KBC Multi Interest - TeleTrader.com · KBC Multi Interest . Public open-ended investment company under Belgian law (bevek) with a variable number of units/shares opting for Investments

Audited annual report as at 30th April 2016

KBC Multi Interest

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 key investor information or prospectus has been provided.

1

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

2

1. GENERAL INFORMATION ON THE BEVEK

1.1 ORGANIZATION OF THE BEVEK

REGISTERED OFFICE :

2 Havenlaan - B-1080 Brussels, Belgium.

DATE OF INCORPORATION:

20 November 1992

LIFE:

Unlimited.

BOARD OF DIRECTORS OF THE BEVEK:

Klaus Vandewalle, Head Finance, Accounting & Reporting KBC Asset Management NV Wouter Vanden Eunde, Representative KBC Asset Management NV Luc Vanderhaegen, Private Banking & Wealth Management Branch General Manager KBC Bank NV Olivier Morel, Financial Director CBC Banque NV Jean-Louis Claessens, Independent Director Theo Peeters, Independent Director 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: Klaus Vandewalle, Head Finance, Accounting & Reporting KBC Asset Management NV Wouter Vanden Eunde, Representative 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 AND POSITIONS OF THE DIRECTORS OF THE MANAGEMENT COMPANY:

Chairman: L. Gijsens Directors: D. Mampaey, President of the Executive Committee J. Peeters, Independent Director J. Daemen, Non-Executive Director P. Konings, Non-Executive Director J. Verschaeve, Managing Director G. Rammeloo, Managing Director O. Morel, Non-Executive Director K. Mattelaer, Non-Executive Director K. Van Eeckhoutte, Non-Executive Director C. Sterckx, Managing Director D. Cuypers, Managing Director L. Demunter, Managing Director

3

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

THE MANAGEMENT COMPANY HAS BEEN ENTRUSTED:

D. Mampaey, President of the Executive Committee J. Verschaeve, Managing Director G. Rammeloo, Managing Director C. Sterckx, Managing Director D. Cuypers, Managing Director L. Demunter, 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 recognized auditor, 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 relative to undertakings for collective investment complying with the conditions of Directive 2009/65/EC and the undertakings for investment in receivables. In the relationship between the investors, each sub-fund will be viewed as a separate entity. Investors have a right only to the assets of and return from the sub-fund in which they have invested. The liabilities of each individual sub-fund are covered only by the assets of that sub-fund.

FINANCIAL PORTFOLIO 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

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 recognized auditor.

DISTRIBUTOR:

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

PROMOTER:

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

4

LIST OF SUB-FUNDS OF KBC MULTI INTEREST

1. CAD Medium 2. Cash 3 Month Duration 3. Cash 5 Month Duration 4. Cash CAD 5. Cash Euro 6. Cash USD 7. CSOB CZK Medium 8. CSOB Kratkodoby 9. Currencies 10. EURO Medium

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’:

Cash 3 Month Duration


CSOB CZK Medium

CSOB Kratkodoby

Currencies

EURO Medium

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



CSOB CZK Medium

CSOB Kratkodoby

Currencies

EURO Medium

5

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. Compulsory sale of unclaimed bearer units: In application of Section 11 of the Act of 14 December 2005 providing for the abolition of bearer securities and of the Royal Decree of 25 July 2014 implementing Section 11 of the Act of 14 December 2005 providing for the abolition of bearer units and establishing detailed rules for sale by the issuer, for the transfer of the proceeds of those sales and of the unsold securities to the Deposit and Consignment Office and for the restitution of those securities, the bearer units issued by the open-ended investment company before 2008 and the titleholders (or assigns) of which have not made themselves known, were offered for sale by the open-ended investment company in the course of 2015 on the Expert Market (the former Public Auctions Market) of Euronext Brussels. These units were offered in the course of multiple (maximum of 5) auction rounds. The proceeds from the sold units were transferred by the open-ended investment company to the Deposit and Consignment Office. The units that remained unsold after five auction rounds were deposited by the open-ended investment company with the Deposit and Consignment Office, by entry of these units in the open-ended investment company's register of securities in the name of the Deposit and Consignment Office. In a report dated 15 January 2016 to the Board of Management, the open-ended investment company's auditor confirmed that the open-ended investment company had observed the provisions in S. 11 of the Act of 14 December 2005 providing for the abolition of bearer units. The table below successively shows the following information from left to right for each sub-fund:

- Name of the sub-fund - ISIN code - Number of units offered for sale - Number of auction rounds - Number of units that were sold and the proceeds of sale of which were transferred to the

Deposit and Consignment Office - Number of units that were unsold and that were entered in the open-ended investment

company's register of securities in the name of the Deposit and Consignment Office - Date of the final auction

6

Name of sub-fund ISIN

Number of units

offered for sale

Number of

auction rounds

Number of secondary

market sales

Number of unsold units (to Deposit

and Consignment

Office)

Date of latest

secondary market sale

Cash USD BE0154367404 5.0000 5.00 5.0000 13OKT2015

CAD Medium BE0156140676 11.0000 5.00 11.0000 13OKT2015

CAD Medium BE0156141682 3.0000 5.00 3.0000 13OKT2015

EURO Medium BE0171262570 1,711.0000 3.00 1,711.00 0.0000 22SEP2015

EURO Medium BE0171263586 2,173.2834 5.00 2,173.2834 17NOV2015

Cash Euro BE0171265607 4,391.3500 5.00 4,391.3500 17NOV2015

1.2.2 GENERAL MARKET OVERVIEW

General investment climate 1 May 2015 – 30 April 2016 Stock markets fall sharply

The international stock markets ended the period under review almost 10% down. The euro area (-14%) and the emerging markets (-16.6%) were hit particularly badly. With the exception of a slight recovery in October 2015 and again from mid-February this year, the trend was almost always negative. The main causes of the correction were the falling oil price and fears that the global economy was slowing. The oil price slid in January this year to barely 28 dollars per barrel of Brent crude, after OPEC – the Organisation of Petroleum Exporting Countries – decided on 4 December to give its members a free hand in production. This perpetuated the overproduction of around two million barrels per day, while US stocks rose to an all-time high. Consistently weak economic data, such as the fact that commodity exporters Brazil and Russia had slipped into recession and the further slowing of growth in China, together with a US economy that is muddling along, kept investors awake at night. The flattening out of corporate earnings growth in both the US and Europe underlined the importance of economic growth for the stock markets. The fact that the declining oil price was holding inflation down enabled the central banks to announce new measures. Investors were however disappointed by the further monetary relaxation by the European Central Bank (ECB) and the Bank of Japan, which they considered to be insufficient. The Federal Reserve raised its key rate for the first time in nine years on 16 December. As noted above, the euro area and the emerging markets found the going particularly tough. Despite a weakening of the US dollar (-5.7% against the euro during the period under review), the US managed to limit the damage (-5.6%). The Japanese market performed in line with the national markets (-11.8%). Returns varied greatly from one sector to another. The biggest losers were the energy sector (-19.5%), which was badly hit by the sharp fall in oil prices (-31% in USD over the reporting period), and the financial sector (-16.1%). Low interest rates are weighing on the profitability of the sector and questions are being asked once again about the solvency of European banks. Above all the winners included defensive sectors, led by Consumer Staples, which even ended the period under review slightly up (+1.3%). Utilities also held up well (-1.2%). Like the telecoms sector (+3.1%), these sectors were able to tempt investors with stable profits and (in particular) relatively high dividends. Interest rates come down again

The start of the period under review was marked by an increase in investors' risk appetite. Prices of safe government bonds accordingly came down and interest rates picked up, particularly when it became clear that the US Federal Reserve would be increasing interest rates for the first time since 2006. Thus the German 10-year rate rose in June to nearly 1%, whereas the US rate headed towards 2.5%.

7

After a false start in September, when the central bank drew on a sharp market correction in China to postpone its initial hike, the Federal Reserve ultimately increased its key rate on 16 December. Bond yields came down again, however, soon after the first rate increase. A slowing American economy and a lower than expected inflation figure fuelled expectations that the Federal Reserve would be taking any further steps with great caution only and that no marked increase in interest rates was in prospect. In early 2016 risk aversion among investors went into higher gear. The resultant ‘flight to quality’ led to lower interest rates in most countries with a high credit rating, including Germany and the US. In addition the major central banks made it clear that they wanted to persist with their flexible monetary policies. The US Federal Reserve postponed further rate hikes. The Bank of Japan announced new support measures and the European Central Bank provided additional stimulus with an expansion of its quantitative easing programme, a cut to its already negative policy rate and new long-term financing programmes for the banks. Investors took refuge in 'safe havens' such as German and American government bonds. The resultant inflow of capital accordingly led to lower interest rates. The German 10-year rate ended the period under review at the same (low) level at which it had started the period (0.15%). The US 10-year rate also barely changed on balance during the period under review (from 1.8% to 1.9%). Given the negative climate it was hardly surprising that bond yields in emerging markets rose and that their currencies weakened. The economic links this group has with China are much greater and some of these countries are also heavily dependent on oil exports. Outlook.

We expect the economic recovery in the euro area and the US to be sustained. Even after the first rake hike by the Fed, the US economy will still have ample time to benefit from a flexible monetary policy. Janet Yellen, the Chair of the US Federal Reserve, has stressed that rates will be raised very gradually. The low price of oil and robust labour market will continue to underpin domestic consumption. The main drivers of growth in the euro area will be the weak euro, the low oil price and the exceptionally accommodating monetary policy of the European Central Bank. The switch to a slightly stimulatory budgetary policy will also provide an additional boost for the economies in the euro area. The fog surrounding emerging markets will probably clear in 2016. The panic about the feared hard landing of the Chinese economy has subsided. The Chinese authorities lowered their growth targets but have assigned greater importance to structural reforms. The Fed's interest-rate hike could set off an outflow of international capital from the emerging markets in the short term. However, due to their healthy economic fundamentals, such as budget surpluses, Asian emerging markets can easily absorb such a development. In the US everything will be dominated by the presidential elections. Hillary Clinton clearly leads the Democratic field, while in the case of the Republicans the focus is on how well Donald Trump is doing. Despite Trump's popularity in the opinion polls, the Republican field remains divided and a more moderate candidate would stand a better chance against Clinton. We expect commodity prices to bottom out. Equilibrium will return to the oil market owing to stagnating or even contracting supply, whereas the demand for oil will continue to increase strongly. Investments will slowly start being scaled back; hardly any new oil projects are being launched, for instance. The natural decline of production of the current oil wells will increase. We expect the oil price to recover gradually, though there may be some volatility. This will somewhat relieve the pressure on commodity exporters. We expect the general level of inflation to evolve towards the core inflation level as the base effect of the oil price drops out of the numbers. Equities remain the best asset class The equity markets can draw from two sources: valuation and earnings growth. The second of these factors will be crucial in 2016. Valuation alone will be unable to continue propelling the markets. Investors will have to take account of an upside risk for the bond rate in 2016. Although interest rates are low by historical standards, no unduly dramatic increase in interest rates need be feared: the low level of inflation and flexible monetary policy will prevent any sharp rise. Edited to 8 May 2016

8

1.3 AUDITOR’S REPORT

9

1.4 AGGREGATE BALANCE SHEET (IN EUR)

Balance sheet layout 30/04/2016 (in the currency of the bevek)

30/04/2015 (in the currency of the bevek)

TOTAL NET ASSETS 7.894.148.036,28 1.475.538.100,40

II. Securities, money market instruments, UCIs and derivatives

A. Bonds and other debt instruments a) Bonds 996,165,876.54 1.106.710.549,70 B. Money market instruments 5,553,604,338.61 310.668.815,93 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -45.272,63 -25.496,15

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 280.205.232,56 63.040.571,22 B. Payables a) Accounts payable (-) -33.187.165,29 -59.668.521,49 c) Borrowings (-) -10.540.651,30 -137.185,82

V. Deposits and cash at bank and in hand A. Demand balances at banks 938.758.548,07 27.384.172,88 B. Term accounts at banks 170.305.035,26 27.764.175,16

VI. Accruals and deferrals A. Expense to be carried forward 498.179,19 211.037,49 B. Accrued income 107.577,58 93.165,30 C. Accrued expense (-) -1.712.222,61 -503.183,81

TOTAL SHAREHOLDERS' EQUITY 7.894.148.036,28 1.475.538.100,40

A. Capital 7.969.787.091,46 1.441.304.006,89

B. Income equalization -6.767.788,82 836.914,14

D. Result of the book year -68.871.266,35 33.397.179,36

Off-balance-sheet headings

III Notional amounts of futures and forward contracts III.A Purchased futures and forward contracts 227.187.416,07 353.747.782,93 III.B Written futures and forward contracts -14.395.714,12

10

1.5 AGGREGATE PROFIT AND LOSS ACCOUNT (IN EUR)

Income Statement 30/04/2016 (in the currency of the bevek)


