 382.612,27 0,38 0,38

CHINA COAL ENERGY CO - 186.000,00 HKD 8,420 153.260,20 0,15 0,15

CHINA COMMUNICATIONS CONST-H - 345.000,00 HKD 7,480 252.537,02 0,25 0,25

CHINA CONSTRUCTION BANK - 784.000,00 HKD 6,220 477.211,39 0,47 0,47

CHINA LIFE INSURANCE CO - 70.000,00 HKD 25,300 173.309,72 0,17 0,17

CHINA RAILWAY CONSTRUCTION CORP - 213.000,00 HKD 8,810 183.636,86 0,18 0,18

CHINA RAILWAY GROUP LTD - 337.000,00 HKD 4,530 149.393,76 0,15 0,15

CHINA SHENHUA ENERGY COMPANY LTD - 51.000,00 HKD 33,950 169.439,36 0,17 0,17

DATANG INTER POWER GENERATION CO LTD - 570.000,00 HKD 2,960 165.109,06 0,16 0,16

DONGFENG MOTOR CORP - 128.000,00 HKD 11,960 149.811,62 0,15 0,15

GOLDEN EAGLE RETAIL GROUP LTD - 82.000,00 HKD 19,080 153.107,54 0,15 0,15

GUANGZHOU R&F PROPERTIES - 149.200,00 HKD 12,900 188.348,81 0,19 0,19

HUANENG POWER INTL "H" 284.000,00 HKD 7,170 199.269,97 0,20 0,20

IND & COMM BK OF CHINA - 950.000,00 HKD 5,500 511.317,49 0,50 0,50

JIANGSU EXPRESSWAY COMP LTD - 204.000,00 HKD 7,990 159.507,57 0,16 0,16

JIANGXI COPPER COMPANY LTD. -H- 84.000,00 HKD 20,400 167.692,56 0,17 0,16

PETROCHINA COMPANY LIMITID - 338.000,00 HKD 10,980 363.181,23 0,36 0,36

PICC PROPERTY & CASUALTY -H- 156.000,00 HKD 10,860 165.790,17 0,16 0,16

PING AN INSURANCE GROUP CO - 29.000,00 HKD 64,900 184.181,94 0,18 0,18

SHANGAI ELECTRIC GROUP CO LTD - 470.000,00 HKD 3,310 152.240,50 0,15 0,15

SINOPEC-CHINA PETROL & CHEM CORP. "A" 352.000,00 HKD 8,780 302.441,60 0,30 0,30

ZHEJIANG EXPRESSWAY CO. - 284.000,00 HKD 6,100 169.532,33 0,17 0,17

Colombia

BANCOLOMBIA SA - 3.810,00 USD 66,580 192.407,31 0,19 0,19

ECOPETROL SA - 6.869,00 USD 59,670 310.886,86 0,31 0,31

Czech Republic

CEZ A.S. - 5.756,00 CZK 680,000 155.964,30 0,15 0,15

TELEFONICA CZECH REPUBLIC - 11.770,00 CZK 323,600 151.768,09 0,15 0,15

Denmark

NOVO NORDISK A/S "B" 1.854,00 DKK 916,500 227.743,06 0,22 0,22

NOVOZYMES A/S "B" 7.043,00 DKK 159,200 150.280,87 0,15 0,15

France

ESSILOR (PAR) 2.050,00 EUR 76,020 155.841,00 0,15 0,15

GDF SUEZ STRIP VVPR 2.604,00 EUR 0,001 2,60

LVMH-MOET H.L.VUIT. - 1.227,00 EUR 138,800 170.307,60 0,17 0,17

NATUREX - 2.728,00 EUR 57,000 155.496,00 0,15 0,15

PERNOD-RICARD - 1.818,00 EUR 87,440 158.965,92 0,16 0,16

PINAULT-PRINTEMPS-REDOUTE - 1.902,00 EUR 140,850 267.896,70 0,26 0,26

SAINT GOBAIN - 4.670,00 EUR 32,220 150.467,40 0,15 0,15

SANOFI - 4.662,00 EUR 71,390 332.820,18 0,33 0,33

SCHNEIDER ELECTRIC SA - 3.246,00 EUR 54,830 177.978,18 0,18 0,17

SUEZ ENVIRONNEMENT SA - 29.512,00 EUR 9,109 268.824,81 0,26 0,26

TECHNIP SA (PAR) 1.803,00 EUR 86,840 156.572,52 0,15 0,15

TOTAL - 6.729,00 EUR 39,010 262.498,29 0,26 0,26

VEOLIA ENVIRONNEMENT (PAR) 30.522,00 EUR 9,155 279.428,91 0,28 0,27

VILMORIN & CIE - 1.731,00 EUR 93,600 162.021,60 0,16 0,16

Germany

BAYER AG - 4.118,00 EUR 71,890 296.043,02 0,29 0,29

BAYERISCHE MOTOREN WERKE AG - 2.416,00 EUR 72,930 176.198,88 0,17 0,17

BAYWA AG - 4.532,00 EUR 32,600 147.743,20 0,15 0,15

DAIMLER AG - 5.362,00 EUR 41,320 221.557,84 0,22 0,22

FRESENIUS SE & CO KGAA (FRA) 1.699,00 EUR 87,100 147.982,90 0,15 0,15

GEA AG - 8.033,00 EUR 24,470 196.567,51 0,19 0,19

K+S AG (FRA) 3.982,00 EUR 35,000 139.370,00 0,14 0,14

KABEL DEUTSCHLAND HOLDING AG - 2.666,00 EUR 56,570 150.815,62 0,15 0,15

KWS SAAT AG - 773,00 EUR 242,500 187.452,50 0,18 0,18

SAP AG - 5.152,00 EUR 60,690 312.674,88 0,31 0,31

VOLKSWAGEN AG PREF 881,00 EUR 172,150 151.664,15 0,15 0,15

Hong Kong

BELLE INTERNATIONAL HOLDINGS - 101.000,00 HKD 16,820 166.246,20 0,16 0,16

CHINA EVERBRIGHT INTL - 439.000,00 HKD 3,920 168.404,98 0,17 0,17

CHINA MERCHANTS HLDGS INTL - 76.000,00 HKD 24,850 184.818,03 0,18 0,18

CHINA MOBILE LTD. - 66.500,00 HKD 90,250 587.317,86 0,58 0,58

CHINA NATIONAL BUILDING MATERI - 176.000,00 HKD 11,340 195.312,52 0,19 0,19

CHINA OVERSEAS LAND & INVEST LTD - 98.000,00 HKD 23,100 221.535,03 0,22 0,22

CHINA RESOURCES POWER HOLDINGS CO - 88.000,00 HKD 19,780 170.338,69 0,17 0,17

CLP - 56.000,00 HKD 64,850 355.387,67 0,35 0,35

CNOOC LTD - 350.000,00 HKD 16,780 574.730,64 0,57 0,56

COSCO PACIFIC - 126.000,00 HKD 11,040 136.126,90 0,13 0,13

GUANGDONG INVESTMENT - 282.000,00 HKD 6,090 168.062,47 0,17 0,17

HONG KONG CHINA GAS - 152.020,00 HKD 21,150 314.641,10 0,31 0,31

MTR CORPORATION - 70.500,00 HKD 30,500 210.423,05 0,21 0,21

POWER ASSETS HOLDINGS LTD - 25.000,00 HKD 66,200 161.957,98 0,16 0,16

SHANGRI-LA ASIA LTD - 100.500,00 HKD 15,440 151.851,02 0,15 0,15

Hungary

MAGYAR OLAJ-ES GAZIPARI RT. - 2.550,00 HUF 17.755,000 155.467,52 0,15 0,15

Indonesia

INDO TAMBANGRAYA MEGAH PT - 48.000,00 IDR 41.550,000 156.963,98 0,15 0,15

INDOCEMENT TUNGGAL PRAKARSA TB - 92.500,00 IDR 22.450,000 163.435,28 0,16 0,16

PERUSAHAAN GAS NEGARA PT - 542.500,00 IDR 4.600,000 196.401,73 0,19 0,19

PT ASTRA INTL REG 250.500,00 IDR 7.600,000 149.833,54 0,15 0,15

PT BANK CENTRAL ASIA TBK - 262.000,00 IDR 9.100,000 187.642,16 0,18 0,18

PT BANK RAKYAT INDONESIA - 388.500,00 IDR 6.950,000 212.502,26 0,21 0,21

PT TELEKOMUNIKAS 'B' SCRIPLESS 216.500,00 IDR 9.050,000 154.203,49 0,15 0,15

PT UNITED TRACTORS - 96.500,00 IDR 19.700,000 149.617,11 0,15 0,15

SEMEN GRESIK FOREIGN 165.500,00 IDR 15.850,000 206.450,05 0,20 0,20

Ireland

GLANBIA PLC - 17.850,00 EUR 8,350 149.047,50 0,15 0,15

Israel

ISRAEL CHEMICALS LTD - 36.226,00 ILS 44,640 328.744,82 0,32 0,32

Italy

ENI - 13.391,00 EUR 18,340 245.590,94 0,24 0,24

PARMALAT SPA - 80.150,00 EUR 1,760 141.064,00 0,14 0,14

PRYSMIAN SPA - 9.609,00 EUR 15,010 144.231,09 0,14 0,14

SAIPEM (MIL) 5.097,00 EUR 29,300 149.342,10 0,15 0,15

Japan

ACCORDIA GOLF CO LTD - 219,00 JPY 80.400,000 154.452,63 0,15 0,15

ALL NIPPON AIRWAYS - 95.000,00 JPY 181,000 150.833,33 0,15 0,15

DENSO CORP. - 6.100,00 JPY 2.973,000 159.081,58 0,16 0,16

DR CI:LABO CO LTD - 64,00 JPY 269.600,000 151.354,39 0,15 0,15

EBARA CORP - 71.000,00 JPY 360,000 224.210,53 0,22 0,22

EISAI CO. - 4.800,00 JPY 3.600,000 151.578,95 0,15 0,15

FUJI OIL CO LTD - 25.100,00 JPY 1.249,000 274.999,12 0,27 0,27

HONDA MOTOR CO - 11.000,00 JPY 3.145,000 303.464,91 0,30 0,30

ITOHAM FOODS INC. - 70.000,00 JPY 378,000 232.105,26 0,23 0,23

KURITA WATER INDUSTR. - 23.100,00 JPY 1.892,000 383.378,95 0,38 0,38

MEIJI HOLDINGS CO LTD - 7.100,00 JPY 3.740,000 232.929,82 0,23 0,23

NIKON - 6.700,00 JPY 2.526,000 148.457,89 0,15 0,15

NIPPON MEAT PACKERS - 16.000,00 JPY 1.195,000 167.719,30 0,17 0,16

NIPPON STEEL & SUMITOMO METAL - 81.000,00 JPY 210,000 149.210,53 0,15 0,15

NIPPON SUISAN KAISHA LTD - 117.500,00 JPY 178,000 183.464,91 0,18 0,18

PANASONIC CORPORATION - 35.900,00 JPY 522,000 164.384,21 0,16 0,16

SONY CORP - 17.700,00 JPY 958,000 148.742,11 0,15 0,15

TERUMO CORP. - 4.699,00 JPY 3.405,000 140.351,71 0,14 0,14

TOKYO ELECTRON - 4.700,00 JPY 3.935,000 162.232,46 0,16 0,16

TOYOTA MOTOR_CREDIT - 14.300,00 JPY 4.005,000 502.381,58 0,49 0,49

Jersey/The Channel Islands

RANDGOLD RESOURCES LTD ADR 2.840,00 USD 99,250 213.797,03 0,21 0,21

Malaysia

AIRASIA BHD - 236.600,00 MYR 2,740 160.796,69 0,16 0,16

ALLIANCE FINANCIAL GROUP BHD - 157.800,00 MYR 4,400 172.215,19 0,17 0,17

DIGI.COM BHD - 168.000,00 MYR 5,290 220.433,07 0,22 0,22

IOI CORP BERHAD - 125.200,00 MYR 5,100 158.374,88 0,16 0,16

KUALA LUMPUR KEPONG BERHAD - 29.700,00 MYR 24,000 176.798,87 0,17 0,17

MISC BERHAD LOCAL 150.000,00 MYR 4,300 159.982,14 0,16 0,16

PETRONAS GAS BHD - 45.900,00 MYR 19,520 222.230,82 0,22 0,22

TENAGA NASIONAL (BHD) - 89.800,00 MYR 6,940 154.577,97 0,15 0,15

YTL POWER INTERNATIONAL BHD - 396.700,00 MYR 1,560 153.496,54 0,15 0,15

Mexico

AMERICA MOVIL S.A. DE C.V. ADR "L" 23.380,00 USD 23,140 410.355,89 0,40 0,40

CEMEX S.A. DE C.V. CPO 199.000,00 MXN 12,700 147.615,77 0,15 0,15

FEMSA - 25.400,00 MXN 129,310 191.841,15 0,19 0,19

GRUPO FIN.INBURSA 'O' 63.300,00 MXN 39,210 144.969,45 0,14 0,14

GRUPO TELEVISA S.A. -CPO- 57.500,00 MXN 68,250 229.216,80 0,23 0,23

GRUPOMEXICO SA -B- 89.089,00 MXN 46,750 243.266,13 0,24 0,24

IND. PENOLES SA -CP- 4.400,00 MXN 650,930 167.287,28 0,16 0,16

WAL-MART DE MEXICO SA DE CV "V" 80.700,00 MXN 42,330 199.525,20 0,20 0,20

Netherlands

AALBERTS INDUSTRIES (AMS) 13.912,00 EUR 15,700 218.418,40 0,22 0,21

ASML HOLDING NV - 3.103,00 EUR 48,000 148.944,00 0,15 0,15

NUTRECO NV - 2.449,00 EUR 64,100 156.980,90 0,15 0,15

Norway

YARA INTL ASA - 6.110,00 NOK 273,800 228.004,96 0,22 0,22

Peru

CIA DE MINAS BUENAVENTURA SA - 10.665,00 USD 35,950 290.812,16 0,29 0,29

SOUTHERN COPPER CORP (NYSE) 7.665,00 USD 37,860 220.112,94 0,22 0,22

Philippines

ABOITIZ EQUITY VENTURES INC - 166.700,00 PHP 52,950 163.045,56 0,16 0,16

MANILA ELECTRIC CY - 31.190,00 PHP 260,600 150.140,27 0,15 0,15

MANILA WATER CO - 347.300,00 PHP 32,000 205.287,35 0,20 0,20

Poland

BANK PEKAO SA - 3.757,00 PLN 167,500 154.228,24 0,15 0,15

KGHM POLSKA MIEDZ SA - 3.364,00 PLN 190,000 156.645,34 0,15 0,15

POLSKI KONCERN NAFTOWY ORLEN SA - 12.397,00 PLN 49,500 150.393,72 0,15 0,15

POWSZECHNY BANK KREDYTOWY SA - 1.574,00 PLN 437,000 168.575,35 0,17 0,17

Portugal

JERONIMO MARTINS - 10.543,00 EUR 14,600 153.927,80 0,15 0,15

Russia

GAZPROM ADR NEW 89.813,00 USD 9,460 644.440,97 0,63 0,63

LUKOIL - 7.996,00 USD 66,150 401.194,93 0,39 0,39

MAGNIT OSJC - 6.427,00 USD 40,100 195.481,42 0,19 0,19

MOBILE TELESYSTEMS ADR 12.210,00 USD 18,650 172.721,86 0,17 0,17

NOVATEK OAO - 1.824,00 USD 119,800 165.742,72 0,16 0,16

ROSNEFT OIL COMPANY - 29.686,00 USD 8,910 200.623,68 0,20 0,20

SBERBANK OF RUSSIA ADR 44.387,00 USD 12,300 414.108,09 0,41 0,41

TATNEFT - 4.977,00 USD 43,570 164.478,07 0,16 0,16

URALKALI - 8.038,00 USD 38,210 232.958,12 0,23 0,23

Singapore

PETRA FOODS LTD - 88.000,00 SGD 3,430 187.420,06 0,18 0,18

SEMBCORP INDUSTRIES LTD - 62.000,00 SGD 5,250 202.111,15 0,20 0,20

South Africa

AFRICAN RAINBOW MINERALS GOLD LTD. - 8.929,00 ZAR 189,900 151.586,57 0,15 0,15

ANGLOGOLD ASHANTI LTD - 8.666,00 ZAR 262,340 203.243,26 0,20 0,20

ASTRAL FOODS LTD - 17.017,00 ZAR 103,500 157.454,94 0,16 0,15

GOLD FIELDS LTD - 15.753,00 ZAR 103,750 146.111,48 0,14 0,14

HARMONY S.AFR. REGD 25.464,00 ZAR 74,000 168.457,87 0,17 0,17

IMPALA PLATINUM HOLDINGS LTD. - 10.377,00 ZAR 167,700 155.574,29 0,15 0,15

KUMBA RESOURCES LTD - 3.029,00 ZAR 568,880 154.046,87 0,15 0,15

MTN GROUP LTD. - 19.591,00 ZAR 177,600 311.051,65 0,31 0,31

NASPERS LTD N 3.574,00 ZAR 543,200 173.559,05 0,17 0,17

REUNERT LTD - 23.686,00 ZAR 75,350 159.554,09 0,16 0,16

SASOL LTD - 5.920,00 ZAR 362,800 192.009,15 0,19 0,19

South Korea

DONGBU INSURANCE CO LTD - 5.008,00 KRW 45.950,000 163.036,31 0,16 0,16

DOOSAN HEAVY INDS & CONSTRUCTION CO - 4.798,00 KRW 45.200,000 153.650,22 0,15 0,15

GLOVISCO CO LTD - 1.009,00 KRW 221.500,000 158.343,19 0,16 0,16

HANKOOK TIRE WORLDWIDE CO LTD - 5,00 KRW 19.800,000 70,14

HANKOOK TIRE WORLDWIDE CO LTD - 4.595,00 KRW 47.000,000 153.009,32 0,15 0,15

HYUNDAI MARINE & FIRE INSURANCE CO - 6.900,00 KRW 33.300,000 162.790,04 0,16 0,16

HYUNDAI MOBIS - 777,00 KRW 288.000,000 158.543,34 0,16 0,16

HYUNDAI MOTOR - 2.937,00 KRW 218.500,000 454.663,29 0,45 0,45

HYUNDAI SECURITIES PREF 5,00 KRW 8.220,000 29,12

KB FINANCIAL GROUP INC - 8.610,00 KRW 37.900,000 231.194,16 0,23 0,23

KIA MOTORS CORP. - 3.700,00 KRW 56.500,000 148.110,10 0,15 0,15

KOREA ELECTRIC POWER (KEPCO) CORP - 8.450,00 KRW 30.450,000 182.296,57 0,18 0,18

KOREA GAS CORP - 2.823,00 KRW 75.100,000 150.205,32 0,15 0,15

KOREA ZINC CO LTD - 521,00 KRW 405.000,000 149.495,20 0,15 0,15

KT CORPORATION - 6.780,00 KRW 35.500,000 170.526,76 0,17 0,17

KT&G CORPORATION - 2.588,00 KRW 80.800,000 148.152,89 0,15 0,15

LOTTE SHOPPING CO LTD - 580,00 KRW 377.000,000 154.918,70 0,15 0,15

MAEIL DAIRY INDUSTRY CO LTD - 6.909,00 KRW 31.250,000 152.967,69 0,15 0,15

NHN CORP - 1.114,00 KRW 227.000,000 179.161,85 0,18 0,18

POSCO - 1.130,00 KRW 349.000,000 279.407,70 0,28 0,27

SAMSUNG ELECTRONICS - 1.727,00 KRW 1.522.000,000 1.862.265,05 1,83 1,83

SAMSUNG ENGINEERING CO LTD - 1.424,00 KRW 165.500,000 166.971,55 0,16 0,16

SAMSUNG FIRE & MARINE INSURANCE CO - 1.005,00 KRW 218.000,000 155.223,35 0,15 0,15

SHINHAN FINANCIAL GROUP CO LTD. - 6.350,00 KRW 38.850,000 174.783,02 0,17 0,17

SK CORP LTD - 1.266,00 KRW 179.000,000 160.554,04 0,16 0,16

SK ENERGY CO LTD - 1.297,00 KRW 174.000,000 159.890,89 0,16 0,16

SK TELECOM CO LTD - 1.624,00 KRW 152.500,000 175.464,95 0,17 0,17

WOORI - 18.900,00 KRW 11.800,000 158.007,72 0,16 0,16

Spain

EBRO FOODS SA (MAD) 10.890,00 EUR 15,000 163.350,00 0,16 0,16

Sweden

ALFA LAVAL - 14.846,00 SEK 135,300 234.197,35 0,23 0,23

ERICSSON "B" 23.357,00 SEK 65,100 177.285,32 0,17 0,17

GETINGE AB B 6.393,00 SEK 220,000 163.984,24 0,16 0,16

Switzerland

ABB LTD - 12.170,00 CHF 18,750 189.084,77 0,19 0,19

ARYZTA AG - 4.901,00 EUR 39,000 191.139,00 0,19 0,19

COMPAGNIE FINANCIERE RICHEMONT "A" 5.046,00 CHF 71,400 298.545,24 0,29 0,29

EMMI AG - 940,00 CHF 230,000 179.151,47 0,18 0,18

GEBERIT AG - 1.212,00 CHF 201,400 202.267,82 0,20 0,20

LINDT & SPRUENGLI AG - 6,00 CHF 34.515,000 171.602,59 0,17 0,17

NOVARTIS AG ADR 4.585,00 USD 63,300 220.138,43 0,22 0,22

PENTAIR LTD - REGISTERED - 11.470,00 USD 49,150 427.602,02 0,42 0,42

ROCHE HOLDING GENOTS 1.397,00 CHF 184,000 212.999,67 0,21 0,21

SULZER FRERES (NOM) 2.158,00 CHF 144,100 257.679,65 0,25 0,25

SYNGENTA (NOM) 595,00 CHF 366,600 180.748,26 0,18 0,18

THE SWATCH GROUP AG REG 3.952,00 CHF 78,750 257.888,63 0,25 0,25

Taiwan

ASUSTEK COMPUTER INC - 18.000,00 TWD 326,500 153.506,60 0,15 0,15

CHICONY ELECTRONICS CO LTD - 88.520,00 TWD 67,100 155.144,10 0,15 0,15

FUBON FINANCIAL HOLDING CO - 190.991,00 TWD 35,100 175.102,11 0,17 0,17

HON HAI PRECISION GDR 37.857,00 USD 6,010 172.573,25 0,17 0,17

MEDIATEK INCORPORATION - 18.828,00 TWD 323,500 159.092,54 0,16 0,16

MEGA FINANCIAL HOLD CO - 994,00 TWD 22,600 586,77 0,00 0,00

MSTAR SEMICONDUCTOR INC - 363,00 TWD 218,000 2.066,97 0,00 0,00

NOVATEK MICROELECTRONICS CORP - 54.000,00 TWD 117,500 165.730,70 0,16 0,16

PEGATRON CORP - 158.000,00 TWD 37,550 154.966,70 0,15 0,15

PHISON ELECTRONICS CORP - 30.000,00 TWD 192,500 150.842,37 0,15 0,15

PRESIDENT CHAIN STORE CORP - 34.000,00 TWD 155,500 138.095,86 0,14 0,14

RICHTEK TECHNOLOGY CORP - 36.000,00 TWD 169,500 159.383,57 0,16 0,16

SHIN KONG FINANCIAL HOLDING CO - 768,00 TWD 8,190 164,29

SIMPLO TECHNOLOGY CO LTD - 43.900,00 TWD 146,000 167.412,82 0,16 0,16

TAISHIN_FINANCIAL HOLD CO - 557.819,00 TWD 11,550 168.285,48 0,17 0,17

TAIWAN SEMICONDUCTOR - 374.000,00 TWD 97,000 947.577,38 0,93 0,93

TECO ELECTRIC AND MACHINERY CO - 272.000,00 TWD 22,250 158.077,58 0,16 0,16

TRIPOD TECHNOLOGY CORP - 91.000,00 TWD 62,300 148.081,49 0,15 0,15

TSRC CORP - 98.800,00 TWD 59,000 152.258,06 0,15 0,15

UNITED MICRO ELECTRONICS - 606.000,00 TWD 11,700 185.195,25 0,18 0,18

WISTRON CORP - 208.099,00 TWD 30,100 163.609,24 0,16 0,16

Thailand

ADVANCED INFO SERVICE PUBLIC CO LTD LOCAL 30.000,00 THB 209,000 155.467,78 0,15 0,15

BANGKOK BANK PUBLIC LOCAL 39.300,00 THB 195,500 190.507,54 0,19 0,19

BANK OF AYUDHYA PCL - 209.100,00 THB 32,500 168.504,01 0,17 0,17

CHAROEN POKHAND FOODS PCL - 200.300,00 THB 33,750 167.620,67 0,17 0,16

KASIKORNBANK PLC LOC 38.800,00 THB 193,500 186.159,65 0,18 0,18

PTT EXPLORATION PRODUCTION (L) 38.200,00 THB 164,000 155.338,84 0,15 0,15

PTT EXPLORATION PRODUCTION FOREIGN 2.379,00 THB 164,000 9.674,11 0,01 0,01

SIAM COMM. BK. PUBL. CO. LOCAL 63.800,00 THB 181,500 287.124,44 0,28 0,28

Turkey

AKBANK T.A.S. - 44.910,00 TRY 8,800 167.959,20 0,17 0,17

EMLAK KONUT GAYRIMENKUL YATIRI - 123.269,00 TRY 3,120 163.450,61 0,16 0,16

HACI OMER SABANCI HOLDING S.A - 38.365,00 TRY 9,800 159.786,23 0,16 0,16

TOFAS TURK OTOMOBIL FABRIKASI AS - 32.365,00 TRY 10,450 143.737,46 0,14 0,14

TUPRAS-TURKIYE PETROL RAF. A.S. - 7.446,00 TRY 51,500 162.970,25 0,16 0,16

TURK HAVA YOLLARI AO - 62.052,00 TRY 6,260 165.085,22 0,16 0,16

TURK TELEKOMUNIKASYON AS - 53.611,00 TRY 6,920 157.666,01 0,16 0,15

U.K.