I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -35.784.894,63 -5.078.898,37 B. Money market instruments -12.908.149,70 25.869.313,43 F. Derivative financial instruments a) Bonds Futures and forward contracts -3.866.125,00 l) Financial indices Futures and forward contracts 3.868.025,00 G. Receivables, deposits, cash at bank and in hand

and payables 187.202,46 16.383,18

H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -37.752,10 4.448.293,32 b) Other foreign exchange positions and

transactions -47.285.524,22 -9.653.528,88

Det.section I gains and losses on investments Realised gains on investments 56.156.641,22 32.361.940,42 Unrealised gains on investments -165.092.053,92 190.416.073,42 Realised losses on investments -122.480.846,73 -27.109.425,53 Unrealised losses on investments 135.587.141,22 -180.065.125,64

II. Investment income and expenses A. Dividends 897,80 B. Interests a) Securities and money market instruments 48.044.840,26 24.571.524,06 b) Cash at bank and in hand and deposits 215.732,30 185.534,40 C. Interest on borrowings (-) -5.808,91 -1.533,18

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

realizaion of assets, to discourage withdrawals and for delivery charges

1.614.978,91 473.484,26

11

IV. Operating expenses A. Investment transaction and delivery costs (-) -174.174,41 -450.211,15 B. Financial expenses (-) -5.795,45 -3.852,02 C. Custodian's fee (-) -431.967,78 -229.381,68 D. Manager's fee (-) a) Financial management -15.123.300,56 -5.555.389,07 b) Administration and accounting management -3.514.442,03 -586.101,13 E. Administrative expenses (-) -1.469,53 -669,01 F. Formation and organisation expenses (-) -30.093,30 -38.297,58 G. Remuneration, social security charges and

pension -870,28 -875,24

H. Services and sundry goods (-) -41.556,70 -37.499,63 J. Taxes -2.866.410,10 -311.494,74 K. Other expenses (-) -722.708,45 -221.521,62

Income and expenditure for the period Subtotal II + III + IV 26.957.851,71 17.793.716,69

V. Profit (loss) on ordinary activities before tax -68.871.266,35 33.397.179,36

VII. Result of the book year -68.871.266,36 33.397.179,36

12

Appropriation Account 30/04/2016 (in the currency of the bevek)


I. Profit to be appropriated -75.639.055,16 34.234.093,50 Profit for the period available for appropriation -68.871.266,35 33.397.179,36 Income on the creation of shares (income on the

cancellation of shares) -6.767.788,81 836.914,14

II. (Appropriations to) Deductions from capital 75.901.136,67 -33.897.050,24

IV. (Dividends to be paid out) -262.081,49 -337.043,26

13

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:

o 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.

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

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;

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.

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:

1. 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.

2. 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.

3. 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.

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.

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

o 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.

14

o The income arising from securities lending is recognised as other income (Profit and loss account III.B) and is included on an accruals basis in the profit and loss account over the term of the transaction.

o 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%

1.6.2 EXCHANGE RATES

1 EUR =

30/04/2016

30/04/2015

1,5008 AUD 1,42065 AUD 3,95235 BRL 3,36055 BRL 1,43465 CAD 1,35725 CAD

7,429 CNH 6,95925 CNH 7,427 CNY 6,95055 CNY

27,0475 CZK 27,429 CZK 1,00 EUR 1,00 EUR

0,7819 GBP 0,7292 GBP 311,63 HUF 303,205 HUF

15.104,90 IDR 14.525,10 IDR 4,27505 ILS 4,32955 ILS

1.305,01 KRW 1.201,23 KRW 4,4743 MYR 3,99085 MYR

9,22275 NOK 8,4439 NOK 1,638 NZD 1,4718 NZD 4,375 PLN 4,0442 PLN

4,4823 RON 4,4171 RON 40,0071 THB 36,939 THB 3,20045 TRY 2,99765 TRY 1,14535 USD 1,12055 USD 16,2419 ZAR 13,3975 ZAR

15


TABLE OF CONTENTS

2. Information on KBC Multi Interest Cash 5 Month Duration

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

16

17

2 INFORMATION ON KBC MULTI INTEREST CASH 5 MONTH DURATION


2.1.1 LAUNCH DATE AND SUBSCRIPTION PRICE

Classic Shares : Launch date: 25 November 2011 Initial subscription price: 1000 EUR Currency: EUR Institutional B Shares : Launch date: 25 November 2011 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 sub-fund is a money market fund. It's object is to limit the capital risk as much as possible and to offer a return that is in line with the interest rates on money market instruments through investing, directly or indirectly, in money market instruments, deposits and securities. The sub-fund does not provide capital protection or capital guarantee, nor a guaranteed return. It does provide that unitholders can sell their units on a daily basis.

SUB-FUND’S INVESTMENT POLICY:

PERMITTED ASSET CLASSES:

The sub-fund may invest in debt instruments in the form of money market instruments, securities, deposits, units in money market funds or short-term money market funds, financial derivatives and cash. The sub-fund shall invest no more than 10% of its assets in units in other money market funds or short-term money market funds. 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:

Derivatives may be used to achieve the investment objectives as well as to hedge in risks. It is possible to work with either listed or unlisted derivatives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions may only be concluded with prime financial institutions specialised in such transactions. Subject to the applicable laws and regulations and the articles of association, the sub-fund will always seek to conclude the most effective transactions. All costs associated with the transactions will be charged to the sub-fund and all income generated will be paid to the sub-fund. If the transactions result in a risk in respect of the counterparty, this risk can be hedged by using a margin management system that ensures that the sub-fund is the beneficiary of security (collateral) in the form of cash or investment grade bonds. When calculating the value of the bonds, a margin will be applied that varies depending on their residual term to maturity and the currency in which they are denominated. The relationship with the counterparty or counterparties is governed by standard international agreements. Derivatives can also be used to hedge the assets of the sub-fund against open exchange risks in relation to the currency.

18

Where derivatives are used, they must be easily transferable and liquid instruments. Using derivatives does not, therefore, affect liquidity risk. Furthermore, using derivatives does not affect the portfolio's allocation across regions, industry sectors or themes. As a result, they have no effect on concentration risk. Derivatives may not be used to protect capital, either fully or partially. They neither increase nor decrease capital risk. In addition, using derivatives has no effect on credit risk, settlement risk, custody risk, flexibility risk or inflation risk or risk dependent on external factors.

STRATEGY SELECTED

The assets are invested in financial instruments: denominated in euros, whereby instruments in other currencies are permitted provided they are hedged against exchange rate risks; with an interest rate sensitivity of 5 months on average, but not exceeding 6 months; with a weighted average residual term to maturity of no more than 12 months.

CHARACTERISTICS OF THE BONDS AND DEBT INSTRUMENTS

The assets are invested primarily in debt instruments, which may be either money market instruments or securities. Debt instruments issued by either government agencies or companies qualify for consideration. The short-term bonds and other debt instruments have a short-term credit rating of at least A-2 from Standard & Poor's or an equivalent rating from Moody's or Fitch, or, if there is no credit rating available, a credit risk profile that the manager considers to be at least equivalent. The long-term bonds and other debt instruments have a long-term credit rating of at least A- from Standard & Poor's or an equivalent rating from Moody's or Fitch, or, if there is no credit rating available, a credit risk profile that the manager considers to be at least equivalent. The debt instruments in which investments are made have a maximum residual term to maturity of 397 days. If – within a period of 397 days at most – the rate is adjusted to take account of developments on the money market, the residual term to maturity may be extended. However, this term may never be longer than 2 years.

Lending financial instruments: The sub-fund may lend financial instruments within the limits set by law and regulations. This takes place within the framework of a securities lending system managed by either a principal or an agent. If it is managed by a principal, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to whom title to the loaned securities is transferred. If it is managed by an agent, the sub-fund has a relationship with the agent (as manager of the system) and with one or more counterparties to whom title to the loaned securities is transferred. The agent acts as intermediary between the sub-fund and the counterparty or counterparties. This lending does not affect the sub-fund’s risk profile since:

- The choice of principal, agent and every counterparty is subject to strict selection criteria.

- 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 management of the sub-fund’s assets.

- The return of securities similar to the securities that have been lent is guaranteed by the principal or the agent, as applicable. margin management system is used to ensure that the sub-fund is at all times the beneficiary of financial security (collateral) in the form of cash or other or other specific types of securities with a low risk, such as government bonds. The actual value of the collateral in the form of specific types of securities with a low risk must at all times exceed the actual value of the loaned securities by 5%, in case the principal or the counterparty does not return similar securities. When calculating the value of the specific types of securities with a low risk provided as collateral, a margin of 3% is applied, which should prevent a negative change in price resulting in their actual value no longer exceeding the actual value of the securities. The value of the collateral in the form of cash must at all times equal the actual value of the loaned securities.

19

If the sub-fund receives collateral in the form of cash, it can reinvest this cash in - Deposits with credit institutions which can be withdrawn immediately and which

mature within a period not exceeding twelve months, provided that the registered office of the credit institution is situated within a member state of the EEA, or if the registered country is established in a third country, provided that it is subject to prudential supervisory rules which the FSMA considers as being equivalent to the rules under European Law.

- money market funds as described in the ESMA Guidelines CESR/10-049 dated 19 May 2010 on the common definition of European Money Market Funds.

- government bonds that are denominated in the same currency as the cash received and that meet the terms and conditions set out in the Royal Decree of 7 March 2006 on securities lending by certain undertakings for collective investment.

Reinvesting in this way can eliminate the credit risk to which the sub-fund is exposed concerning the collateral in respect of the financial institution where the cash account is held, but there is still a credit risk in respect of the issuer or issuers of the debt instrument or instruments. The management company may delegate implementation of the reinvestment policy to a third party, including the agent managing the securities lending system. By lending securities, the sub-fund can generate additional income, which might consist of a fee paid by the principal or (if the sub-fund uses an agent) the counterparty to the management company as well as income generated through reinvestments. After deducting the direct and indirect charges – set at a flat rate of 35% of the fee received and consisting of the charges for the clearing services provided by KBC Bank NV, the charges paid to the management company for setting up and monitoring the system for lending securities, the charges for margin management, the charges associated with cash and custody accounts and cash and securities transactions, the fee paid for any management of reinvestments and, if the sub-fund uses an agent, the fee paid to the agent – this income is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements.

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.

Social, ethical and environmental aspects: Investments may not be made in financial instruments issued by manufacturers of controversial weapons whose use over the past five decades, according to international consensus, has led to disproportionate human suffering among the civilian population. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. In addition, as of 31 March 2014 no new investments may be made in financial instruments issued by companies that do not have an anti-corruption policy and that have been given a negative score in a thorough screening for corruption in the last two years. A company has no anti-corruption policy if it cannot be demonstrated that it has an acceptable policy concerning the fight against corruption. An acceptable policy should be made public and must at least state that bribery will not be tolerated and that the law will be followed in this respect. The screening will be based on a generally accepted and independent 'Social, ethical and environmental factors' database. In this way, not only is a purely financial reality represented, but also the social reality of the sector or region. Where relevant, please refer to 'Information concerning the Bevek – Tax treatment' in the prospectus to find out more about the application of European and Belgian tax provisions.

2.1.4 FINANCIAL PORTFOLIO MANAGEMENT

The management company has delegated the intellectual management, to KBC Asset Management SA, 5, Place de la Gare , L-1616 Luxembourg, LUXEMBOURG..

20

2.1.5 DISTRIBUTORS


2.1.6 INDEX AND BENCHMARK

See ‘Sub-fund’s investment policy’.

2.1.7 POLICY PERSUED DURING THE FINANCIAL YEAR

The international stock markets ended the period under review almost 10% down. The main causes of the correction were the falling oil price and fears that the global economy was slowing. The oil price slid in January this year to barely 28 dollars per barrel of Brent crude, after OPEC – the Organisation of Petroleum Exporting Countries – decided on 4 December to give its members a free hand in production. This perpetuated the overproduction of some 2 million barrels per day. The fact that the declining oil price was holding inflation down enabled the central banks to announce new measures. Investors were however disappointed by the further monetary relaxation by the European Central Bank (ECB) and the Bank of Japan, which they considered to be insufficient. The Federal Reserve raised its key rate for the first time in nine years on 16 December. After a false start in September, when the central bank drew on a sharp market correction in China to postpone its initial hike, the Federal Reserve ultimately increased its key rate on 16 December to 0.25-0.50%. A slowing American economy and a lower than expected inflation figure fuelled expectations that the Federal Reserve would be taking any further steps with great caution only and that no marked increase in interest rates was in prospect. Despite the slight increase in interest rates the US dollar weakened by 5.7% against the euro. In addition the major central banks made it clear that they wanted to persist with their flexible monetary policies. The US Federal Reserve postponed further rate hikes. The Bank of Japan announced new support measures and the European Central Bank provided additional stimulus in March 2016 with an expansion of its quantitative easing programme (to include the purchase of corporate bonds), a cut to its already negative policy rate and new long-term financing programmes for the banks. Money market rates continued to come down in Europe throughout the period under review. Three-month Euribor rate fell from -0.01% at the end of April 2015 to -0.25% at the end of April 2016. The duration of the portfolio was in the 120–180 day range throughout. Because of the attractive rate spread, more was also invested in floaters (bonds with a variable coupon). For liquidity reasons, at least half the portfolio is always invested in European government paper from the following countries (in order of holding size): France, Belgium, Austria, Germany, the Netherlands, Spain and Finland. The fund also invests in high-quality paper issued by European supranational institutions like the EIB and ESM.

21

2.1.8 FUTURE POLICY

We expect the economic recovery in the euro area and the US to be sustained. Even after the first rake hike by the Fed, the US economy will still have ample time to benefit from a flexible monetary policy. The main drivers of growth in the euro area will be the weak euro, the low oil price and the exceptionally accommodating monetary policy of the European Central Bank. The switch to a slightly stimulatory budgetary policy will also provide an additional boost for the economies in the euro area. The European money-market curve also steepened slightly in the past year. The spread between the one-month and one-year rate has widened from 21 to 33 basis points. Given the expectation that short rates in Europe will remain this low for some time yet, it has been opted to maintain a portfolio duration of around 160 days.

2.1.9 SYNTHETIC RISK AND REWARD INDICATOR

Classic Shares: 1 on a scale of 1 (lowest risk) to 7 (highest risk). Institutional B Shares: 1 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.

22

2.2 BALANCE SHEET

Balance sheet layout 30/04/2016 (in the currency of the sub-fundt)

30/04/2015 (in the currency of the sub-fund )

TOTAL NET ASSETS 2.654.803.338,85 45.259.607,99


A. Bonds and other debt instruments a) Bonds 211.534.620,69 12.556.215,13 B. Money market instruments 2.018.650.272,71 26.801.791,42

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 87.274.417,33 173.977,38 B. Payables a) Accounts payable (-) -5.725.639,35


VI. Accruals and deferrals A. Expense to be carried forward 185.976,33 26.394,65 B. Accrued income 47.720,77 1.905,67 C. Accrued expense (-) -363.993,82 -15.384,47

TOTAL SHAREHOLDERS' EQUITY 2.654.803.338,85 45.259.607,99

A. Capital 2.665.686.704,96 45.882.071,66

B. Income equalization -3.156.546,56 -368.088,15

D. Result of the book year -7.726.819,53 -254.375,52

23

2.3 PROFIT AND LOSS ACCOUNT

Income Statement 30/04/2016 (in the currency of the sub-fund)

30/04/2015 (in the currency of the sub-fund)

I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -9.326.158,56 -42.519,16 B. Money market instruments -5.213.970,55 -52.154,04 G. Receivables, deposits, cash at bank and in hand

and payables 20.692,99 5.062,00

H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 4.369,95 283,67

Det.section I gains and losses on investments Realised gains on investments 11.038,73 75.977,52 Unrealised gains on investments 460.137,20 10.857,83 Realised losses on investments -9.897.410,78 -180.662,90 Unrealised losses on investments -5.088.831,32 4.500,02

II. Investment income and expenses B. Interests a) Securities and money market instruments 12.610.843,30 226.865,07 b) Cash at bank and in hand and deposits 57.741,53 61.978,16 C. Interest on borrowings (-) -613,24

IV. Operating expenses A. Investment transaction and delivery costs (-) -53.106,38 0,11 B. Financial expenses (-) -2.013,89 -218,48 C. Custodian's fee (-) -108.723,78 -43.569,42 D. Manager's fee (-) a) Financial management Institutional B Shares -3.796.470,04 -323.287,57 b) Administration and accounting management -1.265.486,95 -52.256,06 F. Formation and organisation expenses (-) -3.162,62 -1.958,50 G. Remuneration, social security charges and

pension -86,53 -54,13

H. Services and sundry goods (-) -6.127,61 -3.974,80 J. Taxes Institutional B Shares -432.328,64 -20.012,26 K. Other expenses (-) -212.831,77 -7.946,87

Income and expenditure for the period Subtotal II + III + IV 6.788.246,61 -165.047,99

V. Profit (loss) on ordinary activities before tax -7.726.819,53 -254.375,52

VII. Result of the book year -7.726.819,54 -254.375,52

24

Appropriation Account 30/04/2016 (in the currency of the sub-fundm)


I. Profit to be appropriated -10.883.366,09 -622.463,67 Profit for the period available for appropriation -7.726.819,53 -254.375,52 Income on the creation of shares (income on the

cancellation of shares) -3.156.546,56 -368.088,15

II. (Appropriations to) Deductions from capital 10.883.366,09 622.463,67

25

2.4 COMPOSITION OF THE ASSETS AND KEY FIGURES

2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CASH 5 MONTH DURATION

Name Quantity on 30/04/2016

Cur rency

Price in currency

Evaluation (in the currency of the

sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS

SECURITIES PORTFOLIO

Bonds

Government bonds

Belgium

BELGIUM 06/16 3.25 % 28/09 8.000.000,00 EUR 101,523 8.276.703,38 0,37 0,31

BELGIUM 15/16 0.00% 57.000.000,00 EUR 100,225 57.128.250,00 2,56 2,15

BELGIUM 15/16 0.00% 38.000.000,00 EUR 100,268 38.101.840,00 1,71 1,44

BELGIUM 15/16 0.00% 38.000.000,00 EUR 100,314 38.119.320,00 1,71 1,44

BELGIUM 15/16 0.00% 1.000.000,00 EUR 100,184 1.001.840,00 0,05 0,04

BELGIUM 15/16 0.00% 19.000.000,00 EUR 100,097 19.018.430,00 0,85 0,72

BELGIUM 15/16 0.00% 19.000.000,00 EUR 100,136 19.025.840,00 0,85 0,72

BELGIUM 16/17 0.00% 57.000.000,00 EUR 100,378 57.215.460,00 2,57 2,16

BELGIUM 16/17 0.00% 19.000.000,00 EUR 100,410 19.077.900,00 0,86 0,72

BELGIUM 16/17 0.00% 19.000.000,00 EUR 100,455 19.086.450,00 0,86 0,72

BELGIUM 16/17 0.00% 38.000.000,00 EUR 100,343 38.130.340,00 1,71 1,44

EU institutions outside BLEU terr.