ANGLO AMERICAN PLC PLC 6.785,00 GBP 18,940 158.436,57 0,16 0,16

ANTOFAGASTA PLC - 8.995,00 GBP 13,240 146.829,98 0,14 0,14

ARM HOLDG - 23.236,00 GBP 7,680 220.012,92 0,22 0,22

AVANGARDCO INVESTMENTS PUBLIC - 18.627,00 USD 11,330 160.075,78 0,16 0,16

BG GROUP PLC - 14.987,00 GBP 10,125 187.083,44 0,18 0,18

BILLITON PLC - 14.788,00 GBP 21,295 388.251,09 0,38 0,38

BP PLC - 30.764,00 GBP 4,248 161.121,28 0,16 0,16

CARNIVAL PLC PLC 4.828,00 GBP 23,580 140.357,84 0,14 0,14

DAIRY CREST GROUP PLC - 44.082,00 GBP 3,842 208.806,61 0,21 0,21

DIAGEO - 6.683,00 GBP 17,870 147.238,58 0,15 0,14

FRESNILLO PLC - 6.429,00 GBP 18,470 146.398,26 0,14 0,14

GENUS PLC - 8.910,00 GBP 13,970 153.461,60 0,15 0,15

GLAXOSMITHKLINE PLC - 20.561,00 GBP 13,350 338.416,16 0,33 0,33

GLENCORE INTERNATIONAL PLC - 37.199,00 GBP 3,513 161.114,64 0,16 0,16

HALMA PLC - 30.618,00 GBP 4,594 173.417,69 0,17 0,17

NEW BRITAIN PALM OIL LTD - 24.742,00 GBP 5,050 154.046,48 0,15 0,15

PENNON GROUP PLC - 23.219,00 GBP 6,250 178.915,98 0,18 0,18

RIO TINTO PLC - 10.979,00 GBP 35,115 475.314,49 0,47 0,47

ROTORK PLC - 4.788,00 GBP 25,450 150.233,76 0,15 0,15

ROYAL DUTCH SHELL PLC -B- 18.286,00 GBP 21,750 490.347,06 0,48 0,48

SEVERN TRENT - 14.033,00 GBP 15,740 272.320,82 0,27 0,27

STANDARD CHARTERED - 7.836,00 GBP 15,735 152.015,12 0,15 0,15

TATE&LYLE PLC - 16.590,00 GBP 7,620 155.857,23 0,15 0,15

UNILEVER PLC - 5.512,00 GBP 23,660 160.786,49 0,16 0,16

UNITED UTILITIES WATER PLC - 40.479,00 GBP 6,735 336.118,93 0,33 0,33

VODAFONE GROUP PLC - 126.488,00 GBP 1,545 240.858,98 0,24 0,24

WEIR GROUP PLC (THE) - 6.781,00 GBP 18,790 157.089,13 0,15 0,15

XSTRATA PLC - 15.322,00 GBP 10,590 200.049,29 0,20 0,20

U.S.A.

ACCENTURE LTD "A" 3.197,00 USD 66,500 161.256,45 0,16 0,16

ADOBE SYSTEMS - 6.253,00 USD 37,680 178.711,35 0,18 0,18

AECOM TECHNOLOGY CORP - 8.833,00 USD 23,800 159.454,95 0,16 0,16

AES CORP - 18.831,00 USD 10,700 152.830,48 0,15 0,15

AETNA INC NEW 4.540,00 USD 46,300 159.437,20 0,16 0,16

AGILENT TECHNOLOGIES - 4.925,00 USD 40,940 152.935,00 0,15 0,15

ALICO INC - 5.561,00 USD 36,630 154.505,03 0,15 0,15

ALTERA CORP. - 6.261,00 USD 34,440 163.553,43 0,16 0,16

AMAZON COMM. INC. - 1.705,00 USD 251,140 324.782,84 0,32 0,32

AMERICAN TOWER CORP CL A 2.730,00 USD 77,270 160.002,35 0,16 0,16

AMERICAN WATER WORKS INC. - 8.937,00 USD 37,130 251.692,06 0,25 0,25

AMERISOURCEBERGEN CORP - 4.657,00 USD 43,180 152.525,23 0,15 0,15

AMGEN - 109,00 USD 86,320 7.136,59 0,01 0,01

ANADARKO PETROLEUM - 2.685,00 USD 74,310 151.336,73 0,15 0,15

APACHE CORP. - 2.836,00 USD 78,500 168.860,74 0,17 0,17

APPLE INC - 2.254,00 USD 533,030 911.293,70 0,90 0,89

AQUA AMERICA INC - 8.097,00 USD 25,420 156.117,82 0,15 0,15

BAKER HUGHES INC - 4.861,00 USD 40,840 150.578,91 0,15 0,15

BAXTER INTL INC - 3.820,00 USD 66,660 193.144,11 0,19 0,19

BECTON DICKINSON - 2.660,00 USD 78,190 157.755,92 0,16 0,16

BIOGEN IDEC INC - 1.586,00 USD 146,670 176.440,09 0,17 0,17

BOEING - 2.760,00 USD 75,360 157.762,14 0,16 0,16

BOSTON SCIENTIFIC - 38.285,00 USD 5,730 166.393,39 0,16 0,16

CALGON CARBON CORP - 15.048,00 USD 14,180 161.848,18 0,16 0,16

CALIFORNIA WATER SERVICE GROUP - 14.563,00 USD 18,350 202.693,45 0,20 0,20

CAMERON INTERNATIONAL CORP - 3.755,00 USD 56,460 160.806,51 0,16 0,16

CATERPILLAR INC - 2.414,00 USD 89,580 164.021,63 0,16 0,16

CERNER CORP - 2.520,00 USD 77,640 148.401,70 0,15 0,15

CHEVRON CORP - 5.164,00 USD 108,140 423.570,21 0,42 0,42

CIGNA CORP. - 3.725,00 USD 53,460 151.045,59 0,15 0,15

CISCO SYSTEMS INC - 31.068,00 USD 19,650 463.050,82 0,46 0,45

CIT GROUP INC. - 5.255,00 USD 38,640 154.014,87 0,15 0,15

CITRIX SYSTEMS INC - 3.214,00 USD 65,750 160.285,57 0,16 0,16

COACH INC. - 3.951,00 USD 55,510 166.353,16 0,16 0,16

COGNIZANT TECHNOLOGY SOLUTIONS CORP. - 3.014,00 USD 74,050 169.286,03 0,17 0,17

COMCAST CORP -A- 8.417,00 USD 37,380 238.643,40 0,23 0,23

COVANCE INC - 3.418,00 USD 57,770 149.770,83 0,15 0,15

CSX - 9.990,00 USD 19,730 149.501,44 0,15 0,15

CUBIST PHARMACEUTICALS INC - 5.673,00 USD 42,060 180.981,78 0,18 0,18

DANAHER CORPORATION - 5.027,00 USD 55,900 213.144,19 0,21 0,21

DEERE & COMPANY - 2.354,00 USD 86,420 154.302,70 0,15 0,15

DENTSPLY INTERNATIONAL INC - 4.951,00 USD 39,610 148.747,81 0,15 0,15

DEVON ENERGY - 3.718,00 USD 52,040 146.757,22 0,14 0,14

EATON CORP. - 4.261,00 USD 54,200 175.171,57 0,17 0,17

EBAY INC. - 5.771,00 USD 51,020 223.328,60 0,22 0,22

EDWARDS LIFESCIENCES CORP. - 2.173,00 USD 90,170 148.619,09 0,15 0,15

EMC CORPORATION - 9.444,00 USD 25,300 181.229,67 0,18 0,18

EMERSON ELECTRIC CO - 5.179,00 USD 52,960 208.039,93 0,20 0,20

EOG RESOURCES INC. - 1.814,00 USD 120,790 166.196,19 0,16 0,16

EQUINIX INC - 1.091,00 USD 206,200 170.634,25 0,17 0,17

EXPEDITORS INTL OF WASHINGTON INC. - 4.856,00 USD 39,550 145.672,63 0,14 0,14

EXPRESS SCRIPTS INC. "A" 9.013,00 USD 54,000 369.161,10 0,36 0,36

EXXON MOBIL CORP - 7.389,00 USD 86,550 485.071,26 0,48 0,48

FLOWSERVE CORP - 2.115,00 USD 146,800 235.499,09 0,23 0,23

FORD MOTOR CY - 18.178,00 USD 12,950 178.553,63 0,18 0,18

FREEPORT-MCMORAN COPPER & GOLD, INC. - 10.948,00 USD 34,200 283.996,97 0,28 0,28

FRESH DEL MONTE PRODUCE INC - 7.081,00 USD 26,350 141.523,32 0,14 0,14

F5 NETWORKS INC - 2.299,00 USD 97,150 169.408,26 0,17 0,17

GENERAL ELEC CAP CORP - 9.832,00 USD 20,990 156.533,43 0,15 0,15

GILEAD SCIENCES - 3.404,00 USD 73,450 189.641,84 0,19 0,19

GOOGLE INC -A- 1.191,00 USD 709,370 640.821,96 0,63 0,63

HALLIBURTON CY - 9.035,00 USD 34,690 237.730,70 0,23 0,23

HESS CORP - 3.834,00 USD 52,960 154.011,41 0,15 0,15

HOME DEPOT - 4.746,00 USD 61,850 222.648,74 0,22 0,22

HUMANA INC. - 3.230,00 USD 68,630 168.139,34 0,17 0,17

I.B.M. - 2.895,00 USD 191,550 420.613,81 0,41 0,41

IDEX CORPORATION - 6.623,00 USD 46,530 233.744,08 0,23 0,23

ILLUMINA INC - 3.761,00 USD 55,590 158.581,61 0,16 0,16

INTEL CORP - 12.638,00 USD 20,630 197.756,33 0,19 0,19

INTUITIVE SURGICAL INC - 569,00 USD 490,370 211.635,72 0,21 0,21

ITRON INC - 5.905,00 USD 44,550 199.535,61 0,20 0,20

JOHNSON & JOHNSON - 6.319,00 USD 70,100 335.984,45 0,33 0,33

JOHNSON CONTROLS - 7.255,00 USD 30,700 168.938,49 0,17 0,17

KELLOGG CO. - 3.697,00 USD 55,850 156.612,14 0,15 0,15

LINKEDIN CORPORATION - 1.780,00 USD 114,820 155.020,93 0,15 0,15

LOWE'S CIE - 5.694,00 USD 35,520 153.406,31 0,15 0,15

MACY'S INC - 5.156,00 USD 39,020 152.599,45 0,15 0,15

MARATHON OIL CORP. - 6.401,00 USD 30,660 148.858,21 0,15 0,15

MASTERCARD INC - 457,00 USD 491,280 170.293,51 0,17 0,17

MC DONALD'S CORP - 2.526,00 USD 88,210 169.006,72 0,17 0,17

MCKESSON CORP - 3.320,00 USD 96,960 244.165,05 0,24 0,24

MEDTRONIC INC - 6.530,00 USD 41,020 203.170,96 0,20 0,20

MERCK & CO - 14.964,00 USD 40,940 464.673,97 0,46 0,46

METLIFE INC. - 7.822,00 USD 32,940 195.431,34 0,19 0,19

MICROSOFT CORP - 20.862,00 USD 26,730 422.968,19 0,42 0,41

MONSANTO NEW 2.413,00 USD 94,650 173.233,05 0,17 0,17

MYLAN LABORATORIES - 8.173,00 USD 27,480 170.353,49 0,17 0,17

NATIONAL-OILWELL VARCO INC - 3.603,00 USD 68,350 186.790,84 0,18 0,18

NEWMONT MINING CORP HOLDING CO - 7.920,00 USD 46,440 278.978,16 0,27 0,27

NIKE "B" 4.088,00 USD 51,600 159.997,57 0,16 0,16

NOBLE ENERGY INC - 2.066,00 USD 101,740 159.431,77 0,16 0,16

OCCID. PETROLEUM - 2.906,00 USD 76,610 168.862,76 0,17 0,17

ORACLE CORP - 13.683,00 USD 33,320 345.811,26 0,34 0,34

PFIZER - 25.554,00 USD 25,080 486.115,23 0,48 0,48

PICO HOLDINGS INC - 10.405,00 USD 20,270 159.973,72 0,16 0,16

PLUM CREEK TIMBER CO INC - 4.832,00 USD 44,370 162.618,20 0,16 0,16

PRICELINE.COM INC. - 425,00 USD 621,200 200.250,30 0,20 0,20

QUALCOMM CORP - 10.655,00 USD 62,020 501.231,11 0,49 0,49

RAYONIER INC - 4.361,00 USD 51,830 171.443,14 0,17 0,17

REGENRON PHARMACEUTICALS - 1.138,00 USD 171,070 147.662,06 0,15 0,15

SALESFORCE.COM INC. - 1.379,00 USD 168,100 175.826,68 0,17 0,17

SANDISK CORP - 4.713,00 USD 43,560 155.717,75 0,15 0,15

SBA COMMUNICATIONS CORP. - 2.864,00 USD 71,020 154.278,88 0,15 0,15

SCHLUMBERGER - 7.234,00 USD 69,290 380.191,03 0,37 0,37

SOUTHWESTERN ENERGY CO - 5.925,00 USD 33,410 150.147,34 0,15 0,15

SPRINT NEXTEL CORP - 36.612,00 USD 5,670 157.456,04 0,16 0,15

SPX CORPORATION - 3.950,00 USD 70,150 210.173,32 0,21 0,21

ST JUDE MEDICAL INC. - 5.530,00 USD 36,140 151.588,44 0,15 0,15

STRYKER CORPORATION - 3.780,00 USD 54,820 157.175,06 0,15 0,15

SYMANTEC CORPORATION - 10.742,00 USD 18,810 153.259,27 0,15 0,15

TERADATA CORP - 3.198,00 USD 61,890 150.124,56 0,15 0,15

THERMO ELECTRONIC - 3.453,00 USD 63,780 167.045,16 0,16 0,16

TYSON FOODS INC -A- 10.199,00 USD 19,400 150.076,30 0,15 0,15

UNITEDHEALTH GROUP INC. - 12.393,00 USD 54,240 509.857,65 0,50 0,50

VALMONT INDUSTRIES - 1.472,00 USD 136,550 152.458,74 0,15 0,15

VARIAN MEDICAL SYSTEMS - 2.818,00 USD 70,240 150.133,74 0,15 0,15

VISA INC - 1.942,00 USD 151,580 223.276,97 0,22 0,22

WALT DISNEY - 5.337,00 USD 49,790 201.554,33 0,20 0,20

WATERS CORP - 2.294,00 USD 87,120 151.587,74 0,15 0,15

WELLPOINT INC - 3.871,00 USD 60,920 178.869,33 0,18 0,18

XYLEM INC/NY - 9.668,00 USD 27,100 198.727,85 0,20 0,20

ZIMMER HOLDINGS INC. - 2.929,00 USD 66,660 148.094,01 0,15 0,15

3M CO - 2.208,00 USD 92,850 155.501,21 0,15 0,15

Zaire

GROWTHPOINT PROPERTIES LTD - 71.992,00 ZAR 24,500 157.682,42 0,16 0,16

Total shares 95.520.357,83 93,85 93,60

Options and futures

Exchange-listed futures

U.S.A.

STAND & POORS EMINI MAR 13 5,00 USD 1.420,000 269.265,78 0,27 0,26

Suspense accounts (futures)

U.S.A.

STAND & POORS MAR 13 -360.312,50 USD 1,000 -273.295,28 -0,27 -0,27

Total options and futures -4.029,50 0,00 0,00

Forward contracts EUR -3.064,83 0,00

TOTAL SECURITIES PORTFOLIO 101.782.395,58 100,00 99,73

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 2.366.187,50 EUR 1,000 2.366.187,50 2,32

TOTAL RECEIVED COLLATERAL 2.366.187,50 2,32

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP AUD 7.071,15 AUD 1,000 5.568,27 0,01

KBC GROUP CAD 19.731,32 CAD 1,000 15.031,10 0,02

KBC GROUP CHF 9.911,08 CHF 1,000 8.212,69 0,01

KBC GROUP CZK 159.053,00 CZK 1,000 6.337,78 0,01

KBC GROUP DKK 67.108,88 DKK 1,000 8.994,62 0,01

KBC GROUP EURO -7.246,71 EUR 1,000 -7.246,71 -0,01

KBC GROUP GBP -119.881,10 GBP 1,000 -147.800,64 -0,15

KBC GROUP HKD -38.418,57 HKD 1,000 -3.759,63 0,00

KBC GROUP HUF 829.020,12 HUF 1,000 2.846,71 0,00

KBC GROUP JPY -770.557,00 JPY 1,000 -6.759,27 -0,01

KBC GROUP MXN 60.296,43 MXN 1,000 3.521,82 0,00

KBC GROUP MYR 426,69 MYR 1,000 105,83

KBC GROUP NOK 108.100,02 NOK 1,000 14.733,14 0,01

KBC GROUP NZD 1.641,52 NZD 1,000 1.027,17 0,00

KBC GROUP PLN 94.362,02 PLN 1,000 23.126,25 0,02

KBC GROUP SEK 105.306,30 SEK 1,000 12.278,04 0,01

KBC GROUP SGD 12.961,12 SGD 1,000 8.047,89 0,01

KBC GROUP TRY 41.060,96 TRY 1,000 17.450,47 0,02

KBC GROUP USD 258.247,05 USD 1,000 195.879,13 0,19

KBC GROUP ZAR 984.833,00 ZAR 1,000 88.043,14 0,09

Total demand accounts 245.637,80 0,24

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 20.874,48 EUR 1,000 20.874,48 0,02

KBC GROUP USD FUT REK 39.592,01 USD 1,000 30.030,35 0,03

Total managed futures accounts 50.904,83 0,05

TOTAL CASH AT BANK AND IN HAND 296.542,63 0,29

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP BRL RECEIVABLE 116.102,27 BRL 1,000 43.008,81 0,04

KBC GROUP EUR RECEIVABLE 4.270,46 EUR 1,000 4.270,46 0,00

KBC GROUP IDR RECEIVABLE 1.923.388.354,19 IDR 1,000 151.375,19 0,15

KBC GROUP KRW RECEIVABLE 55.625.815,99 KRW 1,000 39.410,40 0,04

KBC GROUP THB RECEIVABLE 7.462.173,70 THB 1,000 185.028,32 0,18

KBC GROUP TWD TE ONTVANGEN 15.289.243,10 TWD 1,000 399.353,35 0,39

KBC GROUP WHT TO BE RECOVERED EUR 823,65 EUR 1,000 823,65 0,00

Netherlands

KBC CLEARING NV DEKKING USD 17.500,00 USD 1,000 13.273,67 0,01

Total receivables 836.543,85 0,82

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-2.366.187,50 EUR 1,000 -2.366.187,50 -2,32

KBC GROUP EUR PAYABLE -72.503,86 EUR 1,000 -72.503,86 -0,07

KBC GROUP IDR PAYABLE -3.904.137.371,10 IDR 1,000 -307.264,81 -0,30

KBC GROUP THB TE BETALEN -7.756.110,11 THB 1,000 -192.316,62 -0,19

KBC GROUP TWD TE BETALEN -8.789.737,50 TWD 1,000 -229.586,98 -0,23

Payables -3.167.859,77 -3,10

TOTAL RECEIVABLES AND PAYABLES -2.331.315,92 -2,28

OTHER

Interest receivable EUR 83.857,37 0,08

Accrued interest EUR 2.869,60 0,00

Expenses payable EUR -146.291,11 -0,14

TOTAL OTHER -59.564,14 -0,06

TOTAL NET ASSETS 102.054.245,65 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Argentinia 0,02 0,00 0,00 0,00 Australia 1,98 1,70 1,36 1,59 Austria 0,66 0,38 0,32 0,51 Belgium 1,24 1,32 0,47 0,38 Bermuda 0,20 0,23 0,25 0,48 Brazil 6,77 5,67 5,36 6,20 Canada 4,45 3,88 3,47 3,60 Switzerland 2,72 2,47 2,25 2,74 Chile 0,61 0,00 0,54 0,75 China 6,10 6,24 6,27 6,47 Colombia 0,19 0,00 0,47 0,49 Czech Republic 0,45 0,62 0,29 0,30 Cayman Islands 0,81 0,82 0,81 0,80 Germany 2,26 1,64 1,72 2,09 Denmark 0,47 0,49 0,29 0,37 Egypt 0,04 0,00 0,00 0,00 Spain 0,48 0,37 0,16 0,16 Finland 0,23 0,16 0,15 0,00 France 3,45 3,03 3,04 2,65 U.K. 5,60 6,35 5,60 5,91 Greece 0,01 0,10 0,00 0,00 Hong Kong 4,55 5,02 4,84 3,96 Hungary 0,29 0,38 0,15 0,15 India 4,64 3,92 4,13 3,88 Indonesia 0,86 1,08 1,42 1,57 Ireland 0,09 0,60 0,57 0,43 Israel 0,20 0,00 0,35 0,32 Italy 0,77 0,62 0,63 0,67 Jersey/The Channel Islands 0,24 0,21 0,34 0,21 Japan 1,84 2,66 4,01 4,11 South Korea 5,14 5,42 5,26 6,25 Croatia 0,01 0,00 0,00 0,00 Luxembourg 0,03 0,00 0,00 0,00 Mexico 1,69 1,48 1,37 1,70 Malaysia 2,29 2,14 1,69 1,55 Netherlands 0,46 0,39 0,63 0,52 Norway 0,52 0,40 0,32 0,22 New Zealand 0,01 0,00 0,00 0,00 Peru 0,13 0,33 0,51 0,50 Philippines 0,27 0,31 0,46 0,51 Poland 1,21 0,80 0,92 0,62 Portugal 0,09 0,00 0,15 0,15 Romania 0,07 0,00 0,00 0,00

Russia 3,46 2,92 2,38 2,55 Singapore 0,74 0,53 0,62 0,38 Sweden 0,74 0,61 0,30 0,57 Thailand 0,55 1,04 1,12 1,30 Turkey 1,55 1,31 1,90 1,10 Taiwan 3,53 3,99 3,84 3,61 U.S.A. 23,37 25,79 27,08 25,59 South Africa 1,89 2,58 2,04 1,94 Zaire 0,03 0,00 0,15 0,15 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 37,11 34,94 35,15 34,64 Consum(cycl) 12,79 11,49 9,51 9,59 Cons.goods 6,59 8,48 10,15 10,22 Pharma 9,29 11,61 10,03 9,79 Financials 13,12 10,54 11,21 11,42 Technology 11,32 11,95 14,58 13,74 Telecomm. 3,07 3,38 2,85 3,59 Utilities 5,83 6,76 5,58 5,96 Real est. 0,84 0,85 0,94 1,05 Unit trusts 0,02 0,00 0,00 0,00 Various 0,02 0,00 0,00 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 ARS 0,02 0,00 0,00 0,00 AUD 1,97 1,92 1,31 1,44 BRL 6,48 5,66 5,18 6,22 CAD 4,21 3,92 3,04 2,88 CHF 2,71 2,49 1,83 1,92 CNY 2,20 1,73 1,72 1,76 COP 0,10 0,00 0,00 0,00 CZK 0,54 0,73 0,29 0,31 DKK 0,47 0,49 0,29 0,38 EUR 9,82 7,71 7,69 7,36 GBP 5,37 6,17 5,59 5,59 HKD 9,08 10,45 9,25 9,66 HRK 0,01 0,00 0,00 0,00 HUF 0,29 0,40 0,17 0,16 IDR 1,07 1,14 1,55 1,39 ILS 0,00 0,00 0,15 0,32 INR 4,34 3,66 4,00 3,96 JPY 1,85 2,69 4,00 4,09 KRW 5,12 5,41 5,24 6,27 MXN 1,36 1,12 1,01 1,30 MYR 2,28 2,13 1,69 1,55 NOK 0,54 0,40 0,32 0,24 NZD 0,01 0,00 0,00 0,00 PEN 0,02 0,00 0,00 0,00 PHP 0,27 0,31 0,46 0,51 PLN 1,22 0,80 0,92 0,64 RON 0,06 0,00 0,00 0,00 SEK 0,76 0,61 0,31 0,58 SGD 0,75 0,54 0,62 0,39 THB 0,57 1,04 1,11 1,29 TRY 1,54 1,32 1,90 1,11 TWD 3,68 3,72 3,68 3,60 USD 29,37 30,81 34,49 32,91 ZAR 1,92 2,63 2,19 2,17 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND TRENDS (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 86.132.103,87 66.344.348,07 152.476.451,94 Sales 39.311.727,37 42.973.133,44 82.284.860,81 Total 1 125.443.831,24 109.317.481,51 234.761.312,75 Subscriptions 65.251.301,11 47.515.442,44 112.766.743,55 Redemptions 18.370.406,40 24.494.439,55 42.864.845,95 Total 2 83.621.707,51 72.009.881,99 155.631.589,50 Monthly average of total assets

71.139.274,32 94.725.653,37 83.080.495,51

Turnover rate 58,79 % 39,38 % 95,24 %

1st half of year 2nd half of year YearPurchases 86.132.103,87 66.344.348,07 152.476.451,94 Sales 39.311.727,37 42.973.133,44 82.284.860,81 Total 1 125.443.831,24 109.317.481,51 234.761.312,75 Subscriptions 65.251.301,11 47.515.442,44 112.766.743,55 Redemptions 18.370.406,40 24.494.439,55 42.864.845,95 Total 2 83.621.707,51 72.009.881,99 155.631.589,50 Monthly average of total assets

70.079.633,58 93.999.847,61 82.434.523,29

Corrected turnover rate 59,68 % 39,69 % 95,99 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR EUR 2.366.187,50 2.366.187,50 N/A 31.12.2012

KBCCLEAR DEKKING USD USD 17.500,00 13.273,67 N/A 31.12.2012

STPOORS EMINI MAR 13 USD 355.000,00 269.265,78 50,00 19.12.2012

KBC AK-VK USD-EUR 130313-121214 1.30459

USD 360.000,00 273.058,25 N/A 14.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 1.765,27 285,15 29.233,97 1.983,00 176.393,45 14.423,85 190.817,31

2011 - 12 1.024.868,67 156.079,08 904.175,65 138.826,30 297.086,47 31.676,64 328.763,11

2012 - 12 55.445,58 201,00 88.713,69 5.961,41 263.818,36 25.916,23 289.734,60

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 151.140,02 23.089,78 2.551.507,78 162.075,85

2011 - 12 5.925.621,47 818.081,37 66.222.096,85 9.920.798,59

2012 - 12 5.061.272,14 17.251,83 7.999.932,21 501.049,02

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 18.232.295,93 96,11 88,73

2011 - 12 27.266.129,89 83,55 77,14

2012 - 12 27.065.697,25 94,06 86,83

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2012 - 12 1.181.374,94 383.776,76 797.598,18 797.598,18

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2012 - 12 108.024.276,08 34.627.262,50

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2012 - 12 74.988.548,40 94,02

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0167243154 EUR 11.61% 4.62% -2.35% 0.0193 30/04/1998 -3.77%

DIV BE0167244160 EUR 11.60% 4.62% -2.35% 0.0193 30/04/1998 -3.78%

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

Institutional B Shares

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

Classic Shares The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in EUR (ex BEF). 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Dividend on ex-dividend date 28/03/2013: 0.49 EUR net (0.66 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.545% Classic Shares Capitalization: 1.563% Institutional B Shares Capitalization: 1.56% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 36,784 22,640 61.55%

CSFBSAS 17,943 10,865 60.56%

DEUTSCHE 9,895 5,437 54.95%

EQ CSA MACQUARIE 5,842 3,651 62.50%

HSBC 1,851 404 21.81%

MERRILL 5,721 3,427 59.90%

MORGAN STANLEY 16,670 9,900 59.39%

NOMURA 39,325 22,927 58.30%

UBSWDR 9,538 5,910 61.97%

WOOD 231 58 25.00%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The S&P 500 is an equity index computed by Standard & Poor’s that is made up of 500 shares. The dividend is not reinvested. The S&P 500 serves primarily as a continuous indicator of market trends on the US stock markets. The value of the S&P 500 index is calculated on the basis of the market value of the shares of 500 companies at a given point in time, compared to the market value of the shares of 500 similar companies during the reference period from 1941 to 1943. The index is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Standard & Poor’s has all proprietary rights with repect to the index. In no way Standard & Poor’s endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Standard & Poor’s disclaims any liability for the issue and offering of the shares of this undertaking for collective investment The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service.

Name Maximum management feeHorizon-Access Fund China-Classic Shares 1,60 Horizon-Access India Fund-Classic Shares 1,60 KBC Equity Fund-Millennium-Institutional B Shares 1,50 KBC Equity Fund-Millennium-Classic Shares 1,50

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 21.211,49 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

ALL NIPPON AIRWAYS CO LTD JPY 82.999 181,000 131.779,11

BANK PEKAO SA PLN 3.756 167,500 154.187,19

CHINA NATL. BUILDING MATERIAL -H- HKD 139.999 11,340 155.361,12

CHINA OVERS LAND INV HKD 83.999 23,100 189.884,91

CHINA RAILWAY CONSTRUCTIO-H- HKD 198.499 8,810 171.134,90

CLP HOLDINGS HKD 54.499 64,850 345.862,01

KGHM POLSKA MIEDZ SA PLN 3.135 190,000 145.981,91

MAGYAR OLAJ-ES (BUD) HUF 2.224 17755,000 135.592,06

POLSKI KONCERN NAFTO PLN 12.293 49,500 149.132,05

POWSZECHNY ZAKLAD UBEZPIECZEN SA PLN 1.466 437,000 157.008,55

SHANGRI-LA ASIA HKD 54.387 15,440 82.176,33

SONY JPY 15.000 958,000 126.052,63

Total 1.944.152,77

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 1.000.000 EUR 1.070.011,00

OAT FRANCE 2003 4% 25/04/14 EUR 75.000 EUR 80.978,47

FRANCE 2004 1,60% 25/07/2015 EUR 291.000 EUR 373.935,58

OAT FRANCE 2005 3 1/2% 25/04/15 EUR 227.000 EUR 250.261,14

FRANCE - 04/55 4.00 % 25/04 EUR 378.000 EUR 463.262,81

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 114.000 EUR 127.738,48

Total 2.366.187,48 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Euro Cyclicals

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND EURO CYCLICALS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 30 December 1999 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 516.88 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of European companies in cyclical sectors.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. In Europe the debt crisis continued to rage unabated. Five euro countries needed a bail-out from the European emergency funds. Greece twice reached an agreement during the year with its private sector creditors concerning a rescheduling of its bond debts. Spain came into the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. In the EMU real GDP shrank by 0.3% y-o-y. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany fulfilled its traditional role as locomotive of the European economy to a lesser extent than in the recent past. Greater divergence within Europe resulted in a further decline in unemployment in Germany and an alarmingly rapid rise in unemployment in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. Market performance was consequently dictated in 2012 by volatile sentiment. During the first three months the markets were buoyed by relative economic optimism. After the gains slackened in April and May, a fine rally occurred from early June onwards, thereby negating the gloomier economic signals. On 31 December the MSCI All Countries (the broadest world index) in euros was 14.5% higher than at the end of 2011.

Of the traditional markets, Western Europe (MSCI Europe index return index up 18.4% over this period) managed to claw back some of the underperformance built up since the start of the euro crisis in autumn 2009, despite the continuing influence of certain problem files. Evidently the underperformance of European shares had seen such a valuation gap open up against US shares that new episodes in the euro crisis lacked the same impact on the trading floor. Wall Street closed the year up substantially higher on balance (S&P500: +13.4%, Dow Jones: +7.3%), while European investors also benefited from the small increase in the value of the dollar (MSCI USA return in euros: +13,9%). The BEL 20 rose by 18.8%, more or less in line with the performance of other European stock markets. The Belgian banking stocks KBC and Ageas recorded the best performance, while Solvay and AB InBev, which has taken over the Mexican market leader Modelo, were once again star performers. D’Ieteren, Mobistar and especially Delhaize, which is grappling with structural problems in its two main markets, were the two main disappointments during the period under review.

2.1.8 FUTURE POLICY In Europe the budgetary plans, the banks' tighter lending policy and the high level of uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could therefore see a further contraction in European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. The crisis has also brought the realisation that economic governance, as it is now called in Eurospeak, needs to be tackled as a matter of urgency. In concrete terms, this involves measures such as supranational supervision of banks, strict monitoring and sanctioning of budgetary policy, monitoring of pay policy and harmonising European taxation. In the coming months the organisation of the ESM (European Stability Mechanism, which came into operation from 1 October 2012) the installation of the pan-European banking supervision within the ECB (to be in place by 1 March 2014) and the implementation of the Fiscal Stability Treaty (in force since 1 January 2013) will continue to demand considerable energy and diplomatic dexterity. No delays can be permitted in this work to set up a new architecture for the EMU. Since it may be argued that money market rates will not increase rapidly and that bond rates are at an historical low, everything would appear to point to shares as the best investment option in the months ahead. The lack of alternatives is not, of course, sufficient reason to increase the market valuation. For that to happen, investors will need to be more predisposed to taking risk. The present valuation prices in very gloomy scenarios. Based on forecast earnings for 2013, the price-earnings ratio (PE) is 13.5 for the US S&P 500 index and 11.4 for the MSCI Europe. That is 25% and 30% respectively lower than the historical average. Equities are certainly dirt-cheap compared with bonds. The earnings yield – the inverse of the price/earnings ratio – is currently 8.7% for the MSCI Europe, an unprecedented premium of some 740 basis points above German bond yields.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 7.555.205,52 8.484.367,95

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 84.740,19 C. Shares and similar instruments a) Shares 7.592.349,77 8.402.703,13 Of which securities lent 91.222,56 D. Other securities 1.403,89 F. Derivative financial instruments m) Financial indices Futures and forward contracts (+/-) 2.798,09

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 29.972,48 72,84 b) Tax assets 2.273,16 2.328,76 c) Collateral 8.729,57 B. Payables a) Accounts payable (-) -26.984,59 -16.505,22 c) Borrowings (-) -82.766,67 -55.302,30 d) Collateral (-) -84.740,19

V. Deposits and cash at bank and in hand A. Demand balances at banks 40.333,53 143.767,06

VI. Accruals and deferrals A. Expense to be carried forward 1.941,27 B. Accrued income 3.878,13 9.029,98 C. Accrued expense (-) -5.254,18 -15.195,23

TOTAL SHAREHOLDERS' EQUITY 7.555.205,52 8.484.367,95

A. Capital 6.483.123,61 -643.952,87

B. Income equalization -19.208,04 -227.551,13

C. Profit(Loss) carried forward 15.532.989,64

D. Result for the period 1.091.289,95 -6.177.117,69

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 84.740,19

I.A.B Cash at bank and in hand/deposits 8.729,57

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 112.435,59

IX Financial instruments lent 91.222,56

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 840.236,81 -6.766.383,72 D. Other securities -1.300,55 1.602,92 F. Derivative financial instruments l) Financial indices Futures and forward contracts -4.018,41 20.318,27 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 156.643,80 362.177,38

II. Investment income and expenses A. Dividends 241.001,37 755.073,84 B. Interests a) Securities and money market instruments -1.191,30 62.143,06 b) Cash at bank and in hand and deposits 97,68 1.847,63 c) Collateral (+/-) 5,48 C. Interest on borrowings (-) -467,42 -2.534,45

III. Other income B. Other 797,80

IV. Operating expenses A. Investment transaction and delivery costs (-) -9.404,38 -125.315,37 B. Financial expenses (-) -127,88 -2.195,31 C. Custodian's fee (-) -8.647,87 -38.213,45 D. Manager's fee (-) a) Financial management Classic Shares -112.464,07 -387.082,38 b) Administration and accounting management -8.976,23 -24.167,12 E. Administrative expenses (-) -72,49 -68,66 F. Formation and organisation expenses (-) -817,16 -3.319,35 G. Remuneration, social security charges and

pension -7,33

H. Services and sundry goods (-) -2.378,10 -8.095,72 J. Taxes Classic Shares 4.076,37 -4.791,12 K. Other expenses (-) -900,22 -18.910,09

Income and expenditure for the period Subtotal II + III + IV 99.728,30 205.167,46

V. Profit (loss) on ordinary activities before tax 1.091.289,95 -6.177.117,69

VII. Result for the period 1.091.289,95 -6.177.117,69

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 1.072.081,91 9.128.320,82 Profit (loss) brought forward from the previous

financial year 15.532.989,64

Profit for the period available for appropriation 1.091.289,95 -6.177.117,69 Income on the creation of shares (income on the

cancellation of shares) -19.208,04 -227.551,13

II. (Appropriations to) Deductions from capital -1.055.640,97

III. Profit (loss) to be carried forward 9.109.389,20

IV. (Dividends to be paid out) -16.440,94 -18.931,62

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND EURO CYCLICALS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Austria

OMV AG (WIEN) 475,00 EUR 27,355 12.993,63 0,17 0,17

VOESTALPINE AG - 626,00 EUR 27,660 17.315,16 0,23 0,23

Belgium

NYRSTAR STRIP VVPR 9.590,00 EUR 0,001 9,59

SOLVAY - 190,00 EUR 109,350 20.776,50 0,27 0,28

UMICORE - 438,00 EUR 41,690 18.260,22 0,24 0,24

UMICORE STRIP VVPR 240,00 EUR 0,001 0,24

Bermuda

SEADRILL LTD - 1.038,00 NOK 203,300 28.761,03 0,38 0,38

Denmark

A.P. MOLLER-MAERSK A/S -B- 6,00 DKK 42.600,000 34.258,14 0,45 0,45

DSV DE SAMMENSLUTTEDE VOGNMAEND - 1.085,00 DKK 145,700 21.188,11 0,28 0,28

NOVOZYMES A/S "B" 788,00 DKK 159,200 16.814,05 0,22 0,22

Finland

KONE CORP. - 570,00 EUR 55,800 31.806,00 0,42 0,42

METSO OYJ (HEL) 666,00 EUR 32,040 21.338,64 0,28 0,28

NOKIAN RENKAAT OYJ - 566,00 EUR 30,100 17.036,60 0,22 0,23

STORA ENSO OYJ "R" 1.640,00 EUR 5,245 8.601,80 0,11 0,11

UPM-KYMMENE CORP - 1.786,00 EUR 8,805 15.725,73 0,21 0,21

WARTSILA CORPORATION "B" 614,00 EUR 32,720 20.090,08 0,27 0,27

France

ACCOR - 568,00 EUR 26,695 15.162,76 0,20 0,20

ADP - 215,00 EUR 58,370 12.549,55 0,17 0,17

AIR LIQUIDE (L') - 1.128,00 EUR 95,050 107.216,40 1,41 1,42

ALSTOM - 650,00 EUR 30,135 19.587,75 0,26 0,26

ARKEMA - 264,00 EUR 79,210 20.911,44 0,28 0,28

BOUYGUES - 719,00 EUR 22,400 16.105,60 0,21 0,21

BUREAU VERITAS SA - 171,00 EUR 84,650 14.475,15 0,19 0,19

CHRISTIAN DIOR - 210,00 EUR 128,250 26.932,50 0,36 0,36

COMPAGNIE GENERALE DE GEOPHYSIQUE SA - 508,00 EUR 22,590 11.475,72 0,15 0,15

EDENRED - 819,00 EUR 23,300 19.082,70 0,25 0,25

GROUPE EUROTUNNEL SA - 2.683,00 EUR 5,840 15.668,72 0,21 0,21

LAFARGE - 645,00 EUR 48,230 31.108,35 0,41 0,41

LAGARDERE S.C.A. - 531,00 EUR 25,285 13.426,34 0,18 0,18

LEGRAND (PAR) 1.017,00 EUR 31,875 32.416,88 0,43 0,43

LVMH-MOET H.L.VUIT. - 914,00 EUR 138,800 126.863,20 1,67 1,68

MICHELIN (PAR) 682,00 EUR 71,590 48.824,38 0,64 0,65

PINAULT-PRINTEMPS-REDOUTE - 258,00 EUR 140,850 36.339,30 0,48 0,48

PUBLICIS GROUPE SA - 307,00 EUR 45,250 13.891,75 0,18 0,18

RENAULT (PAR) 682,00 EUR 40,685 27.747,17 0,37 0,37

SAFRAN SA (PAR) 820,00 EUR 32,595 26.727,90 0,35 0,35

SAINT GOBAIN - 1.500,00 EUR 32,220 48.330,00 0,64 0,64

SCHNEIDER ELECTRIC SA - 1.875,00 EUR 54,830 102.806,25 1,35 1,36

SODEXHO ALLIANCE - 297,00 EUR 63,720 18.924,84 0,25 0,25

TECHNIP SA (PAR) 376,00 EUR 86,840 32.651,84 0,43 0,43

THALES - 548,00 EUR 26,245 14.382,26 0,19 0,19

TOTAL - 7.354,00 EUR 39,010 286.879,54 3,78 3,80

VALLOUREC SA - 318,00 EUR 39,490 12.557,82 0,17 0,17

VINCI S.A. - 1.605,00 EUR 35,960 57.715,80 0,76 0,76

Germany

ADIDAS AG - 745,00 EUR 67,330 50.160,85 0,66 0,66

BASF SE - 3.247,00 EUR 71,150 231.024,05 3,04 3,06

BAYERISCHE MOTOREN WERKE AG - 1.351,00 EUR 72,930 98.528,43 1,30 1,30

BRENNTAG AG - 174,00 EUR 99,430 17.300,82 0,23 0,23

CONTINENTAL AG - 267,00 EUR 87,590 23.386,53 0,31 0,31

DAIMLER AG - 3.433,00 EUR 41,320 141.851,56 1,87 1,88

DEUTSCHE LUFTHANSA AG REG 1.301,00 EUR 14,240 18.526,24 0,24 0,25

DEUTSCHE POST AG - 2.313,00 EUR 16,600 38.395,80 0,51 0,51

GEA AG - 865,00 EUR 24,470 21.166,55 0,28 0,28

HEIDELBERGCEMENT AG - 504,00 EUR 45,830 23.098,32 0,30 0,31

HEIDELBERGCEMENT AG STRIP-VVPR 945,00 EUR 0,010 9,45

K+S AG (FRA) 656,00 EUR 35,000 22.960,00 0,30 0,30

KABEL DEUTSCHLAND HOLDING AG - 313,00 EUR 56,570 17.706,41 0,23 0,23

LANXESS - 291,00 EUR 66,270 19.284,57 0,25 0,26

LINDE AG - 653,00 EUR 132,000 86.196,00 1,14 1,14

MAN AG - 172,00 EUR 80,750 13.889,00 0,18 0,18

PORSCHE AUTOMOBIL HOLDING SE PREF 591,00 EUR 61,700 36.464,70 0,48 0,48

SIEMENS AG REG 2.905,00 EUR 82,200 238.791,00 3,15 3,16

THYSSENKRUPP AG - 1.682,00 EUR 17,760 29.872,32 0,39 0,40

VOLKSWAGEN AG - 105,00 EUR 162,750 17.088,75 0,23 0,23

VOLKSWAGEN AG PREF 519,00 EUR 172,150 89.345,85 1,18 1,18

Ireland

C.R.H. PLC - 2.692,00 EUR 15,300 41.187,60 0,54 0,55

Italy

ATLANTIA SPA - 145,00 EUR 13,670 1.982,15 0,03 0,03

ENI - 9.086,00 EUR 18,340 166.637,24 2,19 2,21

FIAT INDUSTRIAL SPA - 2.923,00 EUR 8,255 24.129,37 0,32 0,32

FIAT SPA - 3.727,00 EUR 3,790 14.125,33 0,19 0,19

LUXOTTICA GROUP SPA - 641,00 EUR 31,070 19.915,87 0,26 0,26

PRYSMIAN SPA - 1.070,00 EUR 15,010 16.060,70 0,21 0,21

SAIPEM (MIL) 1.061,00 EUR 29,300 31.087,30 0,41 0,41

Jersey/The Channel Islands

RANDGOLD RESOURCES LTD - 306,00 GBP 59,500 22.447,29 0,30 0,30

WOLSELEY PLC - 1.008,00 GBP 29,000 36.039,95 0,48 0,48

Luxembourg

ARCELORMITTAL - 3.513,00 EUR 12,935 45.440,66 0,60 0,60

SES GLOBAL - 1.117,00 EUR 21,705 24.244,49 0,32 0,32

SUBSEA 7 SA - 1.348,00 NOK 132,100 24.269,59 0,32 0,32

TENARIS SA - 1.712,00 EUR 15,580 26.672,96 0,35 0,35

Netherlands

A.K.Z.O. NOBEL - 939,00 EUR 49,745 46.710,56 0,62 0,62

EUROPEAN AERONAUTIC DEF.&SPACE - 1.385,00 EUR 29,500 40.857,50 0,54 0,54

FUGRO NV CVA 339,00 EUR 44,520 15.092,28 0,20 0,20

KONINKLIJKE D.S.M. NV (AMS) 369,00 EUR 45,790 16.896,51 0,22 0,22

KONINKLIJKE PHILIPS ELECTRONICS N.V. - 3.648,00 EUR 19,895 72.576,96 0,96 0,96

RANDSTAD HOLDING (AMS) 627,00 EUR 27,805 17.433,74 0,23 0,23

REED ELSEVIER NV - 2.830,00 EUR 11,185 31.653,55 0,42 0,42

VOPAK (KON.) (AMS) 87,00 EUR 53,310 4.637,97 0,06 0,06

WOLTERS KLUWER - 1.197,00 EUR 15,475 18.523,58 0,24 0,25

Norway

ORKLA ASA "A" 3.940,00 NOK 48,500 26.043,99 0,34 0,35

STATOIL - 3.746,00 NOK 139,000 70.966,31 0,94 0,94

STATOILHYDRO ASA - 4.706,00 NOK 27,880 17.881,93 0,24 0,24

YARA INTL ASA - 722,00 NOK 273,800 26.942,65 0,36 0,36

Portugal

GALP ENERGIA SGPS SA - 1.237,00 EUR 11,760 14.547,12 0,19 0,19

Spain

ABERTIS INFRAESTRUCTURAS - 1.190,00 EUR 12,420 14.779,80 0,20 0,20

ACTIVIDADES CONSTRUCY SERV - 494,00 EUR 19,040 9.405,76 0,12 0,12

FERROVIAL SA - 1.997,00 EUR 11,200 22.366,40 0,30 0,30

INDUSTRIA DE DISENO TEXTIL SA - 820,00 EUR 105,500 86.510,00 1,14 1,15

REPSOL INTL FINANCE - 3.038,00 EUR 15,335 46.587,73 0,61 0,62

ZARDOYA OTIS S.A. (MAD) 479,00 EUR 10,800 5.173,20 0,07 0,07

Sweden

ALFA LAVAL - 1.357,00 SEK 135,300 21.406,83 0,28 0,28

ASSA ABLOY AB "B" 943,00 SEK 242,900 26.706,31 0,35 0,35

ATLAS COPCO AB "A" 3.939,00 SEK 178,300 81.886,45 1,08 1,08

BOLIDEN AB - 1.488,00 SEK 122,100 21.183,29 0,28 0,28

ELECTROLUX "B" 267,00 SEK 170,500 5.307,75 0,07 0,07

HENNES&MAURITZ "B" 3.321,00 SEK 224,500 86.928,05 1,15 1,15

LUNDIN PETROLEUM AB - 639,00 SEK 149,500 11.138,25 0,15 0,15

S.K.F. B FRIA 1.264,00 SEK 163,200 24.051,49 0,32 0,32

SANDVIK FRIA - 3.977,00 SEK 103,500 47.992,20 0,63 0,64

SCANIA B 1.290,00 SEK 134,300 20.199,49 0,27 0,27

SKANSKA AB "B" 1.285,00 SEK 106,200 15.911,18 0,21 0,21

VOLVO TREASURY AB "B" 5.066,00 SEK 88,800 52.450,89 0,69 0,69

Switzerland

ABB LTD - 7.868,00 CHF 18,750 122.244,78 1,61 1,62

ADECCO SA CHESEREX REG 478,00 CHF 48,040 19.028,11 0,25 0,25

COMPAGNIE FINANCIERE RICHEMONT "A" 1.864,00 CHF 71,400 110.283,06 1,45 1,46

GEBERIT AG - 144,00 CHF 201,400 24.031,82 0,32 0,32

GIVAUDAN (NOM) 32,00 CHF 963,000 25.535,30 0,34 0,34

HOLCIM LTD (NOM) 955,00 CHF 66,900 52.941,25 0,70 0,70

KUEHNE & NAGEL INT'L AG - 169,00 CHF 110,000 15.404,38 0,20 0,20

SCHINDLER-HLDG PART.BON 232,00 CHF 132,000 25.376,20 0,33 0,34

SGS SA (REG) 18,00 CHF 2.026,000 30.218,76 0,40 0,40

SIKA AG - 10,00 CHF 2.110,000 17.484,26 0,23 0,23

SYNGENTA (NOM) 290,00 CHF 366,600 88.095,79 1,16 1,17

THE SWATCH GROUP AG - 140,00 CHF 461,200 53.503,48 0,71 0,71

U.K.

AGGREKO PLC - 959,00 GBP 17,400 20.572,80 0,27 0,27

AMEC - 772,00 GBP 10,030 9.546,49 0,13 0,13

ANGLO AMERICAN PLC PLC 4.968,00 GBP 18,940 116.007,79 1,53 1,54

ANTOFAGASTA PLC - 1.395,00 GBP 13,240 22.771,30 0,30 0,30

BABCOCK INTERNATIONAL GROUP - 1.783,00 GBP 9,655 21.224,10 0,28 0,28

BAE SYSTEMS PLC - 11.884,00 GBP 3,369 49.361,60 0,65 0,65

BALFOUR BEATTY PLC - 3.563,00 GBP 2,737 12.023,09 0,16 0,16

BG GROUP PLC - 11.908,00 GBP 10,125 148.648,13 1,96 1,97

BILLITON PLC - 7.596,00 GBP 21,295 199.428,95 2,63 2,64

BP PLC - 66.638,00 GBP 4,248 349.005,33 4,60 4,63

BRITISH SKY BROADCAST - 3.729,00 GBP 7,670 35.262,52 0,46 0,47

BUNZL - 1.680,00 GBP 10,090 20.899,03 0,28 0,28

BURBERRY GROUP PLC - 1.632,00 GBP 12,260 24.668,13 0,33 0,33

CAPITA GROUP PLC - 2.243,00 GBP 7,550 20.878,62 0,28 0,28

CARNIVAL PLC PLC 775,00 GBP 23,580 22.530,51 0,30 0,30

COBHAM - 5.893,00 GBP 2,208 16.042,10 0,21 0,21

COMPASS GROUP - 6.803,00 GBP 7,250 60.808,47 0,80 0,81

EURASAIN NATURAL RESOURCES COR - 1.435,00 GBP 2,840 5.024,53 0,07 0,07

EXPERIAN GROUP LTD - 2.986,00 GBP 9,800 36.077,92 0,48 0,48

FRESNILLO PLC - 618,00 GBP 18,470 14.072,81 0,19 0,19

GLENCORE INTERNATIONAL PLC - 4.083,00 GBP 3,513 17.684,11 0,23 0,23

GROUP 4 SECURICOR PLC - 5.048,00 GBP 2,565 15.963,65 0,21 0,21

INTERCONTINENTAL HOTELS GROUP PLC - 1.117,00 GBP 17,070 23.507,82 0,31 0,31

INTERTEK GROUP PLC - 789,00 GBP 30,990 30.145,62 0,40 0,40

ITV PLC - 16.334,00 GBP 1,052 21.185,26 0,28 0,28

JOHNSON MATTHEY PLC - 1.009,00 GBP 23,760 29.557,19 0,39 0,39

KAZAKHMYS PLC - 1.078,00 GBP 7,780 10.340,08 0,14 0,14

KINGFISHER PLC - 9.874,00 GBP 2,841 34.585,17 0,46 0,46

MARKS&SPENCER - 5.439,00 GBP 3,823 25.635,92 0,34 0,34

NEXT PLC - 706,00 GBP 37,090 32.283,98 0,43 0,43

PEARSON PLC - 3.145,00 GBP 11,880 46.064,11 0,61 0,61

PETROFAC LTD - 852,00 GBP 16,230 17.048,40 0,23 0,23

REED ELSEVIER PLC - 5.048,00 GBP 6,420 39.955,81 0,53 0,53

REXAM PLC - 3.020,00 GBP 4,360 16.233,76 0,21 0,22

RIO TINTO PLC - 4.763,00 GBP 35,115 206.204,84 2,72 2,73

ROLLS ROYCE GROUP PLC - 6.707,00 GBP 8,735 72.229,87 0,95 0,96

ROYAL DUTCH SHELL PLC -A- 13.175,00 GBP 21,220 344.684,38 4,54 4,56

ROYAL DUTCH SHELL PLC -B- 8.916,00 GBP 21,750 239.086,43 3,15 3,17

SERCO GROUP PLC - 2.521,00 GBP 5,350 16.628,47 0,22 0,22

SMITHS GROUP PLC - 1.942,00 GBP 11,910 28.515,87 0,38 0,38

TULLOW OIL INC (LON) 3.421,00 GBP 12,610 53.185,56 0,70 0,70

WEIR GROUP PLC (THE) - 994,00 GBP 18,790 23.027,07 0,30 0,31

WHITBREAD HOLDINGS PLC - 693,00 GBP 24,470 20.907,05 0,28 0,28

WPP GROUP PLC - 4.854,00 GBP 8,880 53.142,05 0,70 0,70

XSTRATA PLC - 7.359,00 GBP 10,590 96.081,63 1,27 1,27

U.S.A.

TRANSOCEAN SEDCO FOREX INC. - 1.307,00 CHF 40,340 43.689,41 0,58 0,58

Total shares 7.592.349,77 99,98 100,49

Rights

Spain

REPSOL YPF SA CP 27/12/2012 3.038,00 EUR 0,462 1.403,56 0,02 0,02

U.K.