EUROPEAN UNION 11/16 +2.75% 18/07 18/07 20.000.000,00 EUR 100,658 20.567.392,34 0,92 0,78

France

FRENCH REPUBLIC 00/16 5% 25/10 126.000.000,00 EUR 102,653 132.630.484,90 5,95 5,00

FRENCH REPUBLIC 06/17 3.75% 25/04 18.000.000,00 EUR 104,138 18.759.662,41 0,84 0,71


FRENCH REPUBLIC 13/16 +0.25% 25/11 25/11 19.000.000,00 EUR 100,425 19.101.515,02 0,86 0,72

FRENCH REPUBLIC 15/16 0.00% 19.000.000,00 EUR 100,188 19.035.720,00 0,85 0,72








LANGUEDOC ROUSSILLON FRA 15/06/2016 1.000.000,00 EUR 100,039 1.000.390,00 0,05 0,04

REGION OF CHAMPAGNE ARDENNES 30/06/2016 1.000.000,00 EUR 100,051 1.000.510,00 0,05 0,04

Germany

FEDERAL REPUBLIC OF GERMANY 06/16 4.00 04/07 22.000.000,00 EUR 100,770 22.900.328,95 1,03 0,86

FEDERAL REPUBLIC OF GERMANY 11/16 1.25% 14/10 14/10

18.000.000,00 EUR 100,808 18.269.620,33 0,82 0,69

FEDERAL REPUBLIC OF GERMANY 14/16 +0.25% 10/06 10/06

5.000.000,00 EUR 100,083 5.015.352,19 0,23 0,19

Netherlands

NETHERLANDS 06/16 4.00% 15/07 35.000.000,00 EUR 100,913 36.440.315,00 1,63 1,37

Spain

SPAIN 15/16 0.00% 5.000.000,00 EUR 100,108 5.005.400,00 0,22 0,19

26

Bonds issued by credit institutions

Australia

BANK OF CHINA LTD SYDNEY 03/08/2016 30.000.000,00 EUR 100,029 30.008.700,00 1,35 1,13

WESTPAC SECURISATION TRUST 3E+40 10/06/2014-12/03/2014 0.686%

5.000.000,00 EUR 100,195 5.011.092,50 0,23 0,19

Belgium

KBC GROUP 03/02/2017 18.000.000,00 EUR 100,025 18.004.500,00 0,81 0,68

KBC GROUP 03/08/2016 27.000.000,00 EUR 100,049 27.013.230,00 1,21 1,02

KBC GROUP 03/10/2016 10.000.000,00 EUR 100,021 10.002.100,00 0,45 0,38

KBC GROUP 04/11/2016 17.000.000,00 EUR 100,020 17.003.400,00 0,76 0,64

KBC GROUP 06/07/2016 6.500.000,00 EUR 100,039 6.502.535,00 0,29 0,25

KBC GROUP 08/06/2016 12.500.000,00 EUR 100,028 12.503.500,00 0,56 0,47

Canada

BANK OF NOVA SCOTIA 3E+33 22/06/2016-22/03/2016 +0.10%

10.000.000,00 EUR 100,310 10.032.166,66 0,45 0,38

C.I.B.C. 3E+25 08/12/2015-09/09/2015 +0.217% 8.000.000,00 EUR 100,062 8.005.395,55 0,36 0,30

NAT. BK CANADA 3E+28 09/12/2015-09/09/2015 +0.247%

2.500.000,00 EUR 100,081 2.502.269,44 0,11 0,09

China

BANK OF CHINA LTD/LUXEMBURG 03/08/2016 20.000.000,00 EUR 100,027 20.005.400,00 0,90 0,75

CHINA DEVELOPMENT BANK CORP/HO 04/05/2016 5.000.000,00 EUR 100,000 5.000.000,00 0,22 0,19

ICBC 04/05/2016 20.000.000,00 EUR 100,001 20.000.200,00 0,90 0,75

Denmark

DANSKE BK AS 3E+35 02/06/2015-02/03/2015 +0.39% 9.000.000,00 EUR 100,178 9.018.267,50 0,40 0,34

DANSKE BK AS 3E+90 02/06/2016-02/03/2016 +0.695%

7.500.000,00 EUR 101,175 7.597.102,08 0,34 0,29

JYSKE BANK A/S 03/02/2017 6.000.000,00 EUR 100,034 6.002.040,00 0,27 0,23

JYSKE BANK A/S 03/08/2016 10.000.000,00 EUR 100,051 10.005.100,00 0,45 0,38

France

BANQUE FEDERATIVE DU CREDIT MUTUEL 3E+27 19/04/2016-19/01/2016 +0.126%

10.000.000,00 EUR 100,036 10.003.681,66 0,45 0,38

BANQUE FEDERATIVE DU CREDIT MUTUEL 3L+15 0.117% 29/2-29/5-29/8-29/11

15.000.000,00 EUR 100,030 15.004.500,00 0,67 0,57

BPCE SA 3E+20 10/06/2015-10/03/2015 +0.238% 2.000.000,00 EUR 100,055 2.001.100,00 0,09 0,08

BPCE SA 3E+37 26/02/2016-26/11/2015 +0.414% 5.000.000,00 EUR 100,025 5.002.822,64 0,22 0,19

Germany

COMMERZBANK AG 03/02/2017 15.000.000,00 EUR 100,018 15.002.700,00 0,67 0,57



DEKABANK 03/02/2017 20.000.000,00 EUR 100,041 20.008.200,00 0,90 0,75

DEKABANK 25/10/2016 5.000.000,00 EUR 100,066 5.003.300,00 0,22 0,19

DEUTSCHE BANK AG 03/08/2016 20.000.000,00 EUR 100,052 20.010.400,00 0,90 0,75


LANDBK HESSEN-THUERINGEN 03/02/2017 20.000.000,00 EUR 100,049 20.009.800,00 0,90 0,75

LANDBK HESSEN-THUERINGEN 3E+45 25/11/2015-25/08/2015 +0.422%

2.000.000,00 EUR 100,313 2.007.204,44 0,09 0,08

LBBW 3E+45 22/12/2015-24/09/2015 +0.41213 14.000.000,00 EUR 100,299 14.045.371,66 0,63 0,53

MUENCHENER HYPOTHEKENBANK EG 03/02/2017 15.000.000,00 EUR 100,034 15.005.100,00 0,67 0,57


NORDDEUTSCHE LANDESBANK 04/11/2016 25.000.000,00 EUR 100,048 25.012.000,00 1,12 0,94

Luxembourg

BELFIUS FINANCING CO 03/02/2017 20.000.000,00 EUR 100,057 20.011.400,00 0,90 0,75


Netherlands

ABN AMRO BANK NV 3E+20 14/04/2015-14/01/2015 1.500.000,00 EUR 100,058 1.500.870,00 0,07 0,06

27

+0.27%

ABN AMRO BANK NV 3E+58 01/08/2015-04/05/2015 +0.807%

13.500.000,00 EUR 100,114 13.515.513,00 0,61 0,51

ABN AMRO BANK NV 3E+70 0.657% 05/01-05/04-05/07-05/10

10.000.000,00 EUR 100,581 10.061.773,33 0,45 0,38

ABN AMRO BANK NV 3ME 16/18 02-05 20.000.000,00 EUR 100,325 20.076.129,44 0,90 0,76

ACHMEA HYPOTHEEKBANK 19/08/2016 3.000.000,00 EUR 100,069 3.002.070,00 0,14 0,11

COOPERATIEVE RABOBANK UA 3E+10 29/10/2015-29/07/2015 +0.081%

2.000.000,00 EUR 100,035 2.000.700,00 0,09 0,08


25.000.000,00 EUR 100,095 25.023.750,00 1,12 0,94


9.000.000,00 EUR 100,073 9.006.580,49 0,40 0,34

ING BANK 3E+22 04/11/2015-04/08/2015 +0.197% 15.000.000,00 EUR 100,039 15.008.037,92 0,67 0,57

ING BANK 3E+50 19/05/2016-19/02/2016 +0.317% 15.000.000,00 EUR 100,350 15.062.274,17 0,68 0,57

ING BANK 3E+655 07/09/2015-05/06/2015 +0.6457 2.000.000,00 EUR 100,509 2.011.579,67 0,09 0,08

ING BANK 3E+71 16/11/2015-14/08/2015 +0.68911 14.500.000,00 EUR 100,641 14.609.627,24 0,66 0,55

South Korea

WOORI BANK 04/05/2016 6.000.000,00 EUR 100,001 6.000.060,00 0,27 0,23

Spain

BANCO SANTANDER CENTRAL HISPANO SA 03/08/2016

25.000.000,00 EUR 100,023 25.005.750,00 1,12 0,94

BBVA SENIOR FINANCE SA 03/02/2017 10.000.000,00 EUR 99,980 9.998.000,00 0,45 0,38

Sweden

SKANDINAVISKA ENSKILDA 3E+40 15/12/2015-15/09/2015 +0.362%

8.000.000,00 EUR 100,090 8.009.105,55 0,36 0,30

Switzerland

CREDIT SUISSE AG/LONDON 3E+33 30/06/2015-30/03/2015 +0.351%

12.500.000,00 EUR 100,065 12.509.163,89 0,56 0,47

CREDIT SUISSE AG/LONDON 3E+46 10/02/2016-11/11/2015 +0.39176

7.500.000,00 EUR 100,212 7.520.931,87 0,34 0,28

U.K.

ABBEY NATIONAL TREASURY SERVIC 3E+55 12/05/2016-12/02/2016 +0.383%

13.000.000,00 EUR 100,377 13.060.212,75 0,59 0,49

BANK OF CHINA LONDON 03/02/2017 10.000.000,00 EUR 100,037 10.003.700,00 0,45 0,38

LANDESBANK BW LONDON 03/02/2017 15.000.000,00 EUR 100,041 15.006.150,00 0,67 0,57

LLOYDS BANK PLC 3E+54 23/11/2015-21/08/2015 +0.51815

2.000.000,00 EUR 100,389 2.009.140,83 0,09 0,08

NATIONWIDE BLDG SOCIETY 3E+65 23/06/2016-23/03/2016 +0.42%

17.000.000,00 EUR 100,550 17.101.631,66 0,77 0,64

NORDDEUTSCHE LANDESBANK LONDON 03/08/2016 15.000.000,00 EUR 100,046 15.006.900,00 0,67 0,57

QATAR NATIONAL BANK LONDON 03/08/2016 25.000.000,00 EUR 100,037 25.009.250,00 1,12 0,94


U.S.A.

JPMORGAN CHASE & CO 3E+25 20/02/2015-20/11/2014 +0.331%

7.500.000,00 EUR 100,054 7.504.863,54 0,34 0,28


1.500.000,00 EUR 100,441 1.507.387,92 0,07 0,06

MORGAN STANLEY E3M +0.42 7/17 2.000.000,00 EUR 100,146 2.003.060,83 0,09 0,08

United Arab Emirates

ABU DHABI COMMERCIAL BANK 03/02/2017 10.000.000,00 EUR 100,037 10.003.700,00 0,45 0,38

EMIRATES BANK INTL 03/08/2016 10.000.000,00 EUR 100,028 10.002.800,00 0,45 0,38

Corporate bonds

Belgium

ANHEUSER-BUSCH INBEV NV CP 29/09/2016 10.000.000,00 EUR 100,094 10.009.400,00 0,45 0,38

AQUAFIN 30/06/2016 4.000.000,00 EUR 100,052 4.002.080,00 0,18 0,15

BEFIMMO 03/05/2016 7.000.000,00 EUR 100,000 7.000.000,00 0,31 0,26

COFINIMMO 03/06/2016 2.000.000,00 EUR 100,018 2.000.360,00 0,09 0,08

COFINIMMO 28/02/2017 3.000.000,00 EUR 99,983 2.999.490,00 0,13 0,11

28

ENI FINANCE INTL SA 03/08/2016 12.500.000,00 EUR 100,029 12.503.625,00 0,56 0,47

LVMH FINANCE BELGIQUE SA 03/05/2016 5.000.000,00 EUR 100,000 5.000.000,00 0,22 0,19

SOCIETE WALLONNE DU CREDIT 30/11/2016 4.000.000,00 EUR 100,010 4.000.400,00 0,18 0,15

VOLKSWAGEN GROUP SVS SA 04/05/2016 7.000.000,00 EUR 100,000 7.000.000,00 0,31 0,26

France

CAISSE CENTRALE DESJARDINS 3E+25 15/12/2015-15/09/2015 +0.214%

1.500.000,00 EUR 100,078 1.501.221,04 0,07 0,06


7.000.000,00 EUR 100,082 7.005.878,83 0,31 0,26

IMERYS 03/08/2016 6.000.000,00 EUR 100,041 6.002.460,00 0,27 0,23

RCI BANQUE SA 03/08/2016 9.000.000,00 EUR 100,032 9.002.880,00 0,40 0,34

SUEZ 03/05/2016 6.000.000,00 EUR 100,000 6.000.000,00 0,27 0,23

SUEZ 04/05/2016 6.000.000,00 EUR 100,001 6.000.060,00 0,27 0,23

Germany

DAIMLER AG 03/11/2016 7.000.000,00 EUR 100,026 7.001.820,00 0,31 0,26

DAIMLER AG 04/05/2016 20.000.000,00 EUR 100,001 20.000.200,00 0,90 0,75

DAIMLER AG 07/10/2016 4.000.000,00 EUR 100,056 4.002.240,00 0,18 0,15

DAIMLER AG 3E+48 09/06/2016-09/03/2016 +0.273% 6.000.000,00 EUR 100,328 6.022.182,50 0,27 0,23

DEUTSCHE APOTHEKER ARZ 31/05/2016 7.000.000,00 EUR 100,030 7.002.100,00 0,31 0,26

DEUTSCHE TELEKOM INT FIN 04/05/2016 12.000.000,00 EUR 100,000 12.000.000,00 0,54 0,45

Ireland

CSC CAPITAL FUNDING LTD 10/05/2016 2.000.000,00 EUR 100,002 2.000.040,00 0,09 0,08

Netherlands

HITACHI INTERNATIONAL BV 14/06/2016 8.000.000,00 EUR 100,013 8.001.040,00 0,36 0,30


IBERDROLA INTL BV 03/05/2016 14.000.000,00 EUR 100,000 14.000.000,00 0,63 0,53

Spain

ENAGAS 04/05/2016 7.500.000,00 EUR 100,001 7.500.075,00 0,34 0,28

ENAGAS 07/06/2016 8.000.000,00 EUR 100,024 8.001.920,00 0,36 0,30

SANTANDER CONSUMER FINANCE SA SANTAN FL 31/07/2017

10.000.000,00 EUR 99,925 9.992.909,99 0,45 0,38

SANTANDER CONSUMER FINANCE SA 04/11/16 12.500.000,00 EUR 99,988 12.498.500,00 0,56 0,47

Sweden

SCA FINANS AB 20/06/2016 10.000.000,00 EUR 100,032 10.003.200,00 0,45 0,38

U.K.

AVIVA PLC 04/11/2016 5.000.000,00 EUR 100,012 5.000.600,00 0,22 0,19

HITACHI CAPITAL UK PLC 04/05/2016 5.000.000,00 EUR 100,001 5.000.050,00 0,22 0,19

SUMITOMO CORP CAP PLC 04/05/2016 13.000.000,00 EUR 100,000 13.000.000,00 0,58 0,49

U.S.A.

HONEYWELL INTERNATIONAL INC. 3E+50 22/05/2016-22/02/2016 +0.313%

3.000.000,00 EUR 100,427 3.014.661,92 0,14 0,11

JOHNSON CONTROLS 30/06/2016 12.500.000,00 EUR 100,009 12.501.125,00 0,56 0,47

TOYOTA MOTOR CREDIT CORP 3E+20 08/12/2015-09/09/2015 +0.167%

750.000,00 EUR 99,991 749.932,50 0,03 0,03

Total bonds 2.230.184.893,40 100,00 84,01

TOTAL SECURITIES PORTFOLIO 2.230.184.893,40 100,00 84,01

CASH AT BANK AND IN HAND

Demand accounts

Belgium

KBC GROUP EURO 258.676.669,19 EUR 1,000 258.676.669,19 9,75

Total demand accounts 258.676.669,19 9,74

29

Term accounts

Belgium

KBC BANK NV KBCBANK 09/06 - 09/06/16 0.02% 60.000.000,00 EUR 100,036 60.021.600,00 2,26

KBC BANK NV 06/05/15-04/05/16 0.15 10.000.000,00 EUR 100,001 10.000.100,00 0,38

KBC BANK NV 11/05/15-11/05/16 0.15% 14.500.000,00 EUR 100,011 14.501.595,00 0,55

Total term accounts 84.523.295,00 3,18

TOTAL CASH AT BANK AND IN HAND 343.199.964,19 12,93

OTHER RECEIVABLES AND PAYABLES

Receivables

Belgium

KBC GROUP EUR RECEIVABLE 87.274.417,33 EUR 1,000 87.274.417,33 3,29

Total receivables 87.274.417,33 3,29

Payables

Belgium

KBC GROUP EUR PAYABLE -5.725.639,35 EUR 1,000 -5.725.639,35 -0,22

Payables -5.725.639,35 -0,22

TOTAL RECEIVABLES AND PAYABLES 81.548.777,98 3,07

OTHER

Accrued interest EUR 47.720,77 0,00

Expenses payable EUR -363.993,82 -0,01

Expenses to be carried forward EUR 185.976,33 0,01

TOTAL OTHER -130.296,72 -0,01

TOTAL NET ASSETS 2.654.803.338,85 100,00

30

Geographic breakdown (as a % of securities portfolio)

31/10/2014 30/04/2015 31/10/2015 30/04/2016

United Arab Emirates 3,41 0,00 0,70 0,90 Australia 7,04 1,53 0,16 1,58 Austria 3,20 0,00 0,07 0,00 Belgium 42,30 8,97 31,67 20,68 Canada 0,00 0,00 0,12 0,92 Switzerland 0,00 0,00 0,79 0,90 China 0,40 5,08 1,06 2,02 Germany 1,88 1,53 10,38 15,52 Denmark 2,00 0,00 0,60 1,47 Spain 0,00 8,13 0,90 3,51 France 27,79 38,38 36,38 31,27 U.K. 2,00 2,54 1,87 6,53 Ireland 0,00 5,08 0,00 0,09 Japan 0,00 0,00 0,21 0,00 South Korea 0,00 0,00 0,00 0,27 Luxembourg 1,60 6,35 0,53 2,70 Netherlands 2,77 7,13 11,76 8,69 Singapore 2,00 0,00 0,00 0,00 Sweden 0,00 2,54 0,70 0,81 U.S.A. 0,20 0,00 0,96 1,23 EU institutions outside BLEU terr. 3,41 12,74 1,14 0,91 Total 100,00 100,00 100,00 100,00

Sector breakdown (as a % of securities portfolio)

31/10/2014 30/04/2015 31/10/2015 30/04/2016

Cyclicals 3,00 2,61 0,90 2,59 Consum(cycl) 2,04 2,87 1,05 2,98 Cons.goods 3,00 0,00 0,99 0,45 Financials 25,79 34,98 11,76 43,64 Technology 0,00 0,00 0,00 0,09 Telecomm. 1,40 0,00 0,38 0,54 Utilities 0,00 0,00 0,50 2,05 Real est. 0,00 0,00 0,07 0,54 Governm. 64,77 59,54 84,08 47,12 Various 0,00 0,00 0,27 0,00 Total 100,00 100,00 100,00 100,00

Currency breakdown (as a % of net assets)

31/10/2014 30/04/2015 31/10/2015 30/04/2016

EUR 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00

31

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CASH 5 MONTH

DURATION (IN THE CURRENCY OF THE SUB-FUND)