ROYAL DUTCH SHELL PLC CP 14/11/12 1,00 GBP 0,271 0,33

Total rights 1.403,89 0,02 0,02

TOTAL SECURITIES PORTFOLIO 7.593.753,66 100,00 100,51

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CAD 908,89 CAD 1,000 692,38 0,01

KBC GROUP CHF 673,06 CHF 1,000 557,72 0,01

KBC GROUP CZK 879,97 CZK 1,000 35,06

KBC GROUP DKK 208,06 DKK 1,000 27,89

KBC GROUP EURO -82.766,67 EUR 1,000 -82.766,67 -1,10

KBC GROUP GBP 9.515,14 GBP 1,000 11.731,16 0,16

KBC GROUP HUF 9.888,94 HUF 1,000 33,96

KBC GROUP JPY 3,00 JPY 1,000 0,03

KBC GROUP NOK 75.771,58 NOK 1,000 10.327,04 0,14

KBC GROUP SEK 438,29 SEK 1,000 51,10 0,00

KBC GROUP USD 7.570,89 USD 1,000 5.742,48 0,08

KBC GROUP ZAR 343,31 ZAR 1,000 30,69

Total demand accounts -53.537,16 -0,71

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 11.104,02 EUR 1,000 11.104,02 0,15

Total managed futures accounts 11.104,02 0,15

TOTAL CASH AT BANK AND IN HAND -42.433,14 -0,56

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 29.344,04 EUR 1,000 29.344,04 0,39

KBC GROUP GBP RECEIVABLE 509,73 GBP 1,000 628,44 0,01

KBC GROUP WHT TO BE RECOVERED EUR 2.273,16 EUR 1,000 2.273,16 0,03

Total receivables 32.245,64 0,43

Payables

Belgium

KBC GROUP EUR PAYABLE -6.899,56 EUR 1,000 -6.899,56 -0,09

KBC GROUP GBP PAYABLE -8.000,00 GBP 1,000 -9.863,15 -0,13

KBC GROUP NOK PAYABLE -75.000,00 NOK 1,000 -10.221,88 -0,14

Payables -26.984,59 -0,36

TOTAL RECEIVABLES AND PAYABLES 5.261,05 0,07

OTHER

Interest receivable EUR 2.151,13 0,03

Accrued interest EUR 1.727,00 0,02

Expenses payable EUR -5.254,18 -0,07

TOTAL OTHER -1.376,05 -0,02

TOTAL NET ASSETS 7.555.205,52 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 0,44 0,40 0,46 0,40 Belgium 0,68 0,51 0,64 0,51 Bermuda 0,36 0,46 0,39 0,38 Switzerland 7,78 7,84 7,18 7,69 Germany 18,05 15,45 14,52 16,26 Denmark 1,23 1,16 0,96 0,95 Spain 1,84 1,91 2,27 2,45 Finland 1,70 1,47 1,46 1,51 France 16,36 15,39 15,45 15,94 U.K. 33,51 37,88 38,20 35,81 Ireland 0,64 0,65 0,54 0,54 Italy 3,90 3,80 3,77 3,61 Jersey/The Channel Islands 0,59 0,83 0,70 0,77 Luxembourg 1,66 1,36 1,44 1,59 Netherlands 3,17 3,27 3,40 3,48 Norway 2,01 2,16 1,99 1,87 Portugal 0,27 0,17 0,17 0,19 Sweden 5,10 4,74 5,85 5,47 U.S.A. 0,71 0,55 0,61 0,58 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 79,05 80,41 70,39 69,55 Consum(cycl) 20,12 18,73 24,80 25,64 Cons.goods 0,00 0,00 3,93 3,98 Pharma 0,13 0,17 0,24 0,26 Financials 0,00 0,12 0,00 0,00 Technology 0,34 0,27 0,36 0,36 Telecomm. 0,36 0,29 0,28 0,21 Various 0,00 0,01 0,00 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CAD 0,00 0,01 0,01 0,01 CHF 8,55 8,33 7,85 8,32 DKK 1,24 1,22 0,97 0,96 EUR 48,15 43,85 43,28 45,77 GBP 34,27 39,04 39,26 36,79 NOK 2,65 2,83 2,69 2,58 SEK 5,14 4,70 5,90 5,49 USD 0,00 0,02 0,04 0,08 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND EURO CYCLICALS

(IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 1.246.790,30 19.101,66 1.265.891,96 Sales 2.323.301,04 762.585,30 3.085.886,34 Total 1 3.570.091,34 781.686,96 4.351.778,30 Subscriptions 779.030,97 49.360,98 828.391,95 Redemptions 2.042.262,37 769.635,91 2.811.898,28 Total 2 2.821.293,34 818.996,89 3.640.290,23 Monthly average of total assets

8.703.664,73 7.604.786,77 8.143.012,71

Turnover rate 8,60 % -0,49 % 8,74 %

1st half of year 2nd half of year YearPurchases 1.246.790,30 19.101,66 1.265.891,96 Sales 2.323.301,04 762.585,30 3.085.886,34 Total 1 3.570.091,34 781.686,96 4.351.778,30 Subscriptions 779.030,97 49.360,98 828.391,95 Redemptions 2.042.262,37 769.635,91 2.811.898,28 Total 2 2.821.293,34 818.996,89 3.640.290,23 Monthly average of total assets

8.904.721,16 6.845.858,90 8.415.993,27

Corrected turnover rate 8,41 % -0,55 % 8,45 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS Nil

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 71.019,59 221,00 29.057,10 815,00 74.905,46 3.964,00 78.869,46

2011 - 12 21.007,47 667,49 84.091,38 1.145,00 11.821,55 3.486,49 15.308,03

2012 - 12 1.210,11 105,18 3.811,11 960,49 9.220,54 2.631,18 11.851,72

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 40.033.662,12 114.638,19 16.310.456,87 379.019,38

2011 - 12 13.867.813,96 350.036,80 50.065.125,93 555.528,63

2012 - 12 779.912,01 49.640,29 2.354.299,61 477.967,06

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 51.074.691,94 653,77 530,74

2011 - 12 8.484.367,95 579,66 468,06

2012 - 12 7.555.205,52 667,30 532,98

Institutional B Shares Change in number of shares in circulation: Nil Amounts received and paid by the UCI: Nil Net asset value: Nil

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0172711518 EUR 14.74% 6.98% -1.05% 0.0808 30/12/1999 2.22%

DIV BE0172710502 EUR 14.71% 6.96% -1.06% 0.0806 30/12/1999 2.20%

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

Institutional B Shares

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

Classic Shares The bar chart shows the performance for full financial years. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Dividend on ex-dividend date 28/03/2013: 4.69 EUR net (6.25 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.694% Classic Shares Capitalization: 1.698% Institutional B Shares Capitalization: Not applicable * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CSFBSAS 11 5 44.44%

DEUTSCHE 300 188 62.50%

EQ CSA MACQUARIE 494 309 62.50%

MORGAN STANLEY 1,325 791 59.67%

NOMURA 155 97 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to -3.179,74 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Turkey

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND TURKEY

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 28 April 2006 Initial subscription price: 1000 TRY Currency: TRY Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 835.55 TRY Currency: TRY

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions.

STRATEGY SELECTED At least 75% of the assets are invested in shares of Turkish companies.

RISK CONCENTRATIN Turkish shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to CSOB Asset Management a.s., Radlicka 333/150 , 150 57 Praha 5, CZECH REPUBLIC..

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Equities globally had a strong start at the beginning of the year. ECB introduced second round of long term refinancing operations (LTRO), Greece received new aid package and European stability mechanism fund (ESM) increased its capacity. Two rounds of LTROs reached altogether stunning 1 trillion EUR of liquidity provided by ECB. In the second quarter, worse macro data in Europe, China and US showed global slow-down may be sharper than previously expected. During summer, markets were expecting ECB to come up with some decisive action. In September, ECB governor Mario Draghi announced direct purchase program of government bonds on secondary markets. Credit risk premium on troubled countries began falling bringing relief to equity markets as well. Situation in US has been overall improving during the year despite some short term swings. Potential problems were smoothed out by FED. FED expressed its will to keep record low rates until 2015 and has launched a new round of quantitative easing (3rd one already). FED expects to hold very loose monetary policy as long as unemployment remains above 6.5 % or until inflation picks up above 2.5 %. It was welcomed by investors.

From domestic events, Turkish GDP grew healthy in the range of 3 - 4 % dispelling worries over hard landing. Current account deficit, long term concern, was steadily easing from previous year highs. On top of that, Fitch upgraded Turkish credit rating to investment grade in November bringing fresh capital into the market as a consequence. Therefore, Turkey managed to decouple from the overall risk-off/on changes in global sentiment. The Turkish market (local index ISE 100) increased by 52.6 % in 2012 and became the second most growing market in the world for the year. We started the year with cautious approach towards Turkish assets given the risk of abrupt capital outflows in the case of deteriorating situation in Europe. Therefore, we were underweight in banking stocks and were overweight in some of the defensive sectors at the start of the year. However, lower commodity prices and surprisingly (for us) successful monetary policy made us to change our view towards Turkey in the second quarter. Our confidence regarding Turkish economy and market has increased with bigger focus on cyclical and financial companies. Easing interest rates were favourable for banking stocks, real estate funds as well as broader industry. Despite more pro-cyclical view, we were underweight in sector of materials due to weak Chinese data and overcapacity in Europe. Other underweight sectors were Telecommunication and Consumer Staples. The KBC Equity Fund Turkey increased by 59.35 % in 2012 beating its benchmark by 4.5 % mainly thanks to stock picking in financial, industrial and consumer discretionary sector. Underweight materials and Telecommunication sectors also paid off.

2.1.8 FUTURE POLICY Globally, necessary structural changes have not been made in Euro zone and we think debt concerns may hang over the markets again during this year. However, we expect loose monetary conditions in major economies to prevail, which should be favourable for global equities and emerging markets specifically. Situation in US is slowly improving and we think it will keep so. Political talks about debt stock level and its limitation may cause some short term concerns, but politicians don’t have much to choose from. Spending cuts and higher taxes will be, most likely, put off to better times. In Asia, China seems to succeed in supporting its economy and to get back on soft landing track. In Turkey, we expect to see a pick-up in domestic demand and hence GDP growth. There is also a broad market expectation of a second rating upgrade into investment grade from Moody´s or/and S&P. That would make Turkey eligible also for investors with conservative risk approach. Risks are represented by global and local ones. Among global risks we count mainly worsening situation in Euro zone, political disputes over debt situation in US and sharp slow-down in China. All these factors may lead to either slump in Turkish exports or tighter credit conditions, which may hurt Turkey via financing of its Current Account deficit. Locally, Turkish investment may be hit by regional conflicts in the Middle East.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 26.837.024,51 23.605.428,88

II. Securities, money market instruments, UCIs and derivatives

C. Shares and similar instruments a) Shares 26.773.107,50 23.555.950,00

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 12.989,76 1.444,99 B. Payables a) Accounts payable (-) -4.282,73 c) Borrowings (-) -31.960,12 -33.953,62

V. Deposits and cash at bank and in hand A. Demand balances at banks 126.551,56 107.124,68

VI. Accruals and deferrals A. Expense to be carried forward 930,56 B. Accrued income 4.063,28 C. Accrued expense (-) -39.381,46 -30.131,01

TOTAL SHAREHOLDERS' EQUITY 26.837.024,51 23.605.428,88

A. Capital 13.773.304,45 1.433.125,26

B. Income equalization -97.285,46 51.141,15

C. Profit(Loss) carried forward 28.551.875,33

D. Result for the period 13.161.005,52 -6.430.712,86

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 13.102.989,82 -6.441.471,05 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 1.744,56 10.012,67

II. Investment income and expenses A. Dividends 689.333,33 561.848,54 B. Interests a) Securities and money market instruments -4.157,94 8.622,97 b) Cash at bank and in hand and deposits 5.923,41 8.783,37 C. Interest on borrowings (-) -759,79 -491,17

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

26.872,75

B. Other 5.120,76

IV. Operating expenses A. Investment transaction and delivery costs (-) -128.071,79 -106.527,32 B. Financial expenses (-) -371,46 -2.649,55 C. Custodian's fee (-) -19.168,39 -20.933,35 D. Manager's fee (-) a) Financial management Classic Shares -384.016,90 -384.723,70 Institutional B Shares -61.187,88 -2.138,20 b) Administration and accounting management -28.830,13 -25.515,24 E. Administrative expenses (-) -312,28 -22,49 F. Formation and organisation expenses (-) -2.525,50 -3.050,59 H. Services and sundry goods (-) -6.794,99 -4.980,80 J. Taxes Classic Shares -17.480,92 -21.178,74 Institutional B Shares -496,98 817,97 K. Other expenses (-) -11.683,40 -12.236,94

Income and expenditure for the period Subtotal II + III + IV 56.271,14 745,52

V. Profit (loss) on ordinary activities before tax 13.161.005,52 -6.430.712,86

VII. Result for the period 13.161.005,52 -6.430.712,86

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 13.063.720,06 22.172.303,62 Profit (loss) brought forward from the previous

financial year 28.551.875,33

Profit for the period available for appropriation 13.161.005,52 -6.430.712,86 Income on the creation of shares (income on the

cancellation of shares) -97.285,46 51.141,15

II. (Appropriations to) Deductions from capital -13.063.720,06

III. Profit (loss) to be carried forward 22.097.108,97

IV. (Dividends to be paid out) -75.194,65

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND TURKEY

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Austria

DO & CO AG - 4.500,00 TRY 79,750 358.875,00 1,34 1,34

Turkey

AKBANK T.A.S. - 235.000,00 TRY 8,800 2.068.000,00 7,72 7,71

AKFEN HOLDING AS - 18.000,00 TRY 9,300 167.400,00 0,63 0,62

ALARKO HOLDING - 40.000,00 TRY 5,120 204.800,00 0,77 0,76

ANADOLU EFES BIRACILIK VE - 15.000,00 TRY 25,700 385.500,00 1,44 1,44

ARCELIK AS - 25.000,00 TRY 11,700 292.500,00 1,09 1,09

BIM BIRLESIK MAGAZALAR AS - 10.000,00 TRY 87,250 872.500,00 3,26 3,25

BIZIM TOPTAN SATIS MAGAALARI - 18.000,00 TRY 27,800 500.400,00 1,87 1,87

DOGAN SIRKETLER GRUBU HLDGS AS - 100.000,00 TRY 0,920 92.000,00 0,34 0,34

EMLAK KONUT GAYRIMENKUL YATIRI - 340.000,00 TRY 3,120 1.060.800,00 3,96 3,95

ENKA INSAAT VE SANAYI AS - 85.000,00 TRY 5,300 450.500,00 1,68 1,68

EREGLI DEMIR VE CELIK FABRIK - 300.000,00 TRY 2,450 735.000,00 2,75 2,74

FORD OTOMOTIV SANAYI AS - 44.000,00 TRY 21,400 941.600,00 3,52 3,51

HACI OMER SABANCI HOLDING S.A - 120.000,00 TRY 9,800 1.176.000,00 4,39 4,38

IS GAYRIMENKUL YATIRIM ORTAK - 240.000,00 TRY 1,500 360.000,00 1,35 1,34

KARDEMIR KARABUK DEMIR CELIK SANAYI - 140.000,00 TRY 1,260 176.400,00 0,66 0,66

KOC HOLDING A.S. - 140.000,00 TRY 9,260 1.296.400,00 4,84 4,83

KOZA ALTIN ISLETMELERI AS - 2.000,00 TRY 43,000 86.000,00 0,32 0,32

KOZA ANADOLU METAL MADENCILIK - 30.000,00 TRY 5,660 169.800,00 0,63 0,63

MIGROS TURK TAS - 16.935,00 TRY 21,500 364.102,50 1,36 1,36

SEKERBANK TAS - 120.000,00 TRY 1,800 216.000,00 0,81 0,81

SINPAS GAYRIMENKUL YATIRIM O - 50.000,00 TRY 1,410 70.500,00 0,26 0,26

TAV HAVALIMANLARI HOLD - 35.000,00 TRY 9,120 319.200,00 1,19 1,19

TEKFEN HOLDINGS AS - 115.000,00 TRY 7,240 832.600,00 3,11 3,10

TOFAS TURK OTOMOBIL FABRIKASI AS - 62.000,00 TRY 10,450 647.900,00 2,42 2,41

TRAKYA CAM SANAYII AS - 40.000,00 TRY 2,440 97.600,00 0,37 0,36

TUPRAS-TURKIYE PETROL RAF. A.S. - 25.000,00 TRY 51,500 1.287.500,00 4,81 4,80

TURCAS PETROLCULUK AS - 25.000,00 TRY 3,250 81.250,00 0,30 0,30

TURK HAVA YOLLARI AO - 125.000,00 TRY 6,260 782.500,00 2,92 2,92

TURK SISE VE CAM FABRIKALARI AS - 330.000,00 TRY 2,950 973.500,00 3,64 3,63

TURK TELEKOMUNIKASYON AS - 70.000,00 TRY 6,920 484.400,00 1,81 1,81

TURKCELL ILETISIM HIZMETERI A.S. - 85.000,00 TRY 11,550 981.750,00 3,67 3,66

TURKIYE GARANTI BANKASI A.S. - 272.000,00 TRY 9,260 2.518.720,00 9,41 9,39

TURKIYE HALK BANKASI - 89.000,00 TRY 17,500 1.557.500,00 5,82 5,80

TURKIYE IS BANKASI - 277.000,00 TRY 6,180 1.711.860,00 6,39 6,38

TURKIYE SINAI KALKINMA BANKASI AS - 180.000,00 TRY 2,290 412.200,00 1,54 1,54

TURKIYE VAKIFLAR BANKASI T.A.O. - 95.000,00 TRY 4,610 437.950,00 1,64 1,63

YAPI VE KREDI BANKASI A.S. - 308.000,00 TRY 5,200 1.601.600,00 5,98 5,97

Total shares 26.773.107,50 100,00 99,76

TOTAL SECURITIES PORTFOLIO 26.773.107,50 100,00 99,76

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO -13.582,71 EUR 1,000 -31.960,12 -0,12

KBC GROUP TRY 126.551,56 TRY 1,000 126.551,56 0,47

Total demand accounts 94.591,44 0,35

TOTAL CASH AT BANK AND IN HAND 94.591,44 0,35

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP TRY RECEIVABLE 12.989,76 TRY 1,000 12.989,76 0,05

Total receivables 12.989,76 0,05

Payables

Belgium

KBC GROUP TRY PAYABLE -4.282,73 TRY 1,000 -4.282,73 -0,02

Payables -4.282,73 -0,02

TOTAL RECEIVABLES AND PAYABLES 8.707,03 0,03

OTHER

Expenses payable TRY -39.381,46 -0,15

TOTAL OTHER -39.381,46 -0,15

TOTAL NET ASSETS 26.837.024,51 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 0,58 1,75 1,38 1,34 Turkey 99,42 98,25 98,62 98,66 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 21,15 15,13 15,31 14,62 Consum(cycl) 17,20 17,85 14,87 16,76 Cons.goods 6,99 11,57 10,75 7,93 Pharma 0,23 0,00 0,00 0,00 Financials 44,52 43,50 47,51 49,64 Telecomm. 6,75 9,13 6,53 5,48 Utilities 1,16 0,75 0,47 0,00 Real est. 2,00 2,07 4,56 5,57 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 EUR -0,04 -0,14 -0,11 -0,12 TRY 100,04 100,14 100,11 100,12 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND TURKEY (IN THE

CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 9.417.108,71 14.938.438,08 24.355.546,78 Sales 6.983.711,78 27.257.668,24 34.241.380,02 Total 1 16.400.820,49 42.196.106,32 58.596.926,80 Subscriptions 8.371.091,48 16.473.497,67 24.844.589,15 Redemptions 6.181.845,50 28.400.546,54 34.582.392,04 Total 2 14.552.936,98 44.874.044,21 59.426.981,19 Monthly average of total assets

29.237.201,49 29.062.896,40 29.150.763,31

Turnover rate 6,32 % -9,21 % -2,85 %

1st half of year 2nd half of year YearPurchases 9.417.108,71 14.938.438,08 24.355.546,78 Sales 6.983.711,78 27.257.668,24 34.241.380,02 Total 1 16.400.820,49 42.196.106,32 58.596.926,80 Subscriptions 8.371.091,48 16.473.497,67 24.844.589,15 Redemptions 6.181.845,50 28.400.546,54 34.582.392,04 Total 2 14.552.936,98 44.874.044,21 59.426.981,19 Monthly average of total assets

28.464.009,64 30.201.171,69 35.067.781,50

Corrected turnover rate 6,49 % -8,87 % -2,37 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS Nil

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 48.066,58 2.247,09 64.171,55 1.686,30 22.268,61 4.135,09 26.403,70

2011 - 12 16.313,05 2.608,91 18.078,85 1.303,00 20.502,81 5.441,00 25.943,81

2012 - 12 10.789,48 943,89 19.359,40 1.419,39 11.932,89 4.965,50 16.898,39

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 47.185.262,07 2.170.577,01 65.943.138,63 1.660.291,42

2011 - 12 17.071.873,69 2.648.652,10 18.903.781,67 1.274.598,12

2012 - 12 12.264.414,80 1.007.910,11 22.538.107,60 1.589.671,03

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 29.151.744,18 1.111,17 1.065,86

2011 - 12 22.203.555,99 862,09 832,26

2012 - 12 22.821.259,63 1.373,71 1.294,72

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 1.625,00 0,00 1.625,00 1.625,00

2012 - 12 11.140,00 9.837,00 2.928,00 2.928,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 1.357.768,75 0,00

2012 - 12 11.770.869,31 10.769.667,17

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 1.401.872,89 862,69

2012 - 12 4.015.764,87 1.371,50

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0946058170 EUR 65.62% 11.95% -3.15% 28/04/2006 -0.79%

CAP BE0946058170 TRY 58.95% 15.36% 3.18% 28/04/2006 4.87%

DIV BE0946057164 EUR 65.96% 11.91% -3.18% 28/04/2006 -0.81%

DIV BE0946057164 TRY 59.28% 15.32% 3.16% 28/04/2006 4.85%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228909543 EUR 65.65% 24/11/2011 65.25%

CAP BE6228909543 TRY 58.98% 24/11/2011 56.62%

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. The figures do not take account of any restructuring. Calculated in TRY and 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in TRY and in EUR. The return is calculated as the change in the net asset value between two dates expressed

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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 2.609% Classic Shares Capitalization: 1.614% Institutional B Shares Capitalization: 1.882% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 129 32 25.00%

HSBC 7,537 1,758 23.32%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.6% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. CSOB Asset Management a.s. receives a fee from the management company of max. 1.6% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to –94,66 TRY. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund High Dividend Eurozone

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND HIGH DIVIDEND EUROZONE

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 27 July 2007 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 266.02 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions. To the extent that derivatives are used, it concerns liquid and readily negotiable instruments. They do not, therefore, affect the liquidity risk. To the extent that derivatives are used, they are used to carry out the investment policy and within the limits of the investment strategy. They do not affect the market, performance and concentration risks or the risks associated with external factors or any kind.

Strategy selected This fund invests at least 75% of its assets in euro-area shares with a high dividend yield.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND.. KBC Fund Management Limited has delegated the intellectual management, to Kleinwort Benson Investors Dublin Ltd, Joshua Dawson House Dawson Street , Dublin 2, IRELAND.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Introduction: The KBC Equity Fund High Dividend Eurozone Fund invests primarily in shares that achieve a higher-than-average dividend yield within their industry. Dividend yield is not only an important valuation criterion for shares; it also provides a basic return. The fund avoids classic style exposure through industry group neutrality. Focussing on the High Dividend theme, we aim to achieve a neutral industry group allocation. This means that we look for shares with higher-than-average dividend yields in every sector. Consequently, there are also shares in the portfolio that appear at first sight to have a low dividend yield. Summary of Performance: The two main performance drivers for this fund are the high dividend theme and then stock-picking after that. Theme: The theme of high dividends has had a very weak 2012, particularly during Quarters 1, 3 & 4. The theme was more positive during quarter 2 but this did little to negate the impact of the other quarters. During Q1 2012 it was one of the worst performing styles in all regions. High dividend stocks suffered badly for the 3 months as the best performers in 2011 were out of favour at the start of the year. The reasons behind the poor performance of the theme were twofold. Generally, when markets are trending upwards like we witnessed in Q1 and growth styles begin to outperform, high dividend, defensive strategies struggle to rise in tandem. There is also a matter of possible over-valuation. Due to the strong performance of defensive industries in 2011, we witnessed a declining preference for these types of assets in Q1. Q2 2012 saw a complete reversal of the theme performance witnessed in Q1 of this year. Q2 saw much more nervous markets with muted returns mainly caused by political and economic risks associated with Greece, France and Spain. This type of environment is suitable for the theme of high dividends as investors look for defensive plays and the safety of income. The best performing industry groups during the quarter were telecoms, real estate, pharmaceuticals and food, beverage & tobacco – all of which are traditional high dividend industries. Quarter 3 was a very mixed period for high dividend stocks. Easing monetary policy globally and expectations for further actions from policy makers in Europe supported equities during late July but was most evident during the early stages of August. Among the best performing industries during this period were Telecoms, Financials and Pharmaceuticals, all defensive high dividend payers. The remainder of the quarter brought a complete reversal of what we witnessed in the first 6 weeks of the quarter. Investors became less defensive with a preference for high volatility, low return on equity and low forecast DY, these being some of the best performing styles over the quarter. In this type of environment, high DY will struggle. Quarter 4 was a continuation of the underperformance seen in high dividend stocks as Eurozone markets rallied strongly. A positive note to mention would be that our regional industry group neutral approach to constructing the theme will have helped enormously during the year. More traditional high dividend approaches would have been heavily overweight Utilities, Telecoms, Energy and Pharmaceuticals – these being those industries punished most during the year. For example our version of high dividend out-performed the MSCI EMU High Yield Index by just over 1,200 basis points during the year.

Stock-picking: There are a number of elements to our stock picking. Firstly our aim is to avoid deep value stocks that can be common in high dividend strategies. We want to avoid stocks where the DY looks attractive but it’s due to a severe drop in price. Overall this was a strong contributor to performance. Secondly and one of the most integral parts of our process is to focus on sustainability of dividends. Our focus is to buy quality names with strong balance sheets and an ability to sustain and potentially grow that dividend. This again added solid value as massive uncertainty across the globe made investors focus on more reliable, low volatility stock names with high sustainable dividends. Finally the third part of our stock picking process is the use of quantitative scores when optimising the portfolio. Overall quants performed well in 2012. Quantitative methods work best when volatility declines and clear trends are visible. While there were periods of short sharp changes in style and investor behaviour in certain months, quants were able to gain traction and add value over the period.

2.1.8 FUTURE POLICY In the high dividend portfolios at stock selection level, we will continue to emphasise companies with strong fundamentals, i.e. balance sheet, cash flow and management. Investing in companies with higher than average and growing dividends was a winning strategy for the past 24 months and this is expected to continue into 2013. We obviously continue to focus on the high dividend theme and avoid classic style exposure by aiming at Regional and industry group neutrality. We look for shares with higher-than-average dividend yields compared to their true peers. We believe sustainable high dividend payers will perform better over the long term.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 7 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 49.102.772,42 17.899.211,22

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 911.791,45 376.089,82 C. Shares and similar instruments a) Shares 48.850.210,20 17.770.183,55 Of which securities lent 844.566,75 400.604,98 D. Other securities 25.525,04 4.764,60 F. Derivative financial instruments m) Financial indices Futures and forward contracts (+/-) 19.640,01

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 15.646,83 36.723,14 b) Tax assets 66.120,03 56.244,28 c) Collateral 263.112,00 B. Payables a) Accounts payable (-) -8.139,36 -31.285,98 c) Borrowings (-) -0,06 d) Collateral (-) -911.791,45 -376.089,82

V. Deposits and cash at bank and in hand A. Demand balances at banks 206.521,00 -213.492,45

VI. Accruals and deferrals A. Expense to be carried forward 1.924,62 B. Accrued income 13.065,48 30.051,53 C. Accrued expense (-) -66.176,74 -38.654,08

TOTAL SHAREHOLDERS' EQUITY 49.102.772,42 17.899.211,22

A. Capital 43.870.556,23 22.788.186,61

B. Income equalization 151.058,74 -920.376,66

C. Profit(Loss) carried forward 3.467.103,76

D. Result for the period 5.081.157,45 -7.435.702,49

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 911.791,45 376.089,82

I.A.B Cash at bank and in hand/deposits 263.112,00

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 5.110.450,00

IX Financial instruments lent 844.566,75 400.604,98

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 3.971.475,47 -8.441.498,71 D. Other securities -12.361,29 -18.314,51 F. Derivative financial instruments l) Financial indices Futures and forward contracts 171.487,49 19.640,01 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -27,87 12,58

II. Investment income and expenses A. Dividends 1.572.818,40 1.664.707,19 B. Interests a) Securities and money market instruments 37.604,74 117.848,29 b) Cash at bank and in hand and deposits 7.261,08 1.843,53 C. Interest on borrowings (-) -375,73 -760,63

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

115.084,10 4.179,97

B. Other 4.040,97

IV. Operating expenses A. Investment transaction and delivery costs (-) -138.608,45 -140.621,19 B. Financial expenses (-) -476,79 -1.785,64 C. Custodian's fee (-) -16.122,89 -38.505,97 D. Manager's fee (-) a) Financial management Classic Shares -140.123,39 -513.522,07 Institutional B Shares -392.882,35 -14.175,96 b) Administration and accounting management -38.385,25 -35.187,72 E. Administrative expenses (-) -224,97 -211,82 F. Formation and organisation expenses (-) -2.696,11 -4.325,86 G. Remuneration, social security charges and

pension -2,67 -8,16

H. Services and sundry goods (-) -6.644,63 -8.489,47 J. Taxes Classic Shares -11.452,24 -13.763,13 Institutional B Shares -4.282,32 4.497,75 K. Other expenses (-) -29.906,88 -21.301,94

Income and expenditure for the period Subtotal II + III + IV 950.583,65 1.004.458,14

V. Profit (loss) on ordinary activities before tax 5.081.157,45 -7.435.702,49

VII. Result for the period 5.081.157,45 -7.435.702,49

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 5.232.216,19 -4.888.975,39 Profit (loss) brought forward from the previous

financial year 3.467.103,76

Profit for the period available for appropriation 5.081.157,45 -7.435.702,49 Income on the creation of shares (income on the

cancellation of shares) 151.058,74 -920.376,66

II. (Appropriations to) Deductions from capital -5.153.324,62 4.940.406,88

IV. (Dividends to be paid out) -78.891,57 -51.431,49

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND HIGH DIVIDEND EUROZONE

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Shares

Exchange-listed shares

Austria

RAIFFEISEN BANK INTL - 71.178,00 EUR 31,455 2.238.903,99 4,58 4,56

Belgium

BELGACOM - 64.040,00 EUR 22,205 1.422.008,20 2,91 2,90

Finland

POHJOLA BANK PLC - 102.441,00 EUR 11,270 1.154.510,07 2,36 2,35

SAMPO OYJ SAMPO OYJ 24.937,00 EUR 24,340 606.966,58 1,24 1,24

UPM-KYMMENE CORP - 94.782,00 EUR 8,805 834.555,51 1,71 1,70

France

BIC (PAR) 3.585,00 EUR 90,320 323.797,20 0,66 0,66

BOUYGUES - 94.006,00 EUR 22,400 2.105.734,40 4,31 4,29

CAP GEMINI SOGETI - 14.931,00 EUR 32,860 490.632,66 1,00 1,00

CHRISTIAN DIOR - 8.993,00 EUR 128,250 1.153.352,25 2,36 2,35

CNP ASSURANCE (PAR) 51.738,00 EUR 11,605 600.419,49 1,23 1,22

DANONE - 11.186,00 EUR 49,905 558.237,33 1,14 1,14

FONCIERE DES REGIONS - 15.653,00 EUR 63,300 990.834,90 2,03 2,02

L'OREAL - 5.049,00 EUR 104,900 529.640,10 1,08 1,08

LAGARDERE S.C.A. - 7.424,00 EUR 25,285 187.715,84 0,38 0,38

NATIXIS (PAR) 424.435,00 EUR 2,550 1.082.309,25 2,21 2,20

PINAULT-PRINTEMPS-REDOUTE - 1.440,00 EUR 140,850 202.824,00 0,42 0,41

RENAULT (PAR) 21.999,00 EUR 40,685 895.029,32 1,83 1,82

SANOFI - 36.534,00 EUR 71,390 2.608.162,26 5,34 5,31

TOTAL - 84.113,00 EUR 39,010 3.281.248,13 6,71 6,68

VIVENDI - 103.021,00 EUR 16,950 1.746.205,95 3,57 3,56

Germany

ALLIANZ AG REG 6.736,00 EUR 104,800 705.932,80 1,44 1,44

AXEL SPRINGER AG - 6.805,00 EUR 32,285 219.699,43 0,45 0,45

BASF SE - 48.671,00 EUR 71,150 3.462.941,65 7,09 7,05

BAYER AG - 17.585,00 EUR 71,890 1.264.185,65 2,59 2,58

DAIMLER AG - 8.061,00 EUR 41,320 333.080,52 0,68 0,68

DEUTSCHE BOERSE AG - 14.095,00 EUR 46,210 651.329,95 1,33 1,33

K+S AG (FRA) 1.754,00 EUR 35,000 61.390,00 0,13 0,13

MUNCHENER RUCKVERSICHERUNG AG REG 10.998,00 EUR 136,000 1.495.728,00 3,06 3,05

PROSIEBEN SAT.1 MEDIA AG PREF 39.726,00 EUR 21,300 846.163,80 1,73 1,72

SIEMENS AG REG 23.999,00 EUR 82,200 1.972.717,80 4,04 4,02

SUDZUCKER AG (FRA) 38.302,00 EUR 30,990 1.186.978,98 2,43 2,42

VOLKSWAGEN AG PREF 12.349,00 EUR 172,150 2.125.880,35 4,35 4,33

Italy

ATLANTIA SPA - 37.644,00 EUR 13,670 514.593,48 1,05 1,05

E.N.E.L. - 690.163,00 EUR 3,138 2.165.731,49 4,43 4,41

ENI - 2.609,00 EUR 18,340 47.849,06 0,10 0,10

Netherlands

ASML HOLDING NV - 975,00 EUR 48,000 46.800,00 0,10 0,10

BOSKALIS WESTMINSTER (AMS) 22.738,00 EUR 34,000 773.092,00 1,58 1,57

KON. AHOLD - 127.956,00 EUR 10,135 1.296.834,06 2,65 2,64

KONINKLIJKE D.S.M. NV (AMS) 13.897,00 EUR 45,790 636.343,63 1,30 1,30

RANDSTAD HOLDING (AMS) 17.008,00 EUR 27,805 472.907,44 0,97 0,96

UNILEVER CVA 59.070,00 EUR 28,835 1.703.283,45 3,49 3,47

Portugal

ENERGIAS DE PORTUGAL SA - 239.875,00 EUR 2,290 549.313,75 1,12 1,12

Spain

AMADEUS IT HOLDING SA - 32.729,00 EUR 19,050 623.487,45 1,28 1,27

BANCO BILBAO VIZCAYA ARGENTARIA - 134.221,00 EUR 6,960 934.178,16 1,91 1,90

CORPORACION MAPFRE SA (MAD) 21.207,00 EUR 2,315 49.094,21 0,10 0,10

ENAGAS - 36.321,00 EUR 16,140 586.220,94 1,20 1,19

RED ELECTRICA DE ESPANA - 7.081,00 EUR 37,300 264.121,30 0,54 0,54

REPSOL INTL FINANCE - 55.249,00 EUR 15,335 847.243,42 1,73 1,73

Total shares 48.850.210,20 99,95 99,49

Rights

Spain

REPSOL YPF SA CP 27/12/2012 55.249,00 EUR 0,462 25.525,04 0,05 0,05

Total rights 25.525,04 0,05 0,05

TOTAL SECURITIES PORTFOLIO 48.875.735,24 100,00 99,54

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 911.791,45 EUR 1,000 911.791,45 1,86

TOTAL RECEIVED COLLATERAL 911.791,45 1,86

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO 206.125,38 EUR 1,000 206.125,38 0,42

KBC GROUP GBP 320,89 GBP 1,000 395,62 0,00

KBC GROUP USD -0,08 USD 1,000 -0,06

Total demand accounts 206.520,94 0,42

TOTAL CASH AT BANK AND IN HAND 206.520,94 0,42

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 15.646,83 EUR 1,000 15.646,83 0,03

KBC GROUP WHT TO BE RECOVERED EUR 66.120,03 EUR 1,000 66.120,03 0,14

Total receivables 81.766,86 0,17

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-911.791,45 EUR 1,000 -911.791,45 -1,86

KBC GROUP EUR PAYABLE -8.139,36 EUR 1,000 -8.139,36 -0,02

Payables -919.930,81 -1,87

TOTAL RECEIVABLES AND PAYABLES -838.163,95 -1,71

OTHER

Accrued interest EUR 13.065,48 0,03

Expenses payable EUR -66.176,74 -0,13

TOTAL OTHER -53.111,26 -0,11

TOTAL NET ASSETS 49.102.772,42 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 0,81 0,43 2,09 4,58 Belgium 2,65 4,06 3,83 2,91 Cyprus 0,00 0,08 0,00 0,00 Germany 18,10 25,35 23,60 29,31 Spain 18,81 13,08 10,25 6,81 Finland 6,56 5,44 6,93 5,31 France 29,70 32,74 33,26 34,29 Greece 1,92 0,52 0,00 0,00 Italy 9,29 6,20 6,28 5,58 Luxembourg 0,00 0,16 0,31 0,00 Netherlands 8,72 9,56 11,70 10,09 Portugal 3,44 2,38 1,75 1,12 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 23,49 25,40 28,21 27,01 Consum(cycl) 12,66 15,69 17,49 19,13 Cons.goods 5,74 8,70 8,98 10,12 Pharma 6,85 7,57 5,46 5,34 Financials 24,20 16,78 19,28 19,48 Technology 4,00 4,86 2,23 2,38 Telecomm. 11,38 9,99 8,54 7,22 Utilities 9,35 8,78 8,20 7,29 Real est. 2,33 2,06 1,61 2,03 Governm. 0,00 0,08 0,00 0,00 Various 0,00 0,09 0,00 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 EUR 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND HIGH DIVIDEND

EUROZONE (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 42.795.894,24 39.926.881,68 82.722.775,92 Sales 25.196.783,22 30.583.038,24 55.779.821,46 Total 1 67.992.677,46 70.509.919,92 138.502.597,38 Subscriptions 33.570.458,89 31.037.792,14 64.608.251,03 Redemptions 16.089.660,61 29.987.183,85 46.076.844,46 Total 2 49.660.119,50 61.024.975,99 110.685.095,49 Monthly average of total assets

34.224.240,24 42.308.370,96 38.298.642,12

Turnover rate 53,57 % 22,42 % 72,63 %

1st half of year 2nd half of year YearPurchases 42.795.894,24 39.926.881,68 82.722.775,92 Sales 25.196.783,22 30.583.038,24 55.779.821,46 Total 1 67.992.677,46 70.509.919,92 138.502.597,38 Subscriptions 33.570.458,89 31.037.792,14 64.608.251,03 Redemptions 16.089.660,61 29.987.183,85 46.076.844,46 Total 2 49.660.119,50 61.024.975,99 110.685.095,49 Monthly average of total assets

31.422.035,15 40.975.220,02 37.482.317,45

Corrected turnover rate 58,34 % 23,15 % 74,22 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 911.791,45 911.791,45 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 285.699,01 1.725,00 239.581,76 1.528,00 144.802,90 7.109,00 151.911,90

2011 - 12 99.289,83 1.330,78 224.817,65 1.888,00 19.275,08 6.551,78 25.826,86

2012 - 12 19.472,43 5.778,12 8.903,69 991,00 29.843,81 11.338,91 41.182,72

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 95.481.500,77 539.539,14 77.844.065,71 470.636,74

2011 - 12 33.313.829,88 426.353,63 69.282.740,59 610.838,72

2012 - 12 6.301.270,89 1.583.806,10 2.617.105,27 282.475,48

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 51.197.554,19 337,96 317,99

2011 - 12 7.470.360,84 295,37 271,24

2012 - 12 14.097.146,25 352,73 314,87

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 35.318,00 0,00 35.318,00 35.318,00

2012 - 12 180.710,00 116.766,00 99.262,00 99.262,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 10.345.437,52 0,00

2012 - 12 57.617.582,33 36.419.759,92

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 10.428.850,39 295,28

2012 - 12 35.005.626,16 352,66

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0947326246 EUR 19.26% 1.59% -6.16% 27/07/2007 -6.24%

DIV BE0947325230 EUR 19.14% 1.55% -6.18% 27/07/2007 -6.27%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228916613 EUR 19.27% 25/11/2011 17.60%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 5.22 EUR net (6.96 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.808% Classic Shares Capitalization: 1.758% Institutional B Shares Capitalization: 1.754% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 2,732 1,541 56.39%

CSFBSAS 15,358 9,493 61.81%

DEUTSCHE 19,510 11,657 59.75%

EQ CSA MACQUARIE 4,127 2,577 62.45%

MERRILL 9,816 5,845 59.55%

MORGAN STANLEY 16,375 9,936 60.67%

NOMURA 17,060 10,325 60.52%

SOCGEN 40 20 50.00%

UBSWDR 9,137 5,711 62.50%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. Kleinwort Benson Investors Dublin Ltd receives a fee of max. 0.5% from KBC Fund Management Limited calculated on that part of the portfolio that it manages, without the total management fee received by KBC Fund Management Limited being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 43.159,09 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

RAIFFEISEN BANK INTL EUR 26.850 31,455 844.566,75

Total 844.566,75

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FRANCE 2003 2,25% 25/07/2020 EUR 317.000 EUR 461.251,80

OAT FRANCE 2006 3 1/4% 25/04/16 EUR 143.000 EUR 160.233,36

FRANCE - 08/14 3.00% 12/07 EUR 274.000 EUR 290.306,29

Total 911.791,45 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Quant Europe

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND QUANT EUROPE

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 28 September 2007 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 268.08 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions. Derivatives may be used to partially hedge the open exchange risk in relation to the reference currency (euro). Where appropriate, they may therefore limit the foreign exchange risk expressed in euros, and hence the market risk and performance risk too. Derivatives are liquid and readily negotiable instruments. They do not, therefore, affect the liquidity risk. Derivatives are also used in accordance with the investment policy and strategy. They do not affect the market, performance and concentration risks or the risks associated with external factors or of any kind.

Strategy selected The assets are invested primarily in European shares. The stock picking is based on a series of quantitative models. Developed by KBC Asset Management, these models evaluate shares by sector on the basis of quantitative criteria, mainly fundamental data on the company, such as the price/earnings ratio, and price data, such as the historical return. The basic principle behind these models is that share prices do not always accurately reflect the fundamental value of the company concerned, but that this value can be estimated provided that enough information is available and that it can be processed efficiently.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Doubts about the sustainability of the economic recovery continued to dominate the investment climate in the past period under review. In Europe the debt crisis continued to rage unabated. Five euro countries needed a bail-out from the European emergency funds. Greece twice reached an agreement during the year with its private sector creditors concerning a rescheduling of its bond debts. Spain came into the spotlight. Mario Draghi, the President of the European Central Bank, managed however to convince the market that the continuing existence of the euro was not at issue. Fortunately, this was offset to some extent by the boom in Asia. In the EMU real GDP shrank by 0.3% y-o-y. The austerity programme and credit restrictions pushed Southern Europe into a deep recession. Germany fulfilled its traditional role as locomotive of the European economy to a lesser extent than in the recent past. Greater divergence within Europe resulted in a further decline in unemployment in Germany and an alarmingly rapid rise in unemployment in countries such as Greece, Spain and Portugal. Belgium was closer to the strong core of the euro area than to the weak periphery. Market performance was consequently dictated in 2012 by volatile sentiment. During the first three months the markets were buoyed by relative economic optimism. After the market eased in April and May, a fine rally was built up from early June onwards, in disregard of the worsening economic signals. On 31 December the MSCI All Countries (the broadest world index) in euros was 14.5% higher than at the end of 2011. Among the traditional markets, Western Europe (MSCI Europe index return for the same period +18.4%) managed to offset some of the underperformance built up since the euro crisis flared up in autumn 2009, despite the continuing influence of certain problem files. Evidently the underperformance of European shares had seen such a valuation gap open up against US shares that new episodes in the euro crisis lacked the same impact on the trading floor. Wall Street closed the year up substantially up on balance (S&P500: +13.4%, Dow Jones: +7.3%), while European investors also benefited from the small increase in value of the dollar (MSCI USA return in euros: +13,9%). The BEL 20 rose by 18.8%, more or less in line with the performance of other European stock markets. The Belgian banking stocks KBC and Ageas recorded the best performance, while Solvay and AB InBev, which has taken over the Mexican market leader Modelo, were once again star performers. D’Ieteren, Mobistar and especially Delhaize, which is grappling with structural problems in its two main markets, were the most important underperformers during the period under review.

2.1.8 FUTURE POLICY In Europe the budgetary plans, the banks' tighter lending policy and the high level of uncertainty among consumers and producers will continue to weigh on growth. The first half of the year could therefore see a further contraction in European GDP. Recovery is not anticipated until the second half of the year. Deflation or depression scenarios, which are currently dominating bond market sentiment, are not however justified. The crisis has also brought the realisation that economic governance, as it is now called in Eurospeak, needs to be tackled as a matter of urgency. In concrete terms, this involves measures such as supranational supervision of banks, strict monitoring and sanctioning of budgetary policy, monitoring of pay policy and harmonising European taxation. During the coming months the organisation of the ESM (European Stability Mechanism, which came into operation from 1 October 2012) the installation of the pan-European banking supervision within the ECB (to be in place by 1 March 2014) and the implementation of the Fiscal Stability Treaty (in force since 1 January 2013) will continue to demand considerable energy and diplomatic dexterity. No delays can be permitted in this work to set up a new architecture for the EMU. Since it may be argued that money market rates will not rise rapidly and that bond rates are at an historical low, everything would appear to point to shares as the most interesting investment alternative in the coming months. The lack of alternatives is not, of course, sufficient reason to increase the market valuation. For that to happen, investors will need to be more predisposed to taking risk. The present valuation prices in very gloomy scenarios. Based on forecast earnings for 2013, the price-earnings ratio (PE) is 13.5 for the US S&P 500 index and 11.4 for the MSCI Europe. That is 25% and 30% respectively lower than the historical average. Equities are certainly dirt-cheap compared with bonds. The earnings yield – the inverse of the price/earnings ratio – is currently 8.7% for the MSCI Europe, an unprecedented premium of some 740 basis points above German bond yields.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 47.744.281,83 25.304.106,03

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 108.020,80 127.876,50 a} Collateral received in the form of bonds 96.819,48 638.254,91 C. Shares and similar instruments a) Shares 44.437.395,75 25.284.139,57 Of which securities lent 89.127,34 2.340.377,03 D. Other securities 860,31 4.601,79 F. Derivative financial instruments m) Financial indices Futures and forward contracts (+/-) -31.757,77 6.840,00

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 1.817,75 b) Tax assets 7.836,36 2.663,28 c) Collateral 127.530,00 10.386,00 B. Payables a) Accounts payable (-) -18.994,81 -29.404,98 c) Borrowings (-) -1.696,43 -288.237,78 d) Collateral (-) -96.819,48 -638.254,91

V. Deposits and cash at bank and in hand A. Demand balances at banks 3.122.116,30 105.828,09

VI. Accruals and deferrals A. Expense to be carried forward -2.499,11 B. Accrued income 42.313,64 143.408,32 C. Accrued expense (-) -51.160,07 -61.495,65

TOTAL SHAREHOLDERS' EQUITY 47.744.281,83 25.304.106,03

A. Capital 28.880.529,61 12.306.827,96

B. Income equalization 33.729,87 -2.472.214,62

C. Profit(Loss) carried forward 12.997.278,07 46.077.446,04

D. Result for the period 5.832.744,28 -30.607.953,35

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 96.819,48 638.254,91

I.A.B Cash at bank and in hand/deposits 127.530,00 10.386,00

III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 3.430.140,83 138.480,00

IX Financial instruments lent 89.127,34 683.219,50

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -19.855,70 144,80 C. Shares and similar instruments a) Shares 4.817.542,87 -31.125.188,13 D. Other securities -12.730,24 547,06 E. Open-end undertakings for collective investment -414.485,41 F. Derivative financial instruments l) Financial indices Futures and forward contracts -33.962,76 -1.765.090,09 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 498.380,11 836.583,55

II. Investment income and expenses A. Dividends 1.205.883,61 4.478.770,10 B. Interests a) Securities and money market instruments 21.347,43 195.580,37 b) Cash at bank and in hand and deposits 13.289,49 29.311,75 c) Collateral (+/-) 1,31 C. Interest on borrowings (-) -2.727,78 -14.404,63

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

184.536,56 29.023,06

B. Other 21.165,56

IV. Operating expenses A. Investment transaction and delivery costs (-) -156.540,61 -652.718,65 B. Financial expenses (-) -504,08 -7.911,95 C. Custodian's fee (-) -17.792,95 -139.973,45 D. Manager's fee (-) a) Financial management Classic Shares -19.015,96 -1.779.056,02 Institutional B Shares -559.542,75 -38.606,35 b) Administration and accounting management -44.439,96 -127.300,53 F. Formation and organisation expenses (-) -2.531,57 -15.321,49 G. Remuneration, social security charges and

pension -3,08 -37,33

H. Services and sundry goods (-) -6.723,60 -30.639,43 J. Taxes Classic Shares -1.006,65 -43.283,78 Institutional B Shares -5.954,21 32.976,17 K. Other expenses (-) -24.903,89 -78.039,84

Income and expenditure for the period Subtotal II + III + IV 583.370,00 1.859.534,87

V. Profit (loss) on ordinary activities before tax 5.832.744,28 -30.607.953,35

VII. Result for the period 5.832.744,28 -30.607.953,35

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 18.863.752,22 12.997.278,07 Profit (loss) brought forward from the previous

financial year 12.997.278,07 46.077.446,04

Profit for the period available for appropriation 5.832.744,28 -30.607.953,35 Income on the creation of shares (income on the

cancellation of shares) 33.729,87 -2.472.214,62

II. (Appropriations to) Deductions from capital -18.863.752,22

III. Profit (loss) to be carried forward 12.997.278,07

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND QUANT EUROPE

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 181.000,00 EUR 59,680 108.020,80 0,24 0,23