1st half of year 2nd half of year Year

Purchases 4.359.134.568,69 3.389.554.723,52 7.748.689.292,21 Sales 1.465.561.093,71 3.979.317.202,35 5.444.878.296,06 Total 1 5.824.695.662,40 7.368.871.925,87 13.193.567.588,27 Subscriptions 5.504.975.267,93 2.563.977.821,56 8.068.953.089,49 Redemptions 2.347.680.625,19 3.100.845.367,33 5.448.525.992,52 Total 2 7.852.655.893,12 5.664.823.188,89 13.517.479.082,01 Monthly average of total assets

1.798.494.765,06 3.333.300.406,67 2.562.840.204,10

Turnover rate -112,76 % 51,12 % -12,64 %



2.802.714.638,14 1.828.143.089,92 -379.389.640,93

Corrected turnover rate

-72,36 % 93,21 % 85,38 %

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%). Reason: cash building bloc for the cppi funds + target duration of 120 days 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

32

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

VALUE

Classic Shares Change in number of shares in circulation: Nil Amounts received and paid by the UCI: Nil Net asset value: Nil

Institutional B Shares

Period Change in number of shares in circulation

Year Subscriptions Redemptions End of period

Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 1.394.378,85 1.270.903,81 135.667,04 135.667,04

2015 - 04* 1.037.013,00 1.127.413,06 45.266,99 45.266,99

2016 - 04* 8.084.980,00 5.466.405,00 2.663.841,99 2.663.841,99

Period Amounts received and paid by the UCI

(in the currency of the class)

Year Subscriptions Redemptions

Capitalization Distribution Capitalization Distribution 2014 - 04* 1.398.335.783,35 1.274.111.180,51

2015 - 04* 1.037.762.437,43 1.128.120.115,90

2016 - 04* 8.072.530.142,94 5.455.259.592,53

Period Net asset value

End of period (in the currency of the class)

Year Of the class Of one share

Capitalization Distribution 2014 - 04* 135.871.661,98 1.001,51

2015 - 04* 45.259.607,99 999,84

2016 - 04* 2.654.803.338,85 996,61 * The financial year does not coincide with the calender year.

33

2.4.5 PERFORMANCE FIGURES

Classic Shares

The cumulative returns are shown where they relate to a period of at least one year. 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 BE6228992408 EUR -0.32% 0.18% -0.26% 0.32% 25/11/2011 -0.08%

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

34

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

Ongoing Charges: *

Classic Shares Capitalization: 0.000% Institutional B Shares Capitalization: 0.227% * The following are not included in the charges shown: entry and exit charges, performance fees, transaction costs paid when buying or selling assets, interest paid, payments made with a view to providing collateral in the context of derivative financial instruments, or commissions relating to Commission Sharing Agreements or similar fees received by the Management Company or any person associated with it.

EXISTENCE OF COMMISSION SHARING AGREEMENTS

Not applicable.

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.

35

2.4.7 NOTES TO THE FINANCIAL STATEMENTS AND OTHER DATA

Fee for managing the investment portfolio: max.0.4% per year calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets invested in underlying undertakings for collective investment managed by a financial institution of the KBC group. KBC Asset Management SA receives a fee from the management company of max. 0.4% per year 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: 1786 EUR per year. This fee is not including VAT and can be indexed on an annual basis in accordance with the decisions of the general meeting. 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 underlying undertakings for collective investment managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. 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.

36


TABLE OF CONTENTS

2. Information on KBC Multi Interest Cash USD


2.2. Balance sheet




37

38

2 INFORMATION ON KBC MULTI INTEREST CASH USD



Launche date: 20 November 1992 Initial subscription price: 3000 USD Currency: USD


Not applicable.



The sub-fund is a short term money market fund. It's object is to limit the capital risk as much as possible and to offer a return that is in line with the interest rates on money market instruments through investing, directly or indirectly, in money market instruments, deposits and securities. The sub-fund does not provide capital protection or capital guarantee, nor a guaranteed return. It does provide that unitholders can sell their units on a daily basis.



The sub-fund may invest in securities, money market instruments, units in short-term money market funds, 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 short-term money market funds. with the sub-fund's object.





39


STRATEGY SELECTED

The assets are invested in financial instruments: denominated in US dollars, whereby instruments in other currencies are permitted provided they are hedged against exchange rate risks. The portfolio has an interest rate sensitivity of up to 60 days and a weighted average residual term to maturity of no more than 120 days.


The assets are invested primarily in debt instruments, which may be either money market instruments or securities. Debt instruments issued by either government agencies or companies qualify for consideration. The credit rating of the short term debt instruments will be at least “A-2” short term credit rating of S&P (Standard & Poor’s, a Division of the McGraw-Hill Companies) or an equivalent rating of Moody’s (Moody’s Investors Service) or Fitch (Fitch Ratings) or when no credit rating score is available, a credit risk profile which is at least equivalent according to the appreciation of the fund manager. When different credit ratings are availbale, the lowest rating will prevail. The credit rating of the long term debt instruments will be at least “A-” long term credit rating of S&P (Standard & Poor’s, a Division of the McGraw-Hill Companies) or an equivalent rating of Moody’s (Moody’s Investors Service) or Fitch (Fitch Ratings) or when no credit rating score is available, a credit risk profile which is at least equivalent according to the appreciation of the fund manager. When different credit ratings are availbale, the lowest rating will prevail. The debt instruments in which investments are made have a maximum term to maturity of 397 days.

Derogation for investments in public issuers: The sub-fund has been granted a derogation to invest up to 100% of its assets in various issues of securities and money market instruments that are issued or guaranteed by a Member State of the European Economic Area, by its local authorities, by a state that is not a Member State of the European Economic Area or by public international institutions in which one or more Member States of the European Economic Area participate. The sub-fund can invest more than 35% of its assets in securities or money market instruments issued by: – the United States of America





40










41

2.1.5 DISTRIBUTORS





The international stock markets ended the period under review almost 10% down. The main causes of the correction were the falling oil price and fears that the global economy was slowing. The oil price slid in January this year to barely 28 dollars per barrel of Brent crude, after OPEC – the Organisation of Petroleum Exporting Countries – decided on 4 December to give its members a free hand in production. This perpetuated the overproduction of some 2 million barrels per day. The fact that the declining oil price was holding inflation down enabled the central banks to announce new measures. Investors were however disappointed by the further monetary relaxation by the European Central Bank (ECB) and the Bank of Japan, which they considered to be insufficient. The Federal Reserve raised its key rate for the first time in nine years on 16 December. After a false start in September, when the central bank drew on a sharp market correction in China to postpone its initial hike, the Federal Reserve ultimately increased its key rate on 16 December to 0.25-0.50%. Bond yields came down again, however, soon after the first rate increase. A slowing American economy and a lower than expected inflation figure fuelled expectations that the Federal Reserve would be taking any further steps with great caution only and that no marked increase in interest rates was in prospect. Despite the slight increase in interest rates the US dollar weakened by 5.7% against the euro. US money market rates rose throughout the reporting period. Three-month Libor rose further from 0.28% at the end of April 2015 to 0.64% at the end of April 2016. The US money-market curve flattened out strongly in the past year. The spread between the one-month and one-year rate has widened from 53 to 79 basis points. The duration of the portfolio moved in the 40–60 day range throughout the period under review. The cautious debtor policy was further relaxed, allowing the inclusion of more A2 short-dated paper than previously. Investment continued to focus on prime companies and financial institutions. Because of the attractive rate spread, more was also invested in floaters (bonds with a variable coupon).

2.1.8 FUTURE POLICY

The economic recovery in the euro area and the US is expected to be sustained. Even after the first rake hike by the Fed, the US economy will still have ample time to benefit from a flexible monetary policy. Janet Yellen, the Chair of the US Federal Reserve, has stressed that rates will be raised very gradually. The low price of oil and robust labour market will continue to underpin domestic consumption. Interest-rate hikes will, as noted above, be made very cautiously. A portfolio duration of around 50 days will therefore be opted for.

42


1 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.

43

2.2 BALANCE SHEET



TOTAL NET ASSETS 15.971.711,36 18.544.985,27


A. Bonds and other debt instruments a) Bonds B. Money market instruments 13.476.069,24 16.181.942,07

IV. Receivables and payables within one year B. Payables a) Accounts payable (-) -500.976,12 -1.136.928,62

V. Deposits and cash at bank and in hand A. Demand balances at banks 295.863,25 348.128,60 B. Term accounts at banks 2.700.630,00 3.150.912,50

VI. Accruals and deferrals A. Expense to be carried forward 717,73 2.698,94 B. Accrued income 2.236,94 2.358,04 C. Accrued expense (-) -2.829,68 -4.126,26

TOTAL SHAREHOLDERS' EQUITY 15.971.711,36 18.544.985,27

A. Capital 15.949.040,88 18.609.484,77

B. Income equalization -4.086,82 -19.165,14

D. Result of the book year 26.757,30 -45.334,36

44




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -9.020,20 -9.366,28 B. Money market instruments -3.948,07 -247,08 G. Receivables, deposits, cash at bank and in hand

and payables -282,50 408,50


transactions -308,62 -1.411,85

Det.section I gains and losses on investments Realised gains on investments 1.877,51 10.340,20 Unrealised gains on investments 1.938,67 -1.178,01 Realised losses on investments -22.032,91 -9.299,62 Unrealised losses on investments 4.657,34 -10.479,28

II. Investment income and expenses B. Interests a) Securities and money market instruments 95.700,32 77.421,55 b) Cash at bank and in hand and deposits 13.269,22 11.641,33 C. Interest on borrowings (-) -33,50 -24,46

IV. Operating expenses A. Investment transaction and delivery costs (-) -0,20 -66,37 B. Financial expenses (-) -9,62 -135,67 C. Custodian's fee (-) -3.016,28 -5.205,78 D. Manager's fee (-) a) Financial management -46.473,89 -96.989,42 b) Administration and accounting management -8.365,22 -12.123,25 E. Administrative expenses (-) -28,49 -18,91 F. Formation and organisation expenses (-) -3.203,07 -1.814,76 G. Remuneration, social security charges and

pension -8,53 -38,45

H. Services and sundry goods (-) -3.593,28 -4.315,38 J. Taxes -3.658,95 -2.489,79 K. Other expenses (-) -261,82 -558,29

Income and expenditure for the period Subtotal II + III + IV 40.316,69 -34.717,65

V. Profit (loss) on ordinary activities before tax 26.757,30 -45.334,36

VII. Result of the book year 26.757,30 -45.334,36

45



I. Profit to be appropriated 22.670,48 -64.499,50 Profit for the period available for appropriation 26.757,30 -45.334,36 Income on the creation of shares (income on the

cancellation of shares) -4.086,82 -19.165,14

II. (Appropriations to) Deductions from capital -16.595,44 72.171,64


46


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CASH USD


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Sweden

GOTHENBURG CITY OF 18/05/2016 500.000,00 USD 99,978 499.890,00 3,71 3,13


Australia

BANK OF CHINA LTD SYDNEY 21/07/2016 500.000,00 USD 99,824 499.120,00 3,70 3,13

MACQUARIE BANK LTD 3U+45 15/06/2016-15/12/2015 +0.67002

500.000,00 USD 100,029 500.882,62 3,72 3,14

Canada

ROYAL BK CANADA 3U+46 09/03/2016-09/12/2015 +0.6923%

450.000,00 USD 100,180 451.563,57 3,35 2,83

China

ICBC 29/06/2016 500.000,00 USD 99,897 499.485,00 3,71 3,13

Czech Republic

CESKA EXPORTNI BANKA AS 08/08/2016 500.000,00 USD 99,804 499.020,00 3,70 3,12

Denmark

JYSKE BANK A/S 21/06/2016 500.000,00 USD 99,899 499.495,00 3,71 3,13

France

BANQUE FEDERATIVE DU CREDIT MUTUEL 3U+85 28/10/2015-28/07/2015 +1.08941

600.000,00 USD 100,229 601.497,70 4,47 3,77

CREDIT AGRICOLE 3U+85 03/10/2015-03/07/2015 +1.0781%

500.000,00 USD 100,211 501.650,55 3,72 3,14

Japan

BANK OF TOKYO-MITSUBISHI UFJ L 3U+61 09/09/2015-09/06/2015 +0.8451%

400.000,00 USD 100,086 401.105,51 2,98 2,51

SUMITOMO MITSUI TRUST BANK LTD 3L+78BP 1.0121 17/03-17/06-17/9

400.000,00 USD 100,094 401.118,57 2,98 2,51

Luxembourg

NORDDEUTSCHE LANDESBANK LUXEMBOURG 25/07/2016

500.000,00 USD 99,818 499.090,00 3,70 3,13

Netherlands

ABN AMRO BANK NV 3U+80 28/01/2016-28/10/2015 +1.02785

600.000,00 USD 100,189 601.253,53 4,46 3,76

South Korea

EXPORT-IMPORT BK KOREA 27/05/2016 500.000,00 USD 99,965 499.825,00 3,71 3,13

KOREA DEVELOPMENT BANK 3L+625 14/17 22/04 200.000,00 USD 100,068 200.213,01 1,49 1,25

Spain

BANCO BILBAO VIZCAYA ARGENTARIA 22/06/2016 500.000,00 USD 99,907 499.535,00 3,71 3,13

Sweden

NORDEA BANK AB 3U+46 13/05/2015-13/02/2015 +0.6966%

325.000,00 USD 100,012 325.788,50 2,42 2,04

47


EMIRATES BANK INTL 18/08/2016 500.000,00 USD 99,751 498.755,00 3,70 3,12

Corporate bonds

France

AGENCE CENTR ORGANISM SEC SOC 25/05/2016 500.000,00 USD 99,964 499.820,00 3,71 3,13

AIR LIQUIDE FINANCE SA 30/06/2016 500.000,00 USD 99,903 499.515,00 3,71 3,13

DANONE SA 05/05/2016 500.000,00 USD 99,997 499.985,00 3,71 3,13

GROUPE AUCHAN SA 05/05/2016 500.000,00 USD 99,996 499.980,00 3,71 3,13

MICHELIN 28/07/2016 500.000,00 USD 99,855 499.275,68 3,71 3,13

Germany

MERCK FIN SERVICES GMBH 20/06/2016 500.000,00 USD 99,906 499.530,00 3,71 3,13

Netherlands

HEINEKEN 06/06/2016 500.000,00 USD 99,948 499.740,00 3,71 3,13

TENNET HOLDING BV 23/05/2016 500.000,00 USD 99,965 499.825,00 3,71 3,13

U.K.