Total bonds 108.020,80 0,24 0,23

Shares

Exchange-listed shares

Austria

ANDRITZ AG - 366,00 EUR 48,540 17.765,64 0,04 0,04

OMV AG (WIEN) 3.183,00 EUR 27,355 87.070,97 0,20 0,18

RHI AG (WIEN) 3.495,00 EUR 24,900 87.025,50 0,20 0,18

Belgium

AGEAS NV - 13.217,00 EUR 22,215 293.615,66 0,66 0,62

AGFA GEVAERT STRIP VVPR 6.628,00 EUR 0,001 6,63

ANHEUSER-BUSCH INBEV NV - 7.815,00 EUR 65,740 513.758,10 1,15 1,08

ANHEUSER-BUSCH INBEV NV STRIP-VVPR 5.792,00 EUR 0,001 5,79

BARCO NV NEW 953,00 EUR 54,500 51.938,50 0,12 0,11

ELIA SYSTEM OPERATOR - 377,00 EUR 34,200 12.893,40 0,03 0,03

NYRSTAR STRIP VVPR 37.464,00 EUR 0,001 37,46

SOLVAY - 159,00 EUR 109,350 17.386,65 0,04 0,04

Denmark

AMAGERBANKEN A/S - 79.092,00 DKK 3,450 36.572,50 0,08 0,08

COLOPLAST A/S "B" 1.705,00 DKK 276,500 63.186,24 0,14 0,13

DSV DE SAMMENSLUTTEDE VOGNMAEND - 17.244,00 DKK 145,700 336.744,51 0,76 0,71

NOVO NORDISK A/S "B" 4.371,00 DKK 916,500 536.928,23 1,21 1,13

ROYAL UNIBREW SA - 638,00 DKK 492,000 42.071,57 0,10 0,09

Finland

ELISA OYJ (HEL) "A" 397,00 EUR 16,730 6.641,81 0,02 0,01

France

AIR LIQUIDE (L') - 7.074,00 EUR 95,050 672.383,70 1,51 1,41

BIC (PAR) 3.068,00 EUR 90,320 277.101,76 0,62 0,58

BNP PARIBAS - 5.467,00 EUR 42,585 232.812,20 0,52 0,49

BOUYGUES - 25.132,00 EUR 22,400 562.956,80 1,27 1,18

CAP GEMINI SOGETI - 5.365,00 EUR 32,860 176.293,90 0,40 0,37

CHRISTIAN DIOR - 614,00 EUR 128,250 78.745,50 0,18 0,17

CIMENTS FRANCAIS (PAR) 256,00 EUR 44,710 11.445,76 0,03 0,02

CREDIT AGRICOLE - 727,00 EUR 6,084 4.423,07 0,01 0,01

DANONE - 3.044,00 EUR 49,905 151.910,82 0,34 0,32

EDENRED - 497,00 EUR 23,300 11.580,10 0,03 0,02

EIFFAGE SA - 2.994,00 EUR 33,570 100.508,58 0,23 0,21

ELECTRICITE DE FRANCE - 20.316,00 EUR 13,980 284.017,68 0,64 0,60

FIMALAC - 589,00 EUR 35,060 20.650,34 0,05 0,04

GDF SUEZ STRIP VVPR 341,00 EUR 0,001 0,34

KLEPIERRE (CIE FONCIERE) - 1.422,00 EUR 30,020 42.688,44 0,10 0,09

LEGRAND (PAR) 59,00 EUR 31,875 1.880,63 0,00 0,00

LVMH-MOET H.L.VUIT. - 1.874,00 EUR 138,800 260.111,20 0,58 0,55

MERCIALYS SA - 6.835,00 EUR 17,150 117.220,25 0,26 0,25

NEOPOST SA - 938,00 EUR 40,000 37.520,00 0,08 0,08

RALLYE - 1.343,00 EUR 25,415 34.132,35 0,08 0,07

RENAULT (PAR) 8.532,00 EUR 40,685 347.124,42 0,78 0,73

RODAMCO UNIBAIL - 2.866,00 EUR 181,950 521.468,70 1,17 1,09

S.I.L.I.C. - 489,00 EUR 83,550 40.855,95 0,09 0,09

SAFT GROUPE SA - 1.801,00 EUR 17,700 31.877,70 0,07 0,07

SANOFI - 16.258,00 EUR 71,390 1.160.658,62 2,61 2,43

TELEVISION FRANCAISE (TF1) (PAR) 4.096,00 EUR 8,850 36.249,60 0,08 0,08

TOTAL - 16.754,00 EUR 39,010 653.573,54 1,47 1,37

UBI SOFT ENTERTAINMENT - 8.007,00 EUR 7,900 63.255,30 0,14 0,13

WENDEL INVESTISSEMENT (PAR) 2.954,00 EUR 77,770 229.732,58 0,52 0,48

Germany

AURUBIS AG (FRA) 7.287,00 EUR 53,840 392.332,08 0,88 0,82

BASF SE - 12.563,00 EUR 71,150 893.857,45 2,01 1,87

BAYER AG - 5.201,00 EUR 71,890 373.899,89 0,84 0,78

DAIMLER AG - 4.422,00 EUR 41,320 182.717,04 0,41 0,38

DEUTSCHE POST AG - 9.197,00 EUR 16,600 152.670,20 0,34 0,32

DEUTSCHE TELEKOM INT FIN REG 18.499,00 EUR 8,595 158.998,91 0,36 0,33

DUERR AG (FRA) 883,00 EUR 66,703 58.898,75 0,13 0,12

E.ON SE - 30.645,00 EUR 14,090 431.788,05 0,97 0,90

FREENET AG FRA 4.523,00 EUR 14,000 63.322,00 0,14 0,13

FUCHS PETROCLUB AG - 360,00 EUR 53,000 19.080,00 0,04 0,04

HANNOVER RUCKVERSICHERUNG AG (FRA) NAAM 3.341,00 EUR 58,960 196.985,36 0,44 0,41

LANXESS - 4.464,00 EUR 66,270 295.829,28 0,67 0,62

MUNCHENER RUCKVERSICHERUNG AG REG 4.972,00 EUR 136,000 676.192,00 1,52 1,42

SAP AG - 4.221,00 EUR 60,690 256.172,49 0,58 0,54

SIEMENS AG REG 6.390,00 EUR 82,200 525.258,00 1,18 1,10

SUDZUCKER AG (FRA) 6.181,00 EUR 30,990 191.549,19 0,43 0,40

TUI AG PREF 30.882,00 EUR 7,849 242.392,82 0,55 0,51

VOLKSWAGEN AG PREF 2.451,00 EUR 172,150 421.939,65 0,95 0,88

Greece

GREEK ORG OF FOOTBALL PROGNOSTICS - 28.901,00 EUR 5,400 156.065,40 0,35 0,33

OTE PLC - 11.536,00 EUR 5,100 58.833,60 0,13 0,12

Ireland

DRAGON OIL PLC - 2.983,00 EUR 6,806 20.302,30 0,05 0,04

Italy

E.N.E.L. - 13.513,00 EUR 3,138 42.403,79 0,10 0,09

EXOR SPA - 16.088,00 EUR 19,000 305.672,00 0,69 0,64

EXOR SPA PRF 638,00 EUR 16,580 10.578,04 0,02 0,02

LUXOTTICA GROUP SPA - 1.165,00 EUR 31,070 36.196,55 0,08 0,08

PARMALAT SPA - 6.971,00 EUR 1,760 12.268,96 0,03 0,03

TELECOM ITALIA (MIL) 57.458,00 EUR 0,683 39.243,81 0,09 0,08

TERNA RETE ELETTRICA NAZIONALE - 105.854,00 EUR 3,024 320.102,50 0,72 0,67

Jersey/The Channel Islands

ATRIUM EUROPEAN REAL ESTATE - 10.586,00 EUR 4,450 47.107,70 0,11 0,10

SHIRE LTD - 5.232,00 GBP 18,870 121.720,92 0,27 0,26

Luxembourg

ARCELORMITTAL - 3.338,00 EUR 12,935 43.177,03 0,10 0,09

Netherlands

ASML HOLDING NV - 7.645,00 EUR 48,000 366.960,00 0,82 0,77

CONVERSUS CAPITAL LP - 1.723,00 USD 20,200 26.399,12 0,06 0,06

DELTA LLOYD - 16.451,00 EUR 12,335 202.923,09 0,46 0,43

HEINEKEN HOLDING (AMS)("A" 25NLG) 635,00 EUR 41,435 26.311,23 0,06 0,06

ING GROEP NV - 1.748,00 EUR 7,061 12.342,63 0,03 0,03

KON. AHOLD - 50.090,00 EUR 10,135 507.662,15 1,14 1,06

KONINKLIJKE KPN NV - 54.339,00 EUR 3,716 201.923,72 0,45 0,42

KONINKLIJKE PHILIPS ELECTRONICS N.V. - 27.592,00 EUR 19,895 548.942,84 1,23 1,15

MEDIQ NV - 3.011,00 EUR 12,825 38.616,08 0,09 0,08

SBM OFFSHORE NV (AMS) 1.667,00 EUR 10,515 17.528,51 0,04 0,04

UNILEVER CVA 4.556,00 EUR 28,835 131.372,26 0,30 0,28

Norway

AUSTEVOLL SEAFOOD ASA - 6.969,00 NOK 28,500 27.069,80 0,06 0,06

STATOIL - 20.370,00 NOK 139,000 385.900,62 0,87 0,81

YARA INTL ASA - 7.852,00 NOK 273,800 293.010,63 0,66 0,61

Portugal

BANCO BPI SA (LIS) 9.883,00 EUR 0,943 9.319,67 0,02 0,02

ENERGIAS DE PORTUGAL SA - 58.242,00 EUR 2,290 133.374,18 0,30 0,28

SONAE SGPS SA - 38.174,00 EUR 0,687 26.225,54 0,06 0,06

SONAECOM SGPS SA (LTS) 22.006,00 EUR 1,481 32.590,89 0,07 0,07

Spain

ACTIVIDADES CONSTRUCY SERV - 14.145,00 EUR 19,040 269.320,80 0,61 0,56

AMADEUS IT HOLDING SA - 2.218,00 EUR 19,050 42.252,90 0,10 0,09

BANCO BILBAO VIZCAYA ARGENTARIA - 8.339,00 EUR 6,960 58.039,44 0,13 0,12

BANCO SANTANDER CENTRAL HISPANO SA - 42.527,00 EUR 6,100 259.414,70 0,58 0,54

BANKIA SAU - 3.235,00 EUR 0,391 1.264,89 0,00 0,00

CONSTRUCCIONES Y AUXILIAR DE F - 41,00 EUR 349,000 14.309,00 0,03 0,03

DISTRIBUIDORA INTERNACIONAL DE ALIM - 7.469,00 EUR 4,810 35.925,89 0,08 0,08

DURO FELGUERA SA - 6.332,00 EUR 4,810 30.456,92 0,07 0,06

ENDESA - 8.559,00 EUR 16,870 144.390,33 0,32 0,30

GAS NATURAL SDG - 15.478,00 EUR 13,580 210.191,24 0,47 0,44

IBERDROLA SA - 13.720,00 EUR 4,195 57.555,40 0,13 0,12

INDUSTRIA DE DISENO TEXTIL SA - 2.481,00 EUR 105,500 261.745,50 0,59 0,55

OBRASCON HUARTE LAIN S.A. (MAD) 10.498,00 EUR 21,950 230.431,10 0,52 0,48

PROSEGUR CIA DE SEGURIDAD S.A. (MAD) -REGD- 44.863,00 EUR 4,440 199.191,72 0,45 0,42

TELEFONICA SA - 23.030,00 EUR 10,190 234.675,70 0,53 0,49

Sweden

ERICSSON "B" 8.827,00 SEK 65,100 66.999,08 0,15 0,14

INVESTOR AB "B" 29.627,00 SEK 170,000 587.234,17 1,32 1,23

JM AB - 2.879,00 SEK 116,000 38.938,07 0,09 0,08

LUNDBERGFORETAGEN AB -B- 1.179,00 SEK 229,900 31.602,94 0,07 0,07

NORDEA BANK AB - 45.994,00 SEK 62,100 333.017,84 0,75 0,70

RATOS AB - 5.780,00 SEK 62,500 42.119,44 0,10 0,09

S.K.F. B FRIA 1.432,00 SEK 163,200 27.248,20 0,06 0,06

SKANDINAVISKA ENSKILDA "A" 46.812,00 SEK 55,250 301.553,38 0,68 0,63

SVENSKA HANDBK "A" 17.104,00 SEK 232,400 463.456,02 1,04 0,97

SWEDBANK - 29.085,00 SEK 127,000 430.672,86 0,97 0,90

VOLVO TREASURY AB "A" FRIA 3.984,00 SEK 89,400 41.527,10 0,09 0,09

VOLVO TREASURY AB "B" 37.614,00 SEK 88,800 389.436,99 0,88 0,82

Switzerland

ABB LTD - 25.813,00 CHF 18,750 401.055,48 0,90 0,84

ADECCO SA CHESEREX REG 10.160,00 CHF 48,040 404.446,80 0,91 0,85

ALLREAL HOLDING AG-REG - 586,00 CHF 141,100 68.515,58 0,15 0,14

BB BIOTECH AG - 2.509,00 CHF 88,500 183.996,11 0,41 0,39

CLARIANT AG (NOM) 14.102,00 CHF 12,350 144.315,30 0,32 0,30

COMPAGNIE FINANCIERE RICHEMONT "A" 1.344,00 CHF 71,400 79.517,40 0,18 0,17

DUFRY GROUP - 1.749,00 CHF 119,600 173.334,77 0,39 0,36

GEBERIT AG - 2.051,00 CHF 201,400 342.286,54 0,77 0,72

GRAUBUENDNER KANTONALBANK - 7,00 CHF 1.153,000 6.687,94 0,02 0,01

LA FONCIERE - 10,00 CHF 835,000 6.919,12 0,02 0,01

NESTLE AG REG 36.142,00 CHF 59,600 1.784.938,02 4,01 3,74

NOVARTIS AG REG 12.892,00 CHF 57,450 613.726,72 1,38 1,29

OC OERLIKON CORP AG (NOM)20CHF 17.936,00 CHF 10,350 153.826,32 0,35 0,32

ROCHE HOLDING GENOTS 5.667,00 CHF 184,000 864.043,75 1,94 1,81

SCHRODER IMMOPLUS - 9,00 CHF 1.078,000 8.039,44 0,02 0,02

SYNGENTA (NOM) 1.017,00 CHF 366,600 308.942,82 0,69 0,65

THE SWATCH GROUP AG REG 253,00 CHF 78,750 16.509,57 0,04 0,04

VONTOBEL HOLDING AG REG 338,00 CHF 28,200 7.898,24 0,02 0,02

ZURICH INSURANCE GROUP AG - 1.314,00 CHF 243,400 265.021,21 0,60 0,56

U.K.

AMEC - 27.855,00 GBP 10,030 344.452,78 0,77 0,72

ASTRAZENECA PLC - 19.928,00 GBP 29,095 714.838,07 1,61 1,50

BAE SYSTEMS PLC - 30.039,00 GBP 3,369 124.770,55 0,28 0,26

BARCLAYS BANK PLC - 107.256,00 GBP 2,624 346.985,26 0,78 0,73

BARRATT DEVELOPMENTS PLC - 72.319,00 GBP 2,076 185.099,55 0,42 0,39

BAT HOLDINS BV - 12.225,00 GBP 31,210 470.401,00 1,06 0,99

BG GROUP PLC - 3.922,00 GBP 10,125 48.958,51 0,11 0,10

BILLITON PLC - 25.494,00 GBP 21,295 669.331,44 1,50 1,40

BOVIS HOME GROUP PLC - 1.381,00 GBP 5,750 9.790,10 0,02 0,02

BP PLC - 154.499,00 GBP 4,248 809.162,56 1,82 1,70

BRITISH SKY BROADCAST - 3.846,00 GBP 7,670 36.368,91 0,08 0,08

BT GROUP PLC - 106.795,00 GBP 2,311 304.282,14 0,68 0,64

CABLE & WIRELESS - 15.348,00 GBP 0,354 6.689,09 0,02 0,01

CENTRICA - 6.517,00 GBP 3,336 26.803,98 0,06 0,06

COMPASS GROUP - 23.322,00 GBP 7,250 208.463,20 0,47 0,44

DIAGEO - 30.298,00 GBP 17,870 667.519,74 1,50 1,40

EASYJET PLC - 20.620,00 GBP 7,655 194.607,45 0,44 0,41

GLAXOSMITHKLINE PLC - 20.969,00 GBP 13,350 345.131,49 0,78 0,72

GLENCORE INTERNATIONAL PLC - 14.437,00 GBP 3,513 62.528,89 0,14 0,13

GRAINGER TRUST PLC - 19.992,00 GBP 1,186 29.232,54 0,07 0,06

HIGHLAND GOLD MINING LTD - 10.386,00 GBP 0,965 12.356,66 0,03 0,03

HSBC HOLDING PLC - 173.626,00 GBP 6,469 1.384.769,56 3,11 2,90

INCHCAPE PLC - 14.667,00 GBP 4,309 77.919,00 0,18 0,16

INTERCONTINENTAL HOTELS GROUP PLC - 9.259,00 GBP 17,070 194.860,23 0,44 0,41

ITV PLC - 106.966,00 GBP 1,052 138.735,34 0,31 0,29

JAZZTEL PLC - 49.124,00 EUR 5,255 258.146,62 0,58 0,54

JOHNSON MATTHEY PLC - 13.595,00 GBP 23,760 398.245,84 0,90 0,83

KINGFISHER PLC - 9.382,00 GBP 2,841 32.861,87 0,07 0,07

LLOYDS BANKING GROUP PLC - 479.487,00 GBP 0,479 283.252,61 0,64 0,59

LONDON STOCK EXCHANGE GRP PLC - 19.601,00 GBP 10,880 262.925,51 0,59 0,55

MICRO FOCUS INTERNATIONAL PLC - 15.784,00 GBP 5,820 113.257,16 0,25 0,24

MONDI PLC - 11.247,00 GBP 6,695 92.835,24 0,21 0,19

MORRISON SUPERMARKETS - 78.877,00 GBP 2,630 255.759,47 0,58 0,54

NEXT PLC - 2.817,00 GBP 37,090 128.815,84 0,29 0,27

OLD MUTUAL PLC - 45.233,00 GBP 1,782 99.377,64 0,22 0,21

PARAGON GROUP OF COS PLC - 6.942,00 GBP 2,561 21.918,95 0,05 0,05

PETROFAC LTD - 11.559,00 GBP 16,230 231.294,01 0,52 0,48

PREMIER OIL PLC - 1.246,00 GBP 3,365 5.169,26 0,01 0,01

PRUDENTIAL PLC - 5.181,00 GBP 8,655 55.284,87 0,12 0,12

RECKITT BENCKISER PLC - 11.560,00 GBP 38,790 552.844,78 1,24 1,16

RESOLUTION PLC - 67.420,00 GBP 2,475 205.726,17 0,46 0,43

RIGHTMOVE GROUP PLC - 2.996,00 GBP 14,360 53.042,24 0,12 0,11

RIO TINTO PLC - 12.754,00 GBP 35,115 552.159,67 1,24 1,16

ROLLS ROYCE GROUP PLC - 15.674,00 GBP 8,735 168.798,41 0,38 0,35

ROYAL BANK OF SCOTLAND GROUP PLC - 83.809,00 GBP 3,245 335.298,00 0,75 0,70

ROYAL DUTCH SHELL PLC -A- 42.342,00 GBP 21,220 1.107.751,50 2,49 2,32

ROYAL DUTCH SHELL PLC -A- 8.566,00 EUR 25,975 222.501,85 0,50 0,47

ROYAL DUTCH SHELL PLC -B- 22.637,00 GBP 21,750 607.021,02 1,36 1,27

SABMILLER PLC - 3.703,00 GBP 28,250 128.972,69 0,29 0,27

STANDARD CHARTERED - 37.196,00 GBP 15,735 721.586,81 1,62 1,51

SYNTHOMER PLC - 7.187,00 GBP 1,886 16.711,48 0,04 0,04

TATE&LYLE PLC - 18.592,00 GBP 7,620 174.665,32 0,39 0,37

TESCO - 36.431,00 GBP 3,360 150.916,24 0,34 0,32

TULLOW OIL INC (LON) 3.160,00 GBP 12,610 49.127,85 0,11 0,10

UNILEVER PLC - 2.806,00 GBP 23,660 81.851,76 0,18 0,17

VODAFONE GROUP PLC - 340.593,00 GBP 1,545 648.558,61 1,46 1,36

WH SMITH PLC - 16.243,00 GBP 6,700 134.173,47 0,30 0,28

WOOD GROUP (JOHN) PLC - 2.838,00 GBP 7,265 25.419,89 0,06 0,05

WPP GROUP PLC - 18.927,00 GBP 8,880 207.214,60 0,47 0,43

Total shares 44.437.395,75 99,83 93,07

Options and futures

Exchange-listed futures

Belgium

EURO - STOXX 50 MAR 13 65,00 EUR 2.615,000 1.699.750,00 3,82 3,56

U.K.

FTSE 100 ID X FUT MAR 13 24,00 GBP 5.848,000 1.730.390,83 3,89 3,62

Suspense accounts (futures)

Belgium

EURO - STOXX 50 MAR 13 -1.714.050,00 EUR 1,000 -1.714.050,00 -3,85 -3,59

U.K.

FTSE 100 ID X FUT MAR 13 -1.417.680,00 GBP 1,000 -1.747.848,60 -3,93 -3,66

Total options and futures -31.757,77 -0,07 -0,07

Warrants

France

UBI SOFT ENTERTAINMENT 10/10/2013 2.399,00 EUR 0,140 335,86 0,00 0,00

Spain

PROMOTORA DE INFORMACIONES SA CP 05/06/14 51.131,00 EUR 0,010 511,31 0,00 0,00

Total Warrants 847,17 0,00 0,00

Rights

U.K.

ROYAL DUTCH SHELL PLC CP 14/11/12 25,00 EUR 0,338 8,46

ROYAL DUTCH SHELL PLC CP 14/11/12 14,00 GBP 0,271 4,68

Total rights 13,14

TOTAL SECURITIES PORTFOLIO 44.514.519,09 100,00 93,24

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 96.819,48 EUR 1,000 96.819,48 0,20

TOTAL RECEIVED COLLATERAL 96.819,48 0,20

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CAD 264,78 CAD 1,000 201,71

KBC GROUP CHF 364,81 CHF 1,000 302,30 0,00

KBC GROUP CZK 1.853,77 CZK 1,000 73,87

KBC GROUP DKK 5.667,11 DKK 1,000 759,56 0,00

KBC GROUP EURO 1.368.627,33 EUR 1,000 1.368.627,33 2,87

KBC GROUP GBP 1.390.527,81 GBP 1,000 1.714.372,84 3,59

KBC GROUP HUF 2.928,79 HUF 1,000 10,06

KBC GROUP NOK 29.469,59 NOK 1,000 4.016,46 0,01

KBC GROUP PLN 909,89 PLN 1,000 223,00

KBC GROUP SEK -6.832,18 SEK 1,000 -796,59 0,00

KBC GROUP USD -1.186,35 USD 1,000 -899,84 0,00

KBC GROUP ZAR 573,78 ZAR 1,000 51,30

Total demand accounts 3.086.942,00 6,47

Managed futures accounts

Belgium

KBC GROUP EURO FUT REK 16.210,92 EUR 1,000 16.210,92 0,03

KBC GROUP FUT.REK.GBP 14.005,22 GBP 1,000 17.266,95 0,04

Total managed futures accounts 33.477,87 0,07

TOTAL CASH AT BANK AND IN HAND 3.120.419,87 6,54

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 349,10 EUR 1,000 349,10 0,00

KBC GROUP GBP RECEIVABLE 1.191,22 GBP 1,000 1.468,65 0,00

KBC GROUP WHT TO BE RECOVERED EUR 7.836,36 EUR 1,000 7.836,36 0,02

Netherlands

KBC CLEARING NV DEKKING EUR 127.530,00 EUR 1,000 127.530,00 0,27

Total receivables 137.184,11 0,29

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR

-96.819,48 EUR 1,000 -96.819,48 -0,20

KBC GROUP EUR PAYABLE -18.994,81 EUR 1,000 -18.994,81 -0,04

Payables -115.814,29 -0,24

TOTAL RECEIVABLES AND PAYABLES 21.369,82 0,05

OTHER

Interest receivable EUR 36.643,82 0,08

Accrued interest EUR 5.669,82 0,01

Expenses payable EUR -51.160,07 -0,11

TOTAL OTHER -8.846,43 -0,02

TOTAL NET ASSETS 47.744.281,83 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Austria 0,11 0,50 0,16 0,43 Belgium 0,22 1,87 1,51 1,97 Bermuda 0,00 0,00 0,02 0,00 Switzerland 12,13 14,69 15,99 13,11 Cyprus 0,00 0,05 0,34 0,00 Germany 14,73 12,64 12,15 12,43 Denmark 3,28 1,46 2,07 2,28 Spain 2,38 6,42 4,34 4,60 Finland 3,34 0,80 0,04 0,01 France 12,99 12,05 14,08 13,85 U.K. 31,17 32,88 33,92 35,45 Greece 0,02 0,24 0,16 0,48 Ireland 0,02 1,12 0,61 0,29 Italy 7,28 3,25 3,26 1,72 Jersey/The Channel Islands 0,00 0,32 0,31 0,38 Luxembourg 0,00 0,42 0,24 0,10 Netherlands 3,81 3,55 3,20 4,67 Norway 1,29 1,62 1,79 1,59 Portugal 0,34 0,87 0,45 0,45 Sweden 6,89 5,01 5,36 6,19 U.S.A. 0,00 0,24 0,00 0,00 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 31,40 28,44 27,93 28,79 Consum(cycl) 11,25 14,83 13,57 13,30 Cons.goods 11,78 12,48 14,71 13,23 Pharma 8,98 11,18 11,35 10,51 Financials 20,28 16,90 17,12 19,92 Technology 4,98 4,63 4,15 3,10 Telecomm. 5,12 5,31 5,67 5,79 Utilities 4,21 4,01 3,75 3,71 Real est. 1,99 2,14 1,73 1,68 Governm. 0,00 0,05 0,00 0,00 Various 0,01 0,03 0,02 -0,03 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 CHF 12,16 15,13 15,98 12,22 DKK 3,29 1,49 2,07 2,13 EUR 45,98 43,93 41,37 42,42 GBP 30,38 32,72 33,09 35,92 NOK 1,29 1,65 2,13 1,49 SEK 6,90 5,06 5,35 5,77 USD 0,00 0,02 0,01 0,05 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND QUANT EUROPE (IN

THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 30.837.942,87 20.329.735,50 51.167.678,36 Sales 18.224.565,52 19.339.464,79 37.564.030,30 Total 1 49.062.508,38 39.669.200,28 88.731.708,67 Subscriptions 29.759.570,74 23.147.904,10 52.907.474,84 Redemptions 17.379.319,76 18.893.313,05 36.272.632,81 Total 2 47.138.890,50 42.041.217,15 89.180.107,65 Monthly average of total assets

37.994.399,74 45.467.308,85 41.807.108,47

Turnover rate 5,06 % -5,22 % -1,07 %

1st half of year 2nd half of year YearPurchases 30.837.942,87 20.329.735,50 51.167.678,36 Sales 18.224.565,52 19.339.464,79 37.564.030,30 Total 1 49.062.508,38 39.669.200,28 88.731.708,67 Subscriptions 29.759.570,74 23.147.904,10 52.907.474,84 Redemptions 17.379.319,76 18.893.313,05 36.272.632,81 Total 2 47.138.890,50 42.041.217,15 89.180.107,65 Monthly average of total assets

34.943.104,16 -215.442.040,60 -3.136.315,19

Corrected turnover rate 5,50 % 1,10 % 14,30 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 96.819,48 96.819,48 N/A 31.12.2012

KBCCLEAR DEKKING EUR

EUR 127.530,00 127.530,00 N/A 31.12.2012

EUROSTOX 13/03/2013

EUR 1.699.750,00 1.699.750,00 10,00 18.12.2012

FTSE 13/03/2013 GBP 1.403.520,00 1.730.390,83 10,00 18.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 778.375,55 812.712,55 516.813,54 516.813,54

2011 - 12 367.266,00 881.026,54 3.053,00 3.053,00

2012 - 12 6.000,00 5.036,00 4.017,00 4.017,00

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 245.162.481,08 250.430.647,62

2011 - 12 124.827.934,70 267.431.722,47

2012 - 12 1.933.511,61 1.625.812,57

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 176.977.169,58 342,44

2011 - 12 909.316,58 297,84

2012 - 12 1.405.733,65 349,95

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 180.573,00 98.713,00 81.860,00 81.860,00

2012 - 12 158.361,23 108.177,53 132.043,70 132.043,70

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 50.445.092,37 28.906.414,80

2012 - 12 51.322.132,98 35.022.400,50

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 24.394.789,45 298,01

2012 - 12 46.338.548,18 350,93

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0947465663 EUR 17.21% 4.16% -5.54% 28/09/2007 -6.60%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228905509 EUR 17.47% 24/11/2011 27.36%

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. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Capitalization: 1.95% Institutional B Shares Capitalization: 1.711% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 7,185 4,425 61.58%

CSFBSAS 17,950 10,886 60.65%

DEUTSCHE 19,868 12,066 60.73%

EQ CSA MACQUARIE 1,616 1,010 62.50%

MORGAN STANLEY 8,042 5,404 67.19%

NOMURA 6,282 3,926 62.50%

SOCGEN 99 49 50.00%

UBSWDR 6,034 3,416 56.62%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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. Financial derivatives on financial indices The following financial indices were used as the underlying for financial derivatives: The Euro Stoxx 50 is a weighted equity index computed by Stoxx Ltd. The dividend is not reinvested. The main purpose of this index is to provide a continuous indication of market trends on the European stock markets. The base value of the index is 1000, calculated on the basis of the underlying prices recorded on 31 December 1991. The Euro Stoxx 50 consists solely of shares from countries participating in the Economic and Monetary Union, with the exception of Luxembourg. On 10 April 1998, the following stock exchanges were included in the index: Austria (Vienna), Belgium (Brussels), Finland (Helsinki), France (Paris), Germany (Frankfurt), Italy (Milan), Ireland (Dublin), the Netherlands (Amsterdam), Portugal (Lisbon) and Spain (Madrid). The index consists of the 50 largest European shares in terms of shares that are freely negotiable, and the shares are accordingly weighted on the basis of this criterion. The Euro Stoxx 50 is published daily in L’Echo, De Tijd, The Financial Times and The Wall Street Journal Europe. Stoxx Limited has all proprietary rights with repect to the index. In no way Stoxx Limited endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Stoxx Limited disclaims any liability for the issue and offering of the shares of this undertaking for collective investment.

The FTSE 100 is an equity index computed by the Financial Times Ltd. The dividend is not reinvested. It comprises 100 shares. The FTSE 100 serves primarily as a continuous indicator of market trends on the UK stock market. The value of the FTSE 100 is based on the market value of the shares of 100 companies listed on the London Stock Exchange. These are the companies with the biggest market capitalisation, and the shares are weighted accordingly. The base value of the index is 1000, calculated on the basis of the underlying prices recorded on 3 January 1984. The FTSE 100 is published daily in the leading financial newspapers, i.e. The Financial Times and The Wall Street Journal Europe. In Belgium, the index is published in De Tijd and L’Echo. Financial Times Ltd has all proprietary rights with repect to the index. In no way Financial Times Ltd endorses, sponsors or is otherwise involved in the issue and offering the shares of this undertaking for collective investment. Financial Times Ltd disclaims any liability for the issue and offering of the shares of this undertaking for collective investment. The value and, if available for distribution, the composition of the aforementioned financial indices may be obtained from the branches providing the financial service. Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to -16.522,30 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

IBERDROLA SA EUR 13.719 4,195 57.551,20

LUNDBERGS AB -B- SEK 1.178 229,900 31.576,14

Total 89.127,34

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FRANCE - 04/55 4.00 % 25/04 EUR 79.000 EUR 96.819,48

Total 96.819,48 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund High Dividend New Markets

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND HIGH DIVIDEND NEW MARKETS

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 28 September 2007 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 370.52 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions. Derivatives may be used to partially hedge the open exchange risk in relation to the reference currency (euro). Where appropriate, they may therefore limit the foreign exchange risk expressed in euros, and hence the market risk and performance risk too. To the extent that derivatives are used, it concerns liquid and readily negotiable instruments. They do not, therefore, affect the liquidity risk. To the extent that derivatives are used, they are used to carry out the investment policy and within the limits of the investment strategy. They do not affect the market, performance and concentration risks or the risks associated with external factors or of any kind.

Strategy selected The assets are invested primarily in shares with a high dividend yield of companies in countries where conditions are such as to ensure accelerated economic growth in the short or medium term, more specifically countries in Asia, Latin America, Central Europe and Eastern Europe. Risk concentration Emerging market shares.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT The management company has delegated the intellectual management, to KBC Fund Management Limited, Joshua Dawson House, Dawson Street , Dublin 2, IRELAND.. KBC Fund Management Limited has delegated the intellectual management, to Kleinwort Benson Investors Dublin Ltd, Joshua Dawson House Dawson Street , Dublin 2, IRELAND.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR Introduction: The KBC Equity Fund High Dividend New Markets Fund invests primarily in emerging market shares that achieve a higher-than-average dividend yield within their industry and region. Dividend yield is not only an important valuation criterion for shares; it also provides a basic return. The fund avoids classic style exposure through industry group and regional neutrality. Focussing on the high dividend theme, we aim to achieve a neutral industry group allocation. This means that we look for shares with higher-than-average dividend yields and equity scores in every sector. Consequently, there are also shares in the portfolio that appear at first sight to have a low dividend yield. Summary of Performance: The two main performance drivers for this fund are the high dividend theme and stock-picking. 1) Theme: Emerging markets had a very strong start to the year out-performing global developed markets by approximately 240 basis points in Q1. In Euro terms, the MSCI World TR Index was up +8.9%, while the MSCI EM TR Index was up +11.3% for the 3 month period. EMEA was by far the best performing region as fears over the Euro crisis subsided, rising by 13% over the quarter. The best performing countries in MSCI EM were Egypt, Turkey and Hungary all located in the EMEA region. Latin America wasn’t too far behind at +11.8% and Asia performed admirably at 10.5% A closer look at absolute returns show that January and February were particularly strong. Emerging countries out-performed developed markets with ample liquidity and attractive valuations being the key themes. However in March, we saw a small reversal, as momentum faded based on worries over Chinese growth and some hawkish commentary from EM central banks. The theme of high dividend struggled just like it did in the developed world as investors piled back into the markets driving stock prices up considerably. The worst performing industries in EM over the 3 months of Q1 were Telecoms, Utilities and Energy, all traditional high dividend payers. In Q2 the theme of high dividend performed similarly to that which we witnessed in developed markets – very strong in traditional high dividend industries like real estate, pharmaceuticals and food, beverage & tobacco. However as you moved away from these industries, higher dividend stocks did not perform as well. Therefore our regional and industry group neutral version of the theme added little value to the performance of the fund. EM markets rebounded strongly during Q3. They lagged only European markets in terms of best performing regions throughout the globe. Internally Asia and EMEA were very strong performers with Latin America bringing up the rear despite solid performance. In terms of the theme we witnessed a mixed quarter. In total, it detracted from performance by a small margin. Overall one would assume that there were no clear trends but there were large swings in styles intra-quarter. When risk was “on” and markets were moving steadily upwards, the theme tended to struggle, underperforming the MSCI Emerging Markets Index. When we witnessed some weakness in the markets (especially evident during August), the theme outperformed strongly. This is how we expect the more defensive make up of the theme to act. As a rule Q4 2012 was a good environment for high dividend investing. Industries like financials and materials offer strong DY’s and with the continued rotation into these sectors, the theme of high dividends thrived. Our all industry all region approach to constructing the theme will have added value to our overall performance. 2) Stock-picking: On an overall basis, our stock picking in Emerging Markets added value during 2012 although quarter on quarter stock picking performance was a mixed bag. On a regional level the Latin American region was by far, our best contributor to performance. Emerging markets performed very positively during 2012 particularly in Emerging Asia and Emerging Europe. Latin American markets were weaker albeit positive and this is where we achieved the bulk of our stock picking added value. We managed to avoid many of the big losers predominantly during Q2 especially in Brazil. Being underweight stocks like Petrobras, ItauUnibanco and OGX Petroleo added significant value to our stock picking.

Stock-picking was mildly negative during the second half of 2012 which detracted from our relative performance. Given our focus on stocks that generate consistent dividends over the long term we tend to have a bias towards stocks with high return on equity and high return on invested capital. We believe that such companies will prosper in a moderate growth environment. However when monetary policy is eased investors tend to invest in the lower quality segment of the market in the belief that such companies will be given the opportunity to participate in the recovery. During such a rally high quality names will tend to lag the market and that was a feature during the latter weeks of the quarter. We achieved positive relative performance over the year particularly in Media, Retailing, Semi-Conductor & Semi-Conductor Equipment and Household & Personal Products industry groups.

2.1.8 FUTURE POLICY There was a significant re-rating of emerging markets in 2012 as earnings were broadly unchanged over the year. Large earnings downgrades occurred in Latin America and EMEA. The key factors in 2013 will be economic growth across the region and earnings momentum. As we enter 2013 we anticipate that companies will manage margins in a more efficient manner with an increased emphasis on balance sheet management. Overall Emerging Markets still are taking their lead from the fragile and volatile macro background especially in developed markets, and the pivotal support role played by global authorities will remain necessary. Stock picking will be increasingly important as those companies that continue to deliver solid earnings above the more anaemic economic growth levels will continue to be rewarded. The search for yield and income will remain a prevalent theme so a key focus for stock picking should be on companies that are delivering high, growing, and sustainable dividends.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 213.636.044,41 93.626.171,45

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds a} Collateral received in the form of bonds 5.492.361,36 605.066,21 C. Shares and similar instruments a) Shares 203.548.909,45 91.574.839,79 Of which securities lent 4.893.830,52 1.365.319,14 D. Other securities 454,34 E. Open-end undertakings for collective investment 8.214.067,25 2.453.115,11

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 167.950,05 9.398,38 B. Payables a) Accounts payable (-) -177.971,31 -58.201,56 c) Borrowings (-) -96.699,55 -430.421,50 d) Collateral (-) -5.492.361,36 -605.066,21

V. Deposits and cash at bank and in hand A. Demand balances at banks 1.716.011,86 94.584,27

VI. Accruals and deferrals A. Expense to be carried forward 7.607,53 B. Accrued income 507.066,56 130.299,33 C. Accrued expense (-) -243.289,90 -155.504,24

TOTAL SHAREHOLDERS' EQUITY 213.636.044,41 93.626.171,45

A. Capital 194.571.668,87 99.091.084,09

B. Income equalization 500.503,13 -2.953.661,93

C. Profit(Loss) carried forward 32.512.256,86

D. Result for the period 18.563.872,41 -35.023.507,57

Off-balance-sheet headings

I Collateral (+/-)

I.A Collateral (+/-)

I.A.A Securities/market instruments 5.492.361,36 605.066,21

IX Financial instruments lent 4.893.830,52 1.365.319,14

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments C. Shares and similar instruments a) Shares 16.820.901,23 -27.481.818,23 D. Other securities -626,02 -43.509,08 E. Open-end undertakings for collective investment 730.220,76 -1.794.040,73 G. Receivables, deposits, cash at bank and in hand

and payables -0,04

H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions -3.575.799,87 -8.486.511,64

II. Investment income and expenses A. Dividends 7.557.769,65 5.943.391,36 B. Interests a) Securities and money market instruments 100.392,42 60.171,50 b) Cash at bank and in hand and deposits 13.455,72 8.395,84 C. Interest on borrowings (-) -24.447,30 -13.495,40

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

913.475,75 66.714,32

B. Other 4.095,67

IV. Operating expenses A. Investment transaction and delivery costs (-) -826.369,47 -704.038,86 B. Financial expenses (-) -2.076,77 -24.046,54 C. Custodian's fee (-) -80.813,32 -147.944,40 D. Manager's fee (-) a) Financial management Classic Shares -333.354,33 -1.986.924,07 Institutional B Shares -2.347.855,19 -142.707,45 b) Administration and accounting management -182.060,89 -138.284,29 E. Administrative expenses (-) -404,30 -227,65 F. Formation and organisation expenses (-) -12.555,43 -15.492,27 G. Remuneration, social security charges and

pension -13,77 -34,21

H. Services and sundry goods (-) -28.290,03 -30.820,39 J. Taxes Classic Shares -17.532,91 -73.025,86 Institutional B Shares -22.316,13 41.957,31 K. Other expenses (-) -117.827,35 -65.312,50

Income and expenditure for the period Subtotal II + III + IV 4.589.176,35 2.782.372,11

V. Profit (loss) on ordinary activities before tax 18.563.872,41 -35.023.507,57

VII. Result for the period 18.563.872,41 -35.023.507,57

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 19.064.375,54 -5.464.912,64 Profit (loss) brought forward from the previous

financial year 32.512.256,86

Profit for the period available for appropriation 18.563.872,41 -35.023.507,57 Income on the creation of shares (income on the

cancellation of shares) 500.503,13 -2.953.661,93

II. (Appropriations to) Deductions from capital -18.948.820,17 5.570.293,09

IV. (Dividends to be paid out) -115.555,37 -105.380,45

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND HIGH DIVIDEND NEW MARKETS

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Investment funds

Open-end funds

UCITS registered with the FSMA

Belgium

HORIZON ACCESS INDIA FD KAP 10.267,00 USD 1.054,780 8.214.067,25 7,05 3,88 3,85

Total investment funds 8.214.067,25 3,88 3,85

Shares

Exchange-listed shares

Brazil

AMBEV-CIA DE BEBIDAS DAS AMERICAS PREF 111.200,00 BRL 85,580 3.525.280,98 1,67 1,65

ARTERIS SA - 122.200,00 BRL 18,950 857.821,82 0,41 0,40

BANRISUL - 137.100,00 BRL 15,510 787.709,21 0,37 0,37

BR PROPERTIES SA - 71.500,00 BRL 25,500 675.402,85 0,32 0,32

BRADESPAR S.A. PREF 207.900,00 BRL 32,830 2.528.378,22 1,19 1,18

CEMIG-CIA ENERGETICA DE MINAS GERAIS PREF 348.200,00 BRL 22,600 2.915.102,80 1,38 1,37

CIA BRAS DISTRIB GRUPO PAO DE ACUCAR PREF B 28.519,00 BRL 90,500 956.091,68 0,45 0,45

COMPANHIA BRASILEIRA DE MEIOS - 49.075,00 BRL 56,990 1.036.037,88 0,49 0,49

CSN-CIA SIDERURGICA NACIONAL S.A. - 396.176,00 BRL 11,860 1.740.562,09 0,82 0,82

LOJAS RENNER SA - 52.100,00 BRL 79,750 1.539.164,66 0,73 0,72

MRV ENGENHARIA E PARTICIPACOES SA - 191.000,00 BRL 11,980 847.631,04 0,40 0,40

PORTO SEGURO SA - 66.000,00 BRL 23,490 574.306,35 0,27 0,27

TELEF BRASIL PREF 35,00 BRL 49,000 635,30

TIM PARTICIPACOES SA - 203.103,00 BRL 8,200 616.945,58 0,29 0,29

ULTRAPAR PARTICIPACOES SA - 19.700,00 BRL 46,290 337.808,11 0,16 0,16

Cayman Islands

SOHO CHINA LTD - 995.500,00 HKD 6,220 605.948,90 0,29 0,28

TENCENT HOLDINGS - 61.900,00 HKD 249,000 1.508.322,98 0,71 0,71

Chile

BANCO DE CHILE "ADR" 5.900,00 USD 96,500 431.849,21 0,20 0,20

BANCO SANTANDER CHILE ADR 261.377,00 USD 28,490 5.648.233,26 2,67 2,64

China

ANTA SPORTS PRODUCTS LTD - 2.134.000,00 HKD 6,860 1.432.593,19 0,68 0,67

BANK OF CHINA LTD - H - 13.883.195,00 HKD 3,460 4.700.779,42 2,22 2,20

CHINA BLUECHEMICAL LTD - 1.368.000,00 HKD 5,200 696.135,52 0,33 0,33

CHINA CONSTRUCTION BANK - 9.310.000,00 HKD 6,220 5.666.885,22 2,68 2,65

CHINA MINSHENG BANKING CORP LT - 1.103.000,00 HKD 8,960 967.136,72 0,46 0,45

DONGFENG MOTOR CORP - 262.000,00 HKD 11,960 306.645,66 0,15 0,14

GOME ELECTRICAL APPLIANCES HLD - 478,00 HKD 0,920 43,03

GREAT WALL MOTOR CO LTD - 357.093,00 HKD 24,450 854.406,51 0,40 0,40

GUANGZHOU R&F PROPERTIES - 1.039.200,00 HKD 12,900 1.311.877,24 0,62 0,61

IND & COMM BK OF CHINA - 9.997.000,00 HKD 5,500 5.380.674,65 2,54 2,52

JIANGSU EXPRESSWAY COMP LTD - 2.632.000,00 HKD 7,990 2.057.960,41 0,97 0,96

JIANGXI COPPER COMPANY LTD. -H- 1.506.000,00 HKD 20,400 3.006.488,11 1,42 1,41

PETROCHINA COMPANY LIMITID - 3.573.339,00 HKD 10,980 3.839.555,15 1,81 1,80

SINOPEC-CHINA PETROL & CHEM CORP. "A" 3.218.564,00 HKD 8,780 2.765.419,47 1,31 1,29

YANZHOU COAL MINING CO LTD - 244.000,00 HKD 12,820 306.113,30 0,15 0,14

ZHEJIANG EXPRESSWAY CO. - 2.166.000,00 HKD 6,100 1.292.982,47 0,61 0,61

Colombia

ECOPETROL SA - 125.691,00 USD 59,670 5.688.699,92 2,69 2,66

Czech Republic

CEZ A.S. - 55.636,00 CZK 680,000 1.507.510,36 0,71 0,71

KOMERCNI BANKA - 4.500,00 CZK 4.010,000 719.038,89 0,34 0,34

Hong Kong

CHINA MOBILE LTD. - 511.000,00 HKD 90,250 4.513.074,07 2,13 2,11

CNOOC LTD - 1.624.020,00 HKD 16,780 2.666.783,02 1,26 1,25

GUANGDONG INVESTMENT - 1.290.000,00 HKD 6,090 768.796,42 0,36 0,36

India

TAMBANG BATUBARA BUKIT ASAM TB - 253.000,00 IDR 15.100,000 300.666,61 0,14 0,14

Indonesia

INDO FOOD - 1.086.500,00 IDR 5.850,000 500.234,14 0,24 0,23

PERUSAHAAN GAS NEGARA PT - 2.198.854,00 IDR 4.600,000 796.052,95 0,38 0,37

PT ASTRA INTL REG 3.261.790,00 IDR 7.600,000 1.951.000,23 0,92 0,91

PT TELEKOMUNIKAS 'B' SCRIPLESS 894.500,00 IDR 9.050,000 637.113,28 0,30 0,30

PT UNITED TRACTORS - 548.000,00 IDR 19.700,000 849.639,15 0,40 0,40

Malaysia

ALLIANCE FINANCIAL GROUP BHD - 1.266.600,00 MYR 4,400 1.382.305,23 0,65 0,65

AMBANK HOLDINGS BERHAD - 1.065.600,00 MYR 6,800 1.797.276,58 0,85 0,84

KUALA LUMPUR KEPONG BERHAD - 138.700,00 MYR 24,000 825.656,67 0,39 0,39

PARKSON HOLDINGS BHD - 402.900,00 MYR 5,200 519.651,76 0,25 0,24

PETRONAS GAS BHD - 150.700,00 MYR 19,520 729.633,65 0,35 0,34

UNITED MOTOR WORKS HLDG - 781.800,00 MYR 11,940 2.315.324,06 1,09 1,08

Mexico

ALFA SA DE CV - 372.200,00 MXN 27,380 595.231,30 0,28 0,28

COMPARTAMOS SAB DE CV - 783.307,00 MXN 18,370 840.460,12 0,40 0,39

GRUPO CARSO SA SER A1 196.700,00 MXN 62,550 718.633,77 0,34 0,34

GRUPO FIN.INBURSA 'O' 865.700,00 MXN 39,210 1.982.623,30 0,94 0,93

GRUPO MODELA "C" 269.600,00 MXN 116,020 1.826.958,55 0,86 0,86

GRUPOMEXICO SA -B- 912.938,00 MXN 46,750 2.492.865,49 1,18 1,17

KIMBERLY "A" 423.500,00 MXN 32,960 815.298,35 0,39 0,38

WAL-MART DE MEXICO SA DE CV "V" 540.100,00 MXN 42,330 1.335.360,09 0,63 0,63

Peru

SOUTHERN COPPER CORP (NYSE) 111.405,00 USD 37,860 3.199.175,74 1,51 1,50

Philippines

ABOITIZ EQUITY VENTURES INC - 2.451.900,00 PHP 52,950 2.398.148,86 1,13 1,12

AYALA CORP PREFERRED 13.327,00 PHP 517,000 127.271,26 0,06 0,06

BANK OF THE PHILIPPINE ISLAND - 664.270,00 PHP 95,000 1.165.670,12 0,55 0,55

Poland

ASSECO POLAND SA - 41.590,00 PLN 45,350 462.247,02 0,22 0,22

POWOSZECHNA KASA OSZCZEDNOSCI BANK - 242.845,00 PLN 36,900 2.196.157,27 1,04 1,03

POWSZECHNY BANK KREDYTOWY SA - 17.301,00 PLN 437,000 1.852.936,55 0,88 0,87

Russia

GAZPROM ADR NEW 636.224,00 USD 9,460 4.565.138,83 2,16 2,14

LUKOIL - 54.229,00 USD 66,150 2.720.910,46 1,29 1,27

ROSTELECOM SPON ADR NEW 28.814,00 USD 23,880 521.904,07 0,25 0,24

SBERBANK OF RUSSIA ADR 36.306,00 USD 12,560 345.876,33 0,16 0,16

South Africa

ABSA GROUP LTD - 149.241,00 ZAR 164,000 2.188.088,83 1,03 1,02

AFRICAN BANK INVESTMENTS LIMITED - 422.560,00 ZAR 32,200 1.216.402,22 0,57 0,57

KUMBA RESOURCES LTD - 93.132,00 ZAR 568,880 4.736.445,51 2,24 2,22

MTN GROUP LTD. - 130.907,00 ZAR 177,600 2.078.446,17 0,98 0,97

NASPERS LTD N 23.104,00 ZAR 543,200 1.121.966,49 0,53 0,53

REDEFINE INCOME FUND LTD - 324.619,00 ZAR 9,400 272.793,95 0,13 0,13

REUNERT LTD - 214.845,00 ZAR 75,350 1.447.243,00 0,68 0,68

RMB HOLDINGS LTD - 70.760,00 ZAR 40,700 257.463,21 0,12 0,12

SASOL LTD - 28.505,00 ZAR 362,800 924.530,57 0,44 0,43

STANDARD BANK GROUP LTD - 144.289,00 ZAR 118,880 1.533.468,89 0,72 0,72

THE SPAR GROUP LTD - 189.607,00 ZAR 131,850 2.234.948,14 1,06 1,05

TIGER BRANDS LTD. - 9.794,00 ZAR 325,250 284.780,57 0,13 0,13

TRUWORTHS INTERNATIONAL LTD - 94.593,00 ZAR 108,670 918.970,60 0,43 0,43

South Korea

DONGBU INSURANCE CO LTD - 73.982,00 KRW 45.950,000 2.408.496,86 1,14 1,13

HYUNDAI HEAVY INDUSTRIES - 1.807,00 KRW 242.000,000 309.818,98 0,15 0,15

HYUNDAI MARINE & FIRE INSURANCE CO - 83.130,00 KRW 33.300,000 1.961.266,07 0,93 0,92

HYUNDAI SECURITIES - 7,00 KRW 9.010,000 44,68

INDUSTRIAL BANK OF KOREA - 161.490,00 KRW 11.850,000 1.355.808,92 0,64 0,64

KANGWON LAND INC - 83.830,00 KRW 29.250,000 1.737.240,07 0,82 0,81

KT CORPORATION - 54.627,00 KRW 35.500,000 1.373.947,71 0,65 0,64

KT&G CORPORATION - 84.331,00 KRW 80.800,000 4.827.620,39 2,28 2,26

SAMSUNG ENGINEERING CO LTD - 3.612,00 KRW 165.500,000 423.526,16 0,20 0,20

SAMSUNG FIRE & MARINE INSURANCE CO - 6.966,00 KRW 218.000,000 1.075.906,34 0,51 0,50

SAMSUNG HEAVY INDUSTRIES CO, LTD - 71.570,00 KRW 38.550,000 1.954.744,06 0,92 0,92

SK TELECOM CO LTD - 24.417,00 KRW 152.500,000 2.638.132,77 1,25 1,24

S1 CORP - 22.300,00 KRW 69.900,000 1.104.374,93 0,52 0,52

Taiwan

CHENG SHIN RUBBER IND CO LTD - 399,00 TWD 75,400 785,81

CHICONY ELECTRONICS CO LTD - 1.302.262,00 TWD 67,100 2.282.402,51 1,08 1,07

COMPAL ELECTRONICS - 2.761.451,00 TWD 19,550 1.410.117,98 0,67 0,66

DELTA ELECTRONIC INDUSTRIAL - 216,00 TWD 106,500 600,86

FARGLORY LAND DEVELOPMENT CO LTD - 1.403.000,00 TWD 52,100 1.909.267,34 0,90 0,89

GIANT MANUFACTURING CO LTD - 73.000,00 TWD 166,500 317.474,21 0,15 0,15

HIGHWEALTH CONSTRUCTION CORP - 353.200,00 TWD 54,600 503.714,77 0,24 0,24

HTC CORPORATION - 281.187,00 TWD 300,500 2.207.044,36 1,04 1,03

LITE-ON TECHNOLOGY CORP - 1.034.805,00 TWD 38,550 1.041.967,68 0,49 0,49

MEDIATEK INCORPORATION - 96.279,00 TWD 323,500 813.536,80 0,38 0,38

MSTAR SEMICONDUCTOR INC - 230.010,00 TWD 218,000 1.309.708,24 0,62 0,61

NOVATEK MICROELECTRONICS CORP - 572.000,00 TWD 117,500 1.755.517,83 0,83 0,82

POWERTECH TECHNOLOGY INC - 800,00 TWD 46,950 981,06

PRESIDENT CHAIN STORE CORP - 373.000,00 TWD 155,500 1.514.992,82 0,72 0,71

QUANTA COMPUTER INC - 398.000,00 TWD 68,300 710.027,43 0,34 0,33

RICHTEK TECHNOLOGY CORP - 249.550,00 TWD 169,500 1.104.838,06 0,52 0,52

TAIWAN SEMICONDUCTOR - 4.433.000,00 TWD 97,000 11.231.578,95 5,31 5,26

TECO ELECTRIC AND MACHINERY CO - 1.994.000,00 TWD 22,250 1.158.848,11 0,55 0,54

TSRC CORP - 3.505.270,00 TWD 59,000 5.401.878,80 2,55 2,53

WISTRON CORP - 956,00 TWD 30,100 751,62

WPG HOLDINGS CO LTD - 8.370,00 TWD 38,000 8.307,69 0,00 0,00

Thailand

BANPU PUBLIC CO LTD FOR REG 49.500,00 THB 412,000 505.679,41 0,24 0,24

PTT PLC -FOR- 92.200,00 THB 332,000 759.000,15 0,36 0,36

SIAM COMM. BK. PUBL. CO. FOREIGN 505.700,00 THB 181,500 2.275.843,73 1,08 1,07

Turkey

ARCELIK AS - 135.098,00 TRY 11,700 671.758,01 0,32 0,31

EREGLI DEMIR VE CELIK FABRIK - 285.207,00 TRY 2,450 296.964,36 0,14 0,14

TUPRAS-TURKIYE PETROL RAF. A.S. - 75.841,00 TRY 51,500 1.659.928,39 0,78 0,78

TURK TELEKOMUNIKASYON AS - 666.002,00 TRY 6,920 1.958.662,92 0,93 0,92

Total shares 203.548.909,45 96,12 95,28

TOTAL SECURITIES PORTFOLIO 211.762.976,70 100,00 99,12

COLLATERAL RECEIVED

Belgium

KBC GROUP COLLATERAL EUR 5.492.361,36 EUR 1,000 5.492.361,36 2,57

TOTAL RECEIVED COLLATERAL 5.492.361,36 2,57

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP CZK -146,88 CZK 1,000 -5,85

KBC GROUP EURO 1.715.794,57 EUR 1,000 1.715.794,57 0,80

KBC GROUP HKD -72,67 HKD 1,000 -7,11

KBC GROUP HUF 4.638,46 HUF 1,000 15,93

KBC GROUP MXN 3.447,39 MXN 1,000 201,36

KBC GROUP PLN -157,11 PLN 1,000 -38,50

KBC GROUP TRY -231,85 TRY 1,000 -98,53

KBC GROUP USD -125.672,90 USD 1,000 -95.322,28 -0,05

KBC GROUP ZAR -13.728,11 ZAR 1,000 -1.227,28 0,00

Total demand accounts 1.619.312,31 0,76

TOTAL CASH AT BANK AND IN HAND 1.619.312,31 0,76

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 72.895,32 EUR 1,000 72.895,32 0,03