HITACHI CAPITAL UK PLC 14/07/2016 500.000,00 USD 99,842 499.210,00 3,70 3,13

ORANGE PLC 17/05/2016 500.000,00 USD 99,980 499.900,00 3,71 3,13

Total bonds 13.476.069,24 100,00 84,38

TOTAL SECURITIES PORTFOLIO 13.476.069,24 100,00 84,38


Demand accounts

Belgium

KBC GROUP EURO 5.332,62 EUR 1,000 6.107,72 0,04

KBC GROUP USD 289.755,53 USD 1,000 289.755,53 1,81

Total demand accounts 295.863,25 1,85

Term accounts

Belgium

KBC BANK NV 07/06/16 KBCBANK 0.72 200.000,00 USD 100,026 200.052,00 1,25

KBC BANK NV 17/05/16 KBCBANK 0.68 500.000,00 USD 100,011 500.055,00 3,13

KBC BANK NV 22/07/16 KBCBANK 0.75_1 500.000,00 USD 100,035 500.175,00 3,13








Payables

Belgium

KBC GROUP USD PAYABLE -500.976,12 USD 1,000 -500.976,12 -3,14

Payables -500.976,12 -3,14

TOTAL RECEIVABLES AND PAYABLES -500.976,12 -3,14

OTHER

Interest receivable USD 0,00

Accrued interest USD 2.236,94 0,01

Expenses payable USD -2.829,68 -0,02

48

Expenses to be carried forward USD 717,73 0,01

TOTAL OTHER 124,99 0,00

TOTAL NET ASSETS 15.971.711,36 100,00

49


31/10/2014 30/04/2015 31/10/2015 30/04/2016

United Arab Emirates 5,26 0,00 3,66 3,70 Australia 12,36 8,34 3,68 7,42 Austria 0,00 7,73 3,68 0,00 Belgium 10,52 3,09 0,00 0,00 Canada 0,00 0,00 0,48 3,35 China 10,52 6,17 3,67 3,71 Czech Republic 0,00 0,00 0,00 3,70 Germany 5,26 6,18 7,36 3,71 Denmark 5,26 6,18 3,68 3,71 Spain 0,00 0,00 3,68 3,71 France 26,33 12,36 16,21 26,73 U.K. 5,26 12,36 28,68 10,39 Japan 0,00 6,18 2,95 2,97 South Korea 2,63 3,09 0,00 5,20 Luxembourg 5,26 3,09 3,68 3,70 Netherlands 4,23 16,08 8,83 11,88 Sweden 5,26 5,12 9,76 6,12 U.S.A. 1,85 4,03 0,00 0,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Cyclicals 5,26 0,00 7,64 3,91 Consum(cycl) 0,00 0,00 0,00 3,91 Cons.goods 0,00 3,53 11,46 11,74 Financials 84,22 89,41 77,08 68,71 Telecomm. 0,00 0,00 0,00 3,91 Utilities 5,26 3,53 0,00 3,91 Governm. 5,26 3,53 0,00 3,91 Various 0,00 0,00 3,82 0,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

EUR 0,03 0,05 0,05 0,04 USD 99,97 99,95 99,95 99,96 Total 100,00 100,00 100,00 100,00

50

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CASH USD (IN

THE CURRENCY OF THE SUB-FUND)


Purchases 27.446.592,80 34.482.340,61 61.928.933,41 Sales 30.228.674,66 34.836.868,73 65.065.543,39 Total 1 57.675.267,46 69.319.209,34 126.994.476,80 Subscriptions 13.998,55 986.951,80 1.000.950,35 Redemptions 1.966.685,92 1.622.620,08 3.589.306,00 Total 2 1.980.684,47 2.609.571,88 4.590.256,35 Monthly average of total assets

17.382.866,04 16.021.216,07 16.704.753,50

Turnover rate 320,40 % 416,38 % 732,75 %


Purchases 27.446.592,80 34.482.340,61 61.928.933,41 Sales 30.228.674,66 34.836.868,73 65.065.543,39 Total 1 57.675.267,46 69.319.209,34 126.994.476,80 Subscriptions 13.998,55 986.951,80 1.000.950,35 Redemptions 1.966.685,92 1.622.620,08 3.589.306,00 Total 2 1.980.684,47 2.609.571,88 4.590.256,35 Monthly average of total assets

14.154.793,53 13.435.735,80 14.012.466,60


393,47 % 496,51 % 873,54 %

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%). Reason: cash fund with duration max 60 days 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.


Nil

51


VALUE



Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 1.170,42 6,72 3.363,17 531,00 5.131,77 952,19 6.083,96

2015 - 04* 332,30 19,76 2.441,27 235,95 3.022,80 736,00 3.758,80

2016 - 04* 151,40 62,00 605,19 110,00 2.569,00 688,00 3.257,00


(in the currency of the sub-fund)


Capitalization Distribution Capitalization Distribution 2014 - 04* 6.322.056,54 20.606,04 18.176.358,02 1.631.008,66

2015 - 04* 1.794.189,44 60.558,68 13.171.926,21 721.674,81

2016 - 04* 816.753,30 188.895,40 3.263.213,55 334.877,62


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

Year Of the sub-fund Of one share

Capitalization Distribution 2014 - 04* 30.634.216,24 5.400,41 3.067,20

2015 - 04* 18.544.985,27 5.391,25 3.054,77

2016 - 04* 15.971.711,36 5.400,96 3.047,46 * The financial year does not coincide with the calender year.

52


53

Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0137788486 EUR -1.99% 4.74% 5.30% 2.18% 20/11/1992 2.50%

CAP BE0137788486 USD 0.18% 0.27% -0.06% 0.20% -0.01% 1.22% 20/11/1992 2.54%

DIV BE0154367404 EUR -2.07% 4.67% 5.25% 2.15% 20/11/1992 2.48%

DIV BE0154367404 USD 0.10% 0.27% -0.13% 0.20% -0.06% 1.18% 20/11/1992 2.51%


54

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:

[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.


These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 29/07/2016: 6.4459 USD net (8.8300 USD gross).

2.4.6 COSTS

Ongoing charges: * Distribution: 0.478% Capitalization: 0.401%

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


Not applicable.


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.

55

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.



56


TABLE OF CONTENTS

2. Information on KBC Multi Interest Cash CAD


2.2. Balance sheet




57

58

2 INFORMATION ON KBC MULTI INTEREST CASH CAD



Launche date: 20 November 1992 Initial subscription price: 4000 CAD Currency: CAD


Not applicable.











59


STRATEGY SELECTED

The assets are invested in financial instruments: · denominated in Canadian dollars, whereby instruments in other currencies are permitted provided they are hedged against exchange rate risks. The portfolio has an interest rate sensitivity of up to 6 months and a weighted average residual term to maturity of no more than 12 months.


The assets are invested primarily in debt instruments, which may be either money market instruments or securities. Debt instruments issued by either government agencies or companies qualify for consideration. The credit rating of the short term debt instruments will be at least “A-2” short term credit rating of S&P (Standard & Poor’s, a Division of the McGraw-Hill Companies) or an equivalent rating of Moody’s (Moody’s Investors Service) or Fitch (Fitch Ratings) or when no credit rating score is available, a credit risk profile which is at least equivalent according to the appreciation of the fund manager. When different credit ratings are availbale, the lowest rating will prevail. The credit rating of the long term debt instruments will be at least “A-” long term credit rating of S&P (Standard & Poor’s, a Division of the McGraw-Hill Companies) or an equivalent rating of Moody’s (Moody’s Investors Service) or Fitch (Fitch Ratings) or when no credit rating score is available, a credit risk profile which is at least equivalent according to the appreciation of the fund manager. When different credit ratings are availbale, the lowest rating will prevail. The debt instruments in which investments are made have a maximum term to maturity of 397 days. If – within a period of 397 days at most – the rate is adjusted to take account of developments on the money market, the residual term to maturity may be extended. However, this term may never be longer than 2 years. Derogation for investments in public issuers: The sub-fund has been granted a derogation to invest up to 100% of its assets in various issues of securities and money market instruments that are issued or guaranteed by a Member State of the European Economic Area, by its local authorities, by a state that is not a Member State of the European Economic Area or by public international institutions in which one or more Member States of the European Economic Area participate. The sub-fund can invest more than 35% of its assets in securities or money market instruments issued by: – Canada – the United States of America

Lending financial instruments: The sub-fund may lend financial instruments within the limits set by law and regulations. This takes place within the framework of a securities lending system managed by either a principal or an agent. If it is managed by a principal, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to whom title to the loaned securities is transferred. If it is managed by an agent, the sub-fund has a relationship with the agent (as manager of the system) and with one or more counterparties to whom title to the loaned securities is transferred. The agent acts as intermediary between the sub-fund and the counterparty or counterparties.

60

This lending does not affect the sub-fund’s risk profile since: - The choice of principal, agent and every counterparty is subject to strict selection

criteria. - 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 management of the sub-fund’s assets.


If the sub-fund receives collateral in the form of cash, it can reinvest this cash in

- Deposits with credit institutions which can be withdrawn immediately and which mature within a period not exceeding twelve months, provided that the registered office of the credit institution is situated within a member state of the EEA, or if the registered country is established in a third country, provided that it is subject to prudential supervisory rules which the FSMA considers as being equivalent to the rules under European Law.





61




2.1.5 DISTRIBUTORS





This fund invests primarily in short-dated government bonds and time deposits. The fund aims to use an optimum mix to achieve a return similar to that of the JPM CASH CAD 1M. During the period under review the Canadian economy was confronted by falling commodity prices and declining investments in the energy sector. This downward trend was partly offset by a depreciation of the Canadian dollar against the US dollar. In the first quarter of 2016 the Canadian economy performed better with slightly rising inflation, although still short of the 2% target. Since July 2015 the central bank has left the official key rate of 0.50% unchanged. The interest on 3m government paper fell during the first half of the period under review from 0.65% to 0.42%. In the second half the 3m rate rose again to 0.52%. Against the backdrop of slightly falling market rates, the average duration was kept relatively long (130–150 days) during the first half of the period under review, In the second half of the year the duration was reduced slightly to 110–125 days. Investments were restricted to Canadian government paper and deposits with prime financial institutions.

2.1.8 FUTURE POLICY

A revival of the Canadian economy is expected next year. The Canadian government has taken measures in order to support the economy. With inflation below the 2% target, the Canadian central bank will wait for longer before acting (i.e. with a possible rate hike as in the US). Even so interest rates could rise slightly in the wake of the United States. The portfolio duration will be kept at a neutral level (approx. 120 days) in the months to come. The defensive debtor policy will also be maintained in the months ahead.

62



63

2.2 BALANCE SHEET



TOTAL NET ASSETS 3.422.219,48 3.864.362,63


A. Bonds and other debt instruments a) Bonds 1.717.944,97 B. Money market instruments 2.806.981,13 1.385.934,50

V. Deposits and cash at bank and in hand A. Demand balances at banks 39.784,37 21.018,96 B. Term accounts at banks 574.723,95 735.191,50

VI. Accruals and deferrals A. Expense to be carried forward 447,69 480,02 B. Accrued income 1.426,63 5.163,36 C. Accrued expense (-) -1.144,29 -1.370,68


A. Capital 3.428.909,58 3.850.068,80

B. Income equalization -765,50 -1.510,71

D. Result of the book year -5.924,60 15.804,54

64




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds 13.954,47 25.664,51 B. Money market instruments -1.511,10 399,87 G. Receivables, deposits, cash at bank and in hand

and payables 217.332,45 -319,45


transactions -217.923,49 -123,76

Det.section I gains and losses on investments Realised gains on investments 238.090,75 30.207,28 Unrealised gains on investments -6.191,40 -2.112,88 Realised losses on investments -218.624,35 -3.969,69 Unrealised losses on investments -1.422,67 1.496,46

II. Investment income and expenses B. Interests a) Securities and money market instruments 4.305,15 7.828,35 b) Cash at bank and in hand and deposits 6.208,30 10.525,71

IV. Operating expenses B. Financial expenses (-) -0,62 -41,23 C. Custodian's fee (-) -677,48 -758,71 D. Manager's fee (-) a) Financial management -14.649,26 -16.873,95 b) Administration and accounting management -1.830,87 -2.108,81 E. Administrative expenses (-) -20,86 -27,10 F. Formation and organisation expenses (-) -4.275,18 -1.303,50 G. Remuneration, social security charges and

pension -5,68

H. Services and sundry goods (-) -4.542,05 -4.483,54 J. Taxes -2.203,38 -2.270,58 K. Other expenses (-) -90,68 -297,59

Income and expenditure for the period Subtotal II + III + IV -17.776,93 -9.816,63

V. Profit (loss) on ordinary activities before tax -5.924,60 15.804,54

VII. Result of the book year -5.924,60 15.804,54

65



I. Profit to be appropriated -6.690,10 14.293,83 Profit for the period available for appropriation -5.924,60 15.804,54 Income on the creation of shares (income on the

cancellation of shares) -765,50 -1.510,71

II. (Appropriations to) Deductions from capital 10.701,94 -8.729,65


66


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CASH CAD


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Canada

CANADA 15/16 0.00% 250.000,00 CAD 99,820 249.550,00 8,89 7,29

CANADA 15/16 0.00% 250.000,00 CAD 99,865 249.662,50 8,89 7,30

CANADA 15/16 0.00% 300.000,00 CAD 99,992 299.976,00 10,69 8,77

CANADA 15/16 0.00% 240.000,00 CAD 99,678 239.227,20 8,52 6,99

CANADA 15/16 0.00% 300.000,00 CAD 99,727 299.181,00 10,66 8,74

CANADA 15/16 0.00% 350.000,00 CAD 99,633 348.715,50 12,42 10,19

CANADA 15/16 0.00% 300.000,00 CAD 99,953 299.859,00 10,68 8,76

CANADA 15/16 0.00% 270.000,00 CAD 99,776 269.395,20 9,60 7,87

CANADA 15/16 0.00% 240.000,00 CAD 99,913 239.791,20 8,54 7,01

CANADA HOUSING TRUST NO 1 3C+20 1.48% 15/03-15/06-15/09-15/12

310.000,00 CAD 100,379 311.623,53 11,10 9,11

Total bonds 2.806.981,13 100,00 82,02



Demand accounts

Belgium

KBC GROUP CAD 35.536,14 CAD 1,000 35.536,14 1,04


KBC GROUP USD 9,99 USD 1,000 12,51


Term accounts

Belgium

KBC BANK NV 08/07/16 KBCBANK 0.71_1 140.000,00 CAD 99,984 139.977,60 4,09

KBC BANK NV 18/08/16 KBCBANK 0.73 100.000,00 CAD 99,961 99.961,00 2,92

KBC BANK NV 21/10/16 KBCBANK 0.83 125.000,00 CAD 99,919 124.898,75 3,65

KBC BANK NV 25/09/15-23/09/16 0.81% 210.000,00 CAD 99,946 209.886,60 6,13

Total term accounts 574.723,95 16,79

TOTAL CASH AT BANK AND IN HAND 614.508,32 17,96

OTHER

Accrued interest CAD 1.426,63 0,04

Expenses payable CAD -1.144,29 -0,03

Expenses to be carried forward CAD 447,69 0,01

TOTAL OTHER 730,03 0,02

TOTAL NET ASSETS 3.422.219,48 100,00

67


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Canada 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Governm. 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

CAD 99,96 99,95 99,99 99,88 EUR 0,04 0,05 0,01 0,12 Total 100,00 100,00 100,00 100,00

68

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CASH CAD (IN



Purchases 2.534.500,30 2.739.392,90 5.273.893,20 Sales 2.920.369,12 3.040.653,58 5.961.022,70 Total 1 5.454.869,42 5.780.046,48 11.234.915,90 Subscriptions 6.298,91 54.297,50 60.596,41 Redemptions 153.710,43 336.774,85 490.485,28 Total 2 160.009,34 391.072,35 551.081,69 Monthly average of total assets

3.764.593,68 3.550.994,34 3.658.219,50

Turnover rate 140,65 % 151,76 % 292,05 %


Purchases 2.534.500,30 2.739.392,90 5.273.893,20 Sales 2.920.369,12 3.040.653,58 5.961.022,70 Total 1 5.454.869,42 5.780.046,48 11.234.915,90 Subscriptions 6.298,91 54.297,50 60.596,41 Redemptions 153.710,43 336.774,85 490.485,28 Total 2 160.009,34 391.072,35 551.081,69 Monthly average of total assets

3.051.669,43 2.875.100,90 2.972.992,27


173,51 % 187,44 % 359,36 %

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%). Reason: cash fund with duration target of 120 days 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.


Nil

69


VALUE



Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 48,01 0,00 90,73 8,00 415,27 358,00 773,27

2015 - 04* 8,32 21,00 81,58 40,00 342,01 339,00 681,01

2016 - 04* 8,51 0,00 67,11 3,00 283,41 336,00 619,41




Capitalization Distribution Capitalization Distribution 2014 - 04* 340.428,58 0,00 643.979,30 33.584,87

2015 - 04* 59.266,92 88.246,62 581.165,38 167.816,02

2016 - 04* 60.732,35 0,00 478.853,77 12.532,95





2015 - 04* 3.864.362,63 7.138,65 4.197,22


70


71

Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0137792520 EUR -5.53% -2.37% -0.02% 0.94% 20/11/1992 3.27%

CAP BE0137792520 CAD -0.15% 0.90% 0.23% 1.19% 0.36% 1.11% 20/11/1992 2.49%

DIV BE0154368410 EUR -5.58% -2.40% -0.05% 0.93% 20/11/1992 3.05%

DIV BE0154368410 CAD -0.20% 0.90% 0.19% 1.19% 0.33% 1.09% 20/11/1992 2.48%


72

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in CAD and in EUR. the return is calculated as the change in the net asset value between two dates expressed









Ci = [Wi / NAV(Di)] + 1 i = 1 ... N




These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 29/07/2016: 8.7162 CAD net (11.9400 CAD gross). In accordance with the Royal Decree of 10 November 2006 on the accounting and the annual accounts of certain public collective investment undertakings, investors are informed that the General Meeting of the fund will decide to pay a dividend despite the fact that a negative ‘result available for appropriation’ was recorded for the corresponding financial year. Investors are also informed that the dividend to be paid stems directly from the interest, dividends and realised capital gains received from the investments made during the financial year corresponding to the dividend to be paid out.

73

2.4.6 COSTS




Not applicable.




Fee for managing the investment portfolio: max.0.4% per year calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets invested in underlying undertakings for collective investment managed by a financial institution of the KBC group. KBC Asset Management SA receives a fee from the management company of max. 0.4% per year 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: 1786 EUR per year. This fee is not including VAT and can be indexed on an annual basis in accordance with the decisions of the general meeting. 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 underlying undertakings for collective investment managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year.

74

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.

75


TABLE OF CONTENTS

2. Information on KBC Multi Interest CAD Medium


2.2. Balance sheet




76

77

2 INFORMATION ON KBC MULTI INTEREST CAD MEDIUM



Launche date: 22 September 1995 Initial subscription price: 5000 CAD Currency: CAD


Not applicable.



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, money market instruments and deposits. 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 bonds, money market instruments and deposits.



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. with the sub-fund's object.




Derivatives may be used to achieve the investment objectives as well as to hedge in risks. It is possible to work with either listed or unlisted derivatives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions may only be concluded with prime financial institutions specialised in such transactions. Subject to the applicable laws and regulations and the articles of association, the sub-fund will always seek to conclude the most effective transactions. All costs associated with the transactions will be charged to the sub-fund and all income generated will be paid to the sub-fund. If the transactions result in a risk in respect of the counterparty, this risk can be hedged by using a margin management system that ensures that the sub-fund is the beneficiary of security (collateral) in the form of cash or investment grade bonds. When calculating the value of the bonds, a margin will be applied that varies depending on their residual term to maturity and the currency in which they are denominated. The relationship with the counterparty or counterparties is governed by standard international agreements. The UCI may conclude contracts that relate to credit risk in respect of issuers of debt instruments. Credit risk is the risk that the issuer of the debt instrument will default. It relates to parties whose creditworthiness at the time the contract is concluded is equal to that of the issuers whose debt instruments the UCI holds directly. Derivatives can also be used to hedge the assets of the sub-fund against open exchange risks in relation to the currency.

78

Where credit derivatives are used, they are permitted only in order to achieve the investment objectives and within the existing risk profile and may not result in a shift to less creditworthy debtors. Consequently there is no increase in the credit risk. Where derivatives are used, they must be easily transferable and liquid instruments. The use of derivatives does not, therefore, affect the liquidity risk. Furthermore, using derivatives does not affect the portfolio’s allocation across regions, industry sectors or themes. As a result, they have no effect on concentration risk. Derivatives are not used to protect capital, either fully or partially. They neither increase nor decrease capital risk. In addition, using derivatives has no effect on settlement risk, custody risk, exchange rate risk, flexibility risk, inflation risk or risk dependent on external factors.

STRATEGY SELECTED

The assets are invested primarily in financial instruments denominated in Canadian dollars and at least 10% of the assets are invested in bonds denominated in Canadian dollars. In addition, investments denominated in currencies other than the reference currency may be made when it is deemed that this will generate a higher investment result. Such investments are in principle hedged against exchange rate risks.

RISK CONCENTRATION

Short-term bonds in Canadian dollars.


Some of the assets are invested in bonds and debt securities issued by both companies and governments. The investments have an average rating of AA from Standard & Poor’s or the equivalent from Moody’s or Fitch. All maturities are taken into consideration when selecting the bonds and debt instruments. Derogation for investments in public issuers: The sub-fund has been granted a derogation to invest up to 100% of its assets in various issues of securities and money market instruments that are issued or guaranteed by a Member State of the European Economic Area, by its local authorities, by a state that is not a Member State of the European Economic Area or by public international institutions in which one or more Member States of the European Economic Area participate. The sub-fund can invest more than 35% of its assets in securities or money market instruments issued by: – Canada – the United States of America





79










80

2.1.5 DISTRIBUTORS





This sub-fund KBC Multi Interest CAD invests in Canadian government bonds with maturities between one and three year. Over the period under review, the Canadian economy has continued to adjust to global commodity prices, which are still at low levels, albeit improving since the first quarter of 2016. Nonetheless, contraction of business investment in the energy sector has remained a serious drag on economic activity. The downward pressure from declines in consumer energy prices and persistent excess capacity was partially offset by the temporary boost coming from the pass-through of the Canadian dollar’s depreciation to the prices of general consumer goods. As such, the economy performed weaker in 2015, but started improving modestly by the first quarter of 2016. This resulted in slightly higher inflation, albeit still below 2 per cent. Against this background, the central bank lowered its benchmark interest rate once with 25 basis points, from 0.75% to 0.50%. As a result the yield curve declined even further to new historic lows. Nevertheless, the sub-fund posted a virtually flat return in CAD terms and a negative return in EUR terms due to the strong depreciation of the Canadian dollar vis-à-vis the single currency.

2.1.8 FUTURE POLICY

For next year, we expect the economy to continue its recovery. Negative impacts on the outlook remain (slower foreign demand growth, the recently more expensive Canadian dollar, downward revision to business investment), but are likely more than offset by the positive effects of the fiscal measures announced in the federal budget in March. As such, we do expect the central bank to remain its current neutral bias and to await the US tightening cycle before moving interest rates. Nevertheless, the expected start of the US tightening cycle could also result in some upward pressure on Canadian bond yields. This may result in a weaker performance of the Canadian bond market, but should support the Canadian dollar vis-à-vis the euro.