KBC GROUP USD RECEIVABLE 125.320,15 USD 1,000 95.054,73 0,04

Total receivables 167.950,05 0,08

Payables

Belgium

KBC GROUP COUNTERPART ENTRY COLLATERAL IN EUR -5.492.361,36 EUR 1,000 -5.492.361,36 -2,57

KBC GROUP EUR PAYABLE -177.971,31 EUR 1,000 -177.971,31 -0,08

Payables -5.670.332,67 -2,65

TOTAL RECEIVABLES AND PAYABLES -5.502.382,62 -2,58

OTHER

Interest receivable EUR 505.576,35 0,24

Accrued interest EUR 1.490,21 0,00

Expenses payable EUR -243.289,90 -0,11

TOTAL OTHER 263.776,66 0,12

TOTAL NET ASSETS 213.636.044,41 100,00

Geographic breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Belgium -0,01 0,01 0,01 0,01 Brazil 15,87 12,52 9,85 8,94 Chile 0,00 1,44 2,60 2,87 China 11,97 10,76 11,67 16,33 Colombia 0,00 3,76 2,95 2,69 Czech Republic 2,12 2,27 1,18 1,05 Cayman Islands 0,80 1,30 1,49 1,00 Hong Kong 2,46 2,93 5,47 3,75 India 9,15 4,47 3,60 3,98 Indonesia 1,99 2,68 2,71 2,26 South Korea 12,71 12,41 9,33 10,00 Mexico 4,53 2,98 4,95 5,01 Malaysia 3,49 4,95 5,12 3,57 Peru 0,00 1,90 1,54 1,51 Philippines 0,54 1,23 1,68 1,74 Poland 1,34 1,00 1,69 2,13 Russia 2,99 4,93 4,30 3,85 Thailand 1,20 1,62 1,98 1,67 Turkey 2,96 1,65 2,27 2,17 Taiwan 13,43 17,07 16,60 16,40 U.S.A. 2,33 0,00 0,00 0,00 South Africa 9,69 7,65 8,46 9,07 Zaire 0,44 0,47 0,55 0,00 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 Cyclicals 35,75 33,79 29,50 27,86 Consum(cycl) 5,09 6,65 7,17 6,99 Cons.goods 7,47 8,58 10,70 10,54 Pharma 0,32 0,14 0,32 0,22 Financials 25,68 23,64 24,11 27,50 Technology 12,25 13,12 13,32 13,43 Telecomm. 7,43 8,16 8,00 6,85 Utilities 3,46 3,54 4,39 3,68 Real est. 2,55 2,38 2,49 2,93 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

30/06/2011 31/12/2011 30/06/2012 31/12/2012 BRL 16,06 12,57 10,37 8,88 CZK 2,14 2,28 1,33 1,04 EUR -4,32 -0,51 -2,18 0,76 HKD 15,47 15,05 19,28 20,92 IDR 4,04 4,57 3,05 2,36 INR 7,44 2,62 3,36 3,90 KRW 12,91 12,46 9,43 9,92 MXN 4,56 3,01 5,05 4,97 MYR 3,61 4,97 4,80 3,55 PHP 0,55 1,23 1,72 1,73 PLN 1,35 1,01 1,72 2,11 THB 1,22 1,63 2,00 1,66 TRY 3,01 1,65 2,36 2,15 TWD 14,46 17,14 17,13 16,26 USD 7,28 12,15 11,38 10,78 ZAR 10,22 8,17 9,20 9,01 Total 100,00 100,00 100,00 100,00

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC EQUITY FUND HIGH DIVIDEND NEW

MARKETS (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year Purchases 141.609.659,56 145.334.850,50 286.944.510,07 Sales 71.229.279,97 111.880.769,10 183.110.049,06 Total 1 212.838.939,53 257.215.619,60 470.054.559,13 Subscriptions 130.204.501,25 121.408.776,46 251.613.277,71 Redemptions 62.131.097,33 87.579.304,24 149.710.401,57 Total 2 192.335.598,58 208.988.080,70 401.323.679,28 Monthly average of total assets

165.726.530,68 197.332.747,53 181.924.716,81

Turnover rate 12,37 % 24,44 % 37,78 %

1st half of year 2nd half of year YearPurchases 141.609.659,56 145.334.850,50 286.944.510,07 Sales 71.229.279,97 111.880.769,10 183.110.049,06 Total 1 212.838.939,53 257.215.619,60 470.054.559,13 Subscriptions 130.204.501,25 121.408.776,46 251.613.277,71 Redemptions 62.131.097,33 87.579.304,24 149.710.401,57 Total 2 192.335.598,58 208.988.080,70 401.323.679,28 Monthly average of total assets

173.243.269,56 188.455.077,57 171.556.997,36

Corrected turnover rate 11,84 % 25,59 % 40,06 %

The table above shows the capital volume of portfolio transactions. This volume (adjusted to take account of total subscriptions 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 is available for consultation free of charge at the registered office of the Bevek or fund at Havenlaan 2, 1080 Brussels.

2.4.3 AMOUNT OF COMMITMENTS IN RESPECT OF FINANCIAL DERIVATIVES POSITIONS

NAME Currency Value in currency

In the currency of the sub-fund

Lot-size

Transactiondate

KBC COLLATERAL EUR

EUR 5.492.361,36 5.492.361,36 N/A 31.12.2012

2.4.4 CHANGES OF THE NUMBER OF SUBSCRIPTIONS AND REDEMPTIONS AND THE NET ASSET

VALUE

Classic Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2010 - 12 610.966,59 7.469,04 301.299,49 1.097,00 401.381,93 12.005,24 413.387,17

2011 - 12 303.167,66 4.086,22 668.898,65 4.130,00 35.650,94 11.961,46 47.612,40

2012 - 12 24.380,94 1.711,25 20.779,73 2.296,35 39.252,16 11.376,36 50.628,52

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2010 - 12 256.638.702,97 3.140.598,76 124.537.822,73 434.618,87

2011 - 12 131.692.863,66 1.771.792,72 267.857.215,65 1.627.206,90

2012 - 12 10.706.893,78 716.849,79 9.130.677,17 960.010,51

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2010 - 12 195.085.941,45 472,28 460,04

2011 - 12 18.843.599,68 399,38 385,01

2012 - 12 23.188.035,11 463,78 438,06

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2011 - 12 224.977,00 37.783,00 187.194,00 187.194,00

2012 - 12 548.114,21 325.137,70 410.170,51 410.170,51

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution

2011 - 12 84.128.986,05 14.482.250,22

2012 - 12 242.823.963,72 142.609.296,10

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution

2011 - 12 74.782.571,76 399,49

2012 - 12 190.448.009,29 464,31

2.4.5 PERFORMANCE FIGURES

Classic Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0947467685 EUR 15.41% 7.43% -0.06% 28/09/2007 -1.49%

DIV BE0947466679 EUR 15.47% 7.46% -0.05% 28/09/2007 -1.48%

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

Institutional B Shares

Cap Div

ISIN code Cur-

rency

1 Year 3 Years* 5 Years* 10 Years* Since launch*

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228915607 EUR 15.55% 25/11/2011 22.33%

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. 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 incorporated geometrically 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-X

Return 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

Distribution units (DIV) Return on date D over a period of X years:

[ C * NIW(D) / NIW(Y)] ^ [1 / X] - 1 where Y = D-X

Return 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 a return 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 and redemption of units.

These are the performance figures for capitalisation and distribution shares.

Institutional B Shares The bar chart shows the performance for full financial years. 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. 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-X

Return 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

If the interval between the two dates exceeds one year, the ordinary return calculation is converted into a return 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 and redemption of units.

These are the performance figures for capitalization shares.

Dividend on ex-dividend date 28/03/2013: 7.62 EUR net (10.16 EUR gross).

2.4.6 COSTS Total expense ratio (TER): * Classic Shares Distribution: 1.765% Classic Shares Capitalization: 1.815% Institutional B Shares Capitalization: 1.796% * The following costs have not been included in the TER: - Transaction charges - Interest payments on loans taken out - Payments in respect of financial derivatives - Fees and charges paid directly by the investor - Any soft commissions

SOFT COMMISSIONS The management company or the appointed manager, as the case may be, is the recipient of soft commissions. The recipient has laid down an internal policy as regards accepting soft commissions and avoiding possible conflicts of interest in this respect, and has put appropriate internal controls in place to ensure this policy is observed. For more information, please see the ‘General’ section of the annual report.

Broker

Commission gross

in EUR

paid during the period:

1‐01‐12

 ‐ 

31‐12‐12

CSA Credits

in EUR

accrued during the period:

1‐01‐12

 ‐ 

31‐12‐12 Percentage

CITI 79,795 47,755 59.85%

CSFBSAS 17,678 11,277 63.79%

DEUTSCHE 1,740 838 48.13%

EQ CSA MACQUARIE 3,588 2,115 58.95%

HSBC 2,127 481 22.59%

MERRILL 7,281 4,551 62.50%

MORGAN STANLEY 14,052 6,922 49.26%

NOMURA 191,514 113,767 59.40%

UBSWDR 10,560 6,680 63.26%

WOOD 5,450 1,171 21.48%

FEE-SHARING AGREEMENTS AND REBATES: The management company may share its fee with the distributor, and institutional and/or professional parties. In principle, the percentage share amounts to between 35% and 60% if the distributor is an entity of KBC Group NV or to between 35% and 70% if the distributor is not an entity of KBC Group NV. However, in a small number of cases, the distributor’s fee is less than 35%. Investors may, on request, obtain more information on these cases. If the management company invests the assets of the undertaking for collective investment in units of undertakings for collective investment that are not managed by an entity of KBC Group NV, and receives a fee for doing so, it will pay this fee to the undertaking for collective investment. Fee-sharing does not affect the amount of the management fee paid by the sub-fund to the management company. This management fee is subject to the limitations laid down in the articles of association. The limitations may only be amended after approval by the general meeting of shareholders. The management company has concluded a distribution agreement with the distributor in order to facilitate the wider distribution of the sub-fund's units by using multiple distribution channels. It is in the interests of the holders of units, the sub-fund and of the distributor for the largest possible number of units to be sold and for the assets of the sub-fund to be maximised in this way. In this respect, there is therefore no question of any conflict of interest.

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA Fee for managing the investment portfolio: 1.5% per annum calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets assets invested in investment undertakings managed by a financial institution of the KBC group. KBC Fund Management Limited receives a fee from the management company of max. 1.5% calculated on that part of the portfolio that it manages, without the total management fee received by the management company being exceeded. Kleinwort Benson Investors Dublin Ltd receives a fee of max. 0.5% from KBC Fund Management Limited calculated on that part of the portfolio that it manages, without the total management fee received by KBC Fund Management Limited being exceeded. The administration agent’s fee is payable at the end of each month and is calculated on the basis of the average total net assets of the sub-fund. Auditor's fee: 1 700 EUR per year. This fee is not including VAT and will be increased at the end of the 3-year mandate. The custody fee is calculated on the value of the securities held in custody by the custodian on the final banking day of the preceding calendar year, except on those assets invested in investment undertakings managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. Social, ethical and environmental aspects: No manufacturers of controversial weapons whose use over the past five decades, according to the international consensus, has led to disproportionate human suffering among the civilian population will be included in the portfolio of investments. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In this way, the sub-fund seeks to reflect not only simple financial reality but also the social reality of the sector or region in question. Exercising voting rights If necessary, relevant and in the interest of the shareholders, the management company will exercise the voting rights 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 items on 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.

Name Maximum management fee Horizon-Access India Fund-Classic Shares 1,60 KBC Equity Fund-High Dividend New Markets-Classic Shares 1,50 KBC Equity Fund-High Dividend New Markets-Institutional B Shares 1,50

Securities lending In accordance with the Royal Decree of 7 March 2006 concerning securities lending, the undertaking for collective investment has taken out securities loans with a principal to whom the full title of the loaned securities was transferred, without recording this transfer of ownership in the accounts. For the period from 1 January 2012 to 31 December 2012, the fee for securities lent comes to 120.893,49 EUR. KBC Asset Management NV receives 50% of the net fee received for securities lent. The detailed list of securities lending transactions carried out can be obtained from the registered office of the collective investment undertaking at 2 Havenlaan, 1080 Brussels.

Overview of securities lent as at 31/12/2012

Name Currency Quantity Price Value in currency of the portfolio

GREAT WALL MOTOR CO LTD -H- HKD 334.092 24,450 799.372,66

KANGWON LAND INC KRW 4.000 29250,000 82.893,70

POWSZECHNA KASA OSZC PLN 224.929 36,900 2.034.134,77

POWSZECHNY ZAKLAD UBEZPIECZEN SA PLN 16.085 437,000 1.722.702,99

REDEFINE PROPERTIES LTD ZAR 303.119 9,400 254.726,40

Total 4.893.830,52

Details of collateral received for securities lent

Name Currency Nominal value Currency fund Value in Currency fund

FLEMISH COMMUNITY - 09/14 3.75% 31/03 EUR 4.000.000 EUR 4.280.044,00

BUNDESREPUB.DTL. 2011 2.25% 04/09/21 EUR 229.000 EUR 252.308,54

FRANCE 2003 2,25% 25/07/2020 EUR 46.000 EUR 66.932,44

FRANCE 2004 1,60% 25/07/2015 EUR 695.000 EUR 893.076,39

Total 5.492.361,37 For the valuation of the collateral received, indicative prices have been used in this detail list by the Collateral Management Division of KBC Bank.

Audited annual report as at 31 December 2012

TABLE OF CONTENTS

2. Information on KBC Equity Fund Satellites

2.1. Management report 2.1.1. Launch date and subscription price 2.1.2. Stock exchange listing 2.1.3. Goal and key principles of the investment policy 2.1.4. Financial portfolio management 2.1.5. Distributors 2.1.6. Index and benchmark 2.1.7. Policy pursued during the financial year 2.1.8. Future policy 2.1.9. 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 2.4.2. Changes in the composition of the assets 2.4.3. Amount of commitments in respect of financial derivatives positions 2.4.4. Changes in the number of subscriptions and redemptions and the net asset value 2.4.5. Performance figures 2.4.6. Costs 2.4.7. Notes to the financial statements and other data

2 INFORMATION ON KBC EQUITY FUND SATELLITES

2.1 MANAGEMENT REPORT

2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE Classic Shares : Launch date: 30 January 2009 Initial subscription price: 500 EUR Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 676.29 EUR Currency: EUR

2.1.2 STOCK EXCHANGE LISTING Not applicable.

2.1.3 GOAL AND KEY PRINCIPLES OF THE INVESTMENT POLICY

SUB-FUND’S OBJECT: The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly 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 POLICY:

PERMITTED 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 and regulations and consistent with the sub-fund’s object The sub-fund shall invest no more than 10% of its assets in units of other undertakings for collective investment.

RESTRICTIONS OF THE INVESTMENT POLICY: The 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 solving temporary liquidity problems.

PERMITTED DERIVATIVES TRANSACTIONS: Derivates may be used either for hedging purposes or to achieve investment objectives. Changes will be made to the investments at regular intervals to comply with the sub-fund's investment strategy. In addition, listed and unlisted derivates may be used to achieve the objectives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions will only be concluded with prime financial institutions specialised in such transactions. Such derivatives may also be used to hedge the assets against exchange-rate fluctuations. Subject to the applicable laws and regulations and the articles of association, the sub-fund always seeks to conclude the most effective transactions. Derivatives may be used to partially hedge the open exchange risk in relation to the reference currency (euro). Where appropriate, they may therefore limit the foreign exchange risk expressed in euros, and hence the market risk and performance risk too. Derivatives are liquid and readily negotiable instruments. They do not, therefore, affect the liquidity risk.

Derivatives are also used in accordance with the investment policy and strategy. They do not affect the market, performance and concentration risks or the risks associated with external factors or of any kind.

STRATEGY SELECTED At least 75% of the assets are invested, directly or indirectly, in a selection of shares in global companies. The manager has autonomy in the stock picking, which is theme-based. As a result, the sub-fund's investments may at any time be focused to a greater or lesser extent on one or more very specific themes. Some examples of these themes (this list is not exhaustive) are family companies, holding companies with a greater average undervaluation in relation to their intrinsic value, and global companies that generate a significant percentage of their turnover in emerging countries.

THE EUROPEAN SAVINGS DIRECTIVE AND TAX ON DEBT CLAIM RETURNS OBTAINED THROUGH THE

REDEMPTION OF OWN UNITS OR IN THE EVENT OF FULL OR PARTIAL DISTRIBUTION OF EQUITY

CAPITAL. The following information is of a general character and is not intended to cover all aspects of an investment in a UCITS. In certain cases entirely different rules might even apply. Moreover, both tax law and the interpretation of it can change. Investors who wish to have more information about the tax implications – in both Belgium and abroad – of acquiring, holding and transferring units should seek the advice of their usual financial and tax advisers. This UCITS shall invest a maximum of 15% of its assets directly or indirectly in debt instruments as intended by the European Savings Directive. A. European Savings Directive (Directive 2003/48/EC) The European Savings Directive has been implemented in Belgium through: – The Law of 17 May 2004 transposing into Belgian law Directive 2003/48/EC of 3 June 2003 of the Council of the European Union on taxation of savings income in the form of interest payments and amending Income Tax Code 1992 on withholding tax; – The Royal Decree of 27 September 2009 implementing Article 338bis § 2 of Income Tax Code 1992; – The Royal Decree of 27 September 2009 concerning the entry into effect of Article 338bis § 2, paragraphs one to three, of Income Tax Code 1992; Since this UCITS invests a maximum of 15% of its assets directly or indirectly in debt claims as intended by the European Savings Directive, the income of this UCITS does not fall within the scope of this directive. B. Tax on debt claim returns obtained through the redemption of own units or in the event of full or partial distribution of equity capital (Article 19bis Income Tax Code 1992). The income from this UCITS is not subject to the tax on debt instrument returns as intended by Article 19bis, Income Tax Code 1992.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT There is no delegation of the portfolio.

2.1.5 DISTRIBUTORS KBC Asset Management S.A., 5, Place de la Gare, L-1616 Luxembourg.

2.1.6 INDEX AND BENCHMARK See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR KBC Equity Fund Satellites invests primarily in companies selected on a theme basis. Several themes were chosen that are likely to outperform the broad equity market in the medium to long term. At the beginning of the year, KBC Equity Fund Satellites was invested in holdings with a more than average undervaluation compared to their net asset value; businesses with a sufficiently strong market position to be able to set their own selling prices; conservatively managed family businesses; clean energy; companies at which substantial R&D efforts have created clear shareholder value; and structural growth companies. A reasonable sector and regional spread was pursued for the portfolio. KBC Equity Fund Satellites shareholders obtained a positive return (in euros) of more than 21% in 2012. KBC Equity Fund Satellites outperformed the MSCI World thanks to the good relative performance of, among others, Thrombogenics, Richemont and Anheuser-Busch InBev. The positions in BG, Weir, and Microsoft dragged down the fund’s relative performance. Profits were taken in stocks including Cobham, Experian, Imtech, Intertek, Kerry, Kone, Nutreco and Tractebel Energia. The funds released were invested in stocks including Andritz, Berkshire Hathaway, Brenntag, Diasorin, Elekta, Eutelsat, Henkel, Pernod Ricard, SABMiller, Saipem, SAP and Tullow Oil2.1.8 FUTURE POLICY At the beginning of 2013, KBC Equity Fund Satellites was invested in holdings with a more than average undervaluation compared to their net asset value; businesses with a sufficiently strong market position to be able to set their own selling prices; conservatively managed family businesses; clean energy; companies at which substantial R&D efforts have created clear shareholder value; and structural growth companies. These six themes are highly likely to deliver a better performance than the broad equity market in the medium to long term. Consequently, there is still the real prospect of a good relative performance. KBC Equity Fund Satellites will sell themes if the valuation of the underlying businesses is no longer attractive and will invest in new themes if the opportunity arises.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR Classic Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 6 on a scale of 1 (lowest risk) to 7 (highest risk). The value of a share can decrease or increase and the investor may not get back the amount invested. In accordance with Commission Regulation (EU) No. 583/2010, a synthetic risk and reward indicator has been calculated. This indicator provides a quantitative measure of the sub-fund's potential return and the risk involved, calculated in the currency in which the sub-fund is denominated. It is given as a figure between 1 and 7. The higher the figure, the greater the potential return, but also the more difficult it is to predict this return. Losses are possible too. 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 from the past. Data from the past is not always a reliable indicator of future risk and return.

2.2 BALANCE SHEET

Balance sheet layout 31/12/2012 (in the currency of the sub-fundt)

31/12/2011 (in the currency of the sub-fund )

TOTAL NET ASSETS 50.409.447,18 20.248.457,88

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 86.536,00 102.442,50 C. Shares and similar instruments a) Shares 50.207.355,95 20.191.064,30

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 920,08 3.459,27 b) Tax assets 79.850,31 107.394,06 B. Payables a) Accounts payable (-) -17.502,87 -15.720,42 c) Borrowings (-) -140.048,34

V. Deposits and cash at bank and in hand A. Demand balances at banks 67.767,19 3.399,68

VI. Accruals and deferrals A. Expense to be carried forward -688,25 B. Accrued income 54.317,62 23.043,92 C. Accrued expense (-) -69.797,10 -25.888,84

TOTAL SHAREHOLDERS' EQUITY 50.409.447,18 20.248.457,88

A. Capital 33.877.175,19 10.298.225,13

B. Income equalization 12.287,92 -245.600,45

C. Profit(Loss) carried forward 9.950.232,75 15.810.215,62

D. Result for the period 6.569.751,32 -5.614.382,42

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 31/12/2012 (in the currency of the sub-fund)

31/12/2011 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -15.906,50 116,00 C. Shares and similar instruments a) Shares 6.109.799,86 -5.358.524,13 D. Other securities 40,32 -20,83 F. Derivative financial instruments l) Financial indices Futures and forward contracts 24.940,02 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 352.624,11 -467.440,71

II. Investment income and expenses A. Dividends 891.686,49 809.279,84 B. Interests a) Securities and money market instruments 46.250,55 5.656,54 b) Cash at bank and in hand and deposits 1.085,47 292,53 C. Interest on borrowings (-) -188,26 -8.188,00

III. Other income A. Income received to cover the acquisition and

realizaion of assets, to discourage withdrawals and for delivery charges

102.040,41 5.697,35

B. Other 5.569,26

IV. Operating expenses A. Investment transaction and delivery costs (-) -226.000,41 -131.119,28 B. Financial expenses (-) -511,75 -1.014,05 C. Custodian's fee (-) -15.548,62 -38.530,44 D. Manager's fee (-) a) Financial management Classic Shares -230.337,61 -387.722,92 Institutional B Shares -341.560,74 -13.506,76 b) Administration and accounting management -44.665,13 -29.069,35 F. Formation and organisation expenses (-) -2.866,84 -3.394,31 G. Remuneration, social security charges and

pension -3,27 -7,96

H. Services and sundry goods (-) -7.094,87 -6.840,51 J. Taxes Classic Shares -16.230,52 -13.064,27 Institutional B Shares -3.853,17 6.275,17 K. Other expenses (-) -29.008,20 -13.765,61

Income and expenditure for the period Subtotal II + III + IV 123.193,53 186.547,23

V. Profit (loss) on ordinary activities before tax 6.569.751,32 -5.614.382,42

VII. Result for the period 6.569.751,32 -5.614.382,42

Appropriation Account 31/12/2012 (in the currency of the sub-fundm)

31/12/2011 (in the currency of the sub-fund)

I. Profit to be appropriated 16.532.271,99 9.950.232,75 Profit (loss) brought forward from the previous

financial year 9.950.232,75 15.810.215,62

Profit for the period available for appropriation 6.569.751,32 -5.614.382,42 Income on the creation of shares (income on the

cancellation of shares) 12.287,92 -245.600,45

II. (Appropriations to) Deductions from capital -16.532.271,99

III. Profit (loss) to be carried forward 9.950.232,75

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC EQUITY FUND SATELLITES

Name Quantity on 31/12/2012

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Corporate bonds

Ireland

D-STAR FINANCE PLC SUB 14/05/13 145.000,00 EUR 59,680 86.536,00 0,17 0,17

Total bonds 86.536,00 0,17 0,17

Shares

Exchange-listed shares

Austria

ANDRITZ AG - 12.000,00 EUR 48,540 582.480,00 1,16 1,16

Belgium

ANHEUSER-BUSCH INBEV NV - 9.000,00 EUR 65,740 591.660,00 1,18 1,17

EVS BROADCAST EQUIPMENT (BRU) 30.000,00 EUR 44,400 1.332.000,00 2,65 2,64

KBC ANCORA - 39.635,00 EUR 12,950 513.273,25 1,02 1,02

SIPEF (BRU) 8.000,00 EUR 58,500 468.000,00 0,93 0,93

THROMBOGENICS NV - 42.000,00 EUR 42,050 1.766.100,00 3,51 3,50

Bermuda

HAL TRUST (AMS) 3.121,00 EUR 96,950 302.580,95 0,60 0,60

Denmark

DSV DE SAMMENSLUTTEDE VOGNMAEND - 98.000,00 DKK 145,700 1.913.764,91 3,81 3,80

NOVO NORDISK A/S "B" 16.000,00 DKK 916,500 1.965.420,18 3,91 3,90

France

ARKEMA - 27.000,00 EUR 79,210 2.138.670,00 4,25 4,24

PERNOD-RICARD - 25.000,00 EUR 87,440 2.186.000,00 4,35 4,34

Germany

BRENNTAG AG - 19.000,00 EUR 99,430 1.889.170,00 3,76 3,75

SAP AG - 28.000,00 EUR 60,690 1.699.320,00 3,38 3,37

Hong Kong

HUABAO INTERNATIONAL HOLDINGS - 757.000,00 HKD 3,840 284.466,71 0,57 0,56

Italy

DIASORIN SPA - 38.000,00 EUR 30,280 1.150.640,00 2,29 2,28

SAIPEM (MIL) 66.000,00 EUR 29,300 1.933.800,00 3,85 3,84

Netherlands

ARCADIS N.V. (AMS) 110.000,00 EUR 17,890 1.967.900,00 3,91 3,90

BOSKALIS WESTMINSTER (AMS) 31.784,00 EUR 34,000 1.080.656,00 2,15 2,14

FUGRO NV CVA 44.000,00 EUR 44,520 1.958.880,00 3,90 3,89

Sweden

ELEKTA AB -B- 142.000,00 SEK 101,400 1.678.807,95 3,34 3,33

SWEDISH MATCH AB - 87.000,00 SEK 218,200 2.213.342,97 4,40 4,39