81

2.2 BALANCE SHEET



TOTAL NET ASSETS 133.669.775,34 84.940.565,66


A. Bonds and other debt instruments a) Bonds 121.941.908,80 83.763.795,40 B. Money market instruments 11.370.786,49

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 304.064,38 38.126,32 B. Payables c) Borrowings (-) -7.044,03

V. Deposits and cash at bank and in hand A. Demand balances at banks 128.796,79 1.205.723,54

VI. Accruals and deferrals A. Expense to be carried forward 12.558,65 9.757,25 B. Accrued income 2.002,74 C. Accrued expense (-) -88.339,77 -69.792,82


A. Capital 133.464.348,27 83.713.571,82

B. Income equalization 502.824,38 627.092,62


82




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -1.338.440,85 151.721,18 H. Foreign exchange positions and transactions b) Other foreign exchange positions and

transactions 5.419,93 -1.696,48

Det.section I gains and losses on investments Realised gains on investments 138.581,36 52.785,93 Unrealised gains on investments -278.212,50 299.802,87 Realised losses on investments -223.397,12 -75.050,98 Unrealised losses on investments -969.992,66 -127.513,12

II. Investment income and expenses B. Interests a) Securities and money market instruments 1.626.762,26 807.499,97 b) Cash at bank and in hand and deposits 2.367,19 4.480,00 C. Interest on borrowings (-) -22,79 -10,58

IV. Operating expenses B. Financial expenses (-) -87,81 -224,74 C. Custodian's fee (-) -15.316,71 -5.593,21 D. Manager's fee (-) a) Financial management -406.941,07 -201.670,97 b) Administration and accounting management -50.867,45 -25.208,78 E. Administrative expenses (-) -95,15 -130,77 F. Formation and organisation expenses (-) -4.373,54 -2.894,24 G. Remuneration, social security charges and

pension -40,56 -13,78

H. Services and sundry goods (-) -4.911,11 -4.935,63 J. Taxes -89.991,78 -84.792,40 K. Other expenses (-) -20.857,87 -36.628,35

Income and expenditure for the period Subtotal II + III + IV 1.035.623,61 449.876,52



83



I. Profit to be appropriated 205.427,07 1.226.993,84 Profit for the period available for appropriation -297.397,31 599.901,22 Income on the creation of shares (income on the

cancellation of shares) 502.824,38 627.092,62

II. (Appropriations to) Deductions from capital -190.386,23 -1.200.335,24


84


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CAD MEDIUM


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Canada

CANADA 06/17 4.00% 01/06 01/12 10.800.000,00 CAD 103,602 11.370.786,49 8,53 8,51

CANADA 07/18 +4.25% 01/06 01/12 14.000.000,00 CAD 107,362 15.280.965,18 11,46 11,43

CANADA 12/17 1.50% 01/03 01/09 11.700.000,00 CAD 101,105 11.859.576,78 8,90 8,87

CANADA 12/18 +1.25% 01/03 01/09 11.000.000,00 CAD 101,070 11.141.432,87 8,36 8,34

CANADA 13/18 +1.25% 01/09 01/03 11.500.000,00 CAD 101,359 11.681.096,64 8,76 8,74

CANADA 13/19 +1.75% 01/03 01/03 11.000.000,00 CAD 103,016 11.364.931,02 8,53 8,50

CANADA 14/17 1.25% 01/08 01/02 21.000.000,00 CAD 100,748 21.222.958,60 15,92 15,88

CANADA 14/18 +1.25% 01/02 01/08 22.800.000,00 CAD 100,998 23.099.183,33 17,33 17,28

CANADA 15/17 +0.25% 07/08 01/11 13.000.000,00 CAD 99,371 12.918.343,07 9,69 9,66

CANADA 16/18 +0.25% 05/02 01/05 3.400.000,00 CAD 99,158 3.371.418,57 2,53 2,52

Total bonds 133.310.692,55 100,00 99,73



Demand accounts

Belgium

KBC GROUP CAD 125.901,03 CAD 1,000 125.901,03 0,09






Receivables

Belgium

KBC GROUP CAD RECEIVABLE 304.064,38 CAD 1,000 304.064,38 0,23

Total receivables 304.064,38 0,23

TOTAL RECEIVABLES AND PAYABLES 304.064,38 0,23

OTHER

Interest receivable CAD 2.002,74 0,00

Expenses payable CAD -88.339,77 -0,07

Expenses to be carried forward CAD 12.558,65 0,01

TOTAL OTHER -73.778,38 -0,06

TOTAL NET ASSETS 133.669.775,34 100,00

85


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Canada 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Governm. 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

CAD 100,03 100,01 100,00 100,00 EUR -0,03 -0,01 0,00 0,00 Total 100,00 100,00 100,00 100,00

86

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CAD MEDIUM (IN



Purchases 45.157.905,70 92.705.381,69 137.863.287,39 Sales 45.007.789,92 42.288.258,98 87.296.048,90 Total 1 90.165.695,62 134.993.640,67 225.159.336,29 Subscriptions 910.356,37 60.237.504,74 61.147.861,11 Redemptions 1.894.114,19 10.704.593,31 12.598.707,50 Total 2 2.804.470,56 70.942.098,05 73.746.568,61 Monthly average of total assets

84.585.342,79 119.436.142,96 101.941.318,97

Turnover rate 103,28 % 53,63 % 148,53 %


Purchases 45.157.905,70 92.705.381,69 137.863.287,39 Sales 45.007.789,92 42.288.258,98 87.296.048,90 Total 1 90.165.695,62 134.993.640,67 225.159.336,29 Subscriptions 910.356,37 60.237.504,74 61.147.861,11 Redemptions 1.894.114,19 10.704.593,31 12.598.707,50 Total 2 2.804.470,56 70.942.098,05 73.746.568,61 Monthly average of total assets

84.258.002,82 118.763.521,88 101.534.808,40


103,68 % 53,93 % 149,12 %

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%). Reason: Building Block for CPPI. Fund moved from Collateral Term Deposits to Collateral SPVs and the SPVs were flipped from 16 to 18. 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.


Nil

87


VALUE



Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 677,01 16,23 86,47 4,00 813,89 637,42 1.451,31

2015 - 04* 7.949,38 0,00 161,41 37,00 8.601,86 600,42 9.202,28

2016 - 04* 6.434,62 46,00 1.320,11 31,00 13.716,37 615,42 14.331,79




Capitalization Distribution Capitalization Distribution 2014 - 04* 6.365.410,14 79.661,44 812.039,49 19.693,83

2015 - 04* 75.282.475,57 0,00 1.538.315,40 180.913,42

2016 - 04* 61.582.277,61 225.164,02 12.602.059,14 153.404,50





2015 - 04* 84.940.565,66 9.530,36 4.932,80


88


89

Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0156140676 EUR -5.44% -2.11% 0.49% 1.79% 22/09/1995 4.31%

CAP BE0156140676 CAD -0.05% 0.52% 0.49% 1.15% 0.87% 1.96% 22/09/1995 3.17%

DIV BE0156141682 EUR -5.43% -2.03% 0.52% 1.80% 22/09/1995 4.30%

DIV BE0156141682 CAD -0.04% 0.52% 0.58% 1.15% 0.91% 1.97% 22/09/1995 3.17%


90

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in CAD and in EUR. the return is calculated as the change in the net asset value between two dates expressed









Ci = [Wi / NAV(Di)] + 1 i = 1 ... N




These are the performance figures for capitalisation and distribution shares. Dividend on ex-dividend date 29/07/2016: 17.8412 CAD net (24.4400 CAD gross). In accordance with the Royal Decree of 10 November 2006 on the accounting and the annual accounts of certain public collective investment undertakings, investors are informed that the General Meeting of the fund will decide to pay a dividend despite the fact that a negative ‘result available for appropriation’ was recorded for the corresponding financial year. Investors are also informed that the dividend to be paid stems directly from the interest, dividends and realised capital gains received from the investments made during the financial year corresponding to the dividend to be paid out.

91

2.4.6 COSTS




Not applicable.





92


93


TABLE OF CONTENTS

2. Information on KBC Multi Interest Cash Euro


2.2. Balance sheet




94

95

2 INFORMATION ON KBC MULTI INTEREST CASH EURO



Launche date: 22 September 1995 Initial subscription price: 2500 XEU Currency: EUR


Not applicable.



The sub-fund is a short term money market fund. It's object is to limit the capital risk as much as possible and to offer a return that is in line with the interest rates on money market instruments through investing, directly or indirectly, in money market instruments, deposits and securities. The sub-fund does not provide capital protection or capital guarantee, nor a guaranteed return. It does provide that unitholders can sell their units on a daily basis.



The sub-fund may invest in securities, money market instruments, units in short-term money market funds, 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 short-term money market funds. with the sub-fund's object.





96


STRATEGY SELECTED

The assets are invested in financial instruments: · denominated in euros, whereby instruments in other currencies are permitted provided

they are hedged against exchange rate risks. The portfolio has an interest rate sensitivity of up to 60 days and a weighted average residual term to maturity of no more than 120 days.


The assets are invested primarily in debt instruments, which may be either money market instruments or securities. Debt instruments issued by either government agencies or companies qualify for consideration. The credit rating of the short term debt instruments will be at least “A-2” short term credit rating of S&P (Standard & Poor’s, a Division of the McGraw-Hill Companies) or an equivalent rating of Moody’s (Moody’s Investors Service) or Fitch (Fitch Ratings) or when no credit rating score is available, a credit risk profile which is at least equivalent according to the appreciation of the fund manager. When different credit ratings are availbale, the lowest rating will prevail. The credit rating of the long term debt instruments will be at least “A-” long term credit rating of S&P (Standard & Poor’s, a Division of the McGraw-Hill Companies) or an equivalent rating of Moody’s (Moody’s Investors Service) or Fitch (Fitch Ratings) or when no credit rating score is available, a credit risk profile which is at least equivalent according to the appreciation of the fund manager. When different credit ratings are availbale, the lowest rating will prevail. The debt instruments in which investments are made have a maximum term to maturity of 397 days.

Derogation for investments in public issuers: The sub-fund has been granted a derogation to invest up to 100% of its assets in various issues of securities and money market instruments that are issued or guaranteed by a Member State of the European Economic Area, by its local authorities, by a state that is not a Member State of the European Economic Area or by public international institutions in which one or more Member States of the European Economic Area participate. The sub-fund can invest more than 35% of its assets in securities or money market instruments issued by:

– the Member States of the Economic and Monetary Union.

Lending financial instruments: The sub-fund may lend financial instruments within the limits set by law and regulations. This takes place within the framework of a securities lending system managed by either a principal or an agent. If it is managed by a principal, the sub-fund has a relationship only with the principal of the securities lending system which acts as counterparty and to whom title to the loaned securities is transferred. If it is managed by an agent, the sub-fund has a relationship with the agent (as manager of the system) and with one or more counterparties to whom title to the loaned securities is transferred. The agent acts as intermediary between the sub-fund and the counterparty or counterparties.

97

This lending does not affect the sub-fund’s risk profile since: - The choice of principal, agent and every counterparty is subject to strict selection

criteria. - 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 management of the sub-fund’s assets.








98




2.1.5 DISTRIBUTORS





The international stock markets ended the period under review almost 10% down. The main causes of the correction were the falling oil price and fears that the global economy was slowing. The oil price slid in January this year to barely 28 dollars per barrel of Brent crude, after OPEC – the Organisation of Petroleum Exporting Countries – decided on 4 December to give its members a free hand in production. This perpetuated the overproduction of some 2 million barrels per day. The fact that the declining oil price was holding inflation down enabled the central banks to announce new measures. Investors were however disappointed by the further monetary relaxation by the European Central Bank (ECB) and the Bank of Japan, which they considered to be insufficient. The Federal Reserve raised its key rate for the first time in nine years on 16 December. After a false start in September, when the central bank drew on a sharp market correction in China to postpone its initial hike, the Federal Reserve ultimately increased its key rate on 16 December to 0.25-0.50%. A slowing American economy and a lower than expected inflation figure fuelled expectations that the Federal Reserve would be taking any further steps with great caution only and that no marked increase in interest rates was in prospect. Despite the slight increase in interest rates the US dollar weakened by 5.7% against the euro. In addition the major central banks made it clear that they wanted to persist with their flexible monetary policies. The US Federal Reserve postponed further rate hikes. The Bank of Japan announced new support measures and the European Central Bank provided additional stimulus in March 2016 with an expansion of its quantitative easing programme (to include the purchase of corporate bonds), a cut to its already negative policy rate and new long-term financing programmes for the banks. Money market rates continue to come down in Europe throughout the period under review. Three-month Euribor rate fell from -0.01% at the end of April 2015 to -0.25% at the end of April 2016. The duration of the portfolio moved in the 50–60 day range throughout the period under review. The cautious debtor policy was further relaxed, allowing the inclusion of more A2 short-dated paper than previously. Investment continued to focus on prime companies and financial institutions. Because of the attractive rate spread, more was also invested in floaters (bonds with a variable coupon).

99

2.1.8 FUTURE POLICY




100

2.2 BALANCE SHEET



TOTAL NET ASSETS 1.701.052.561,75 112.254.025,63


A. Bonds and other debt instruments a) Bonds B. Money market instruments 1.305.935.022,78 96.430.031,19

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 110.220.092,51 1.999.973,31 B. Payables a) Accounts payable (-) -9.046.273,71 -24.335,51 c) Borrowings (-) -131.995,89

V. Deposits and cash at bank and in hand A. Demand balances at banks 294.606.145,71 B. Term accounts at banks 14.003.375,00



A. Capital 1.705.398.549,56 112.183.856,80

B. Income equalization 509.690,74 112.255,34


101




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -523.336,73 -20.673,64 B. Money market instruments -406.214,26 2.323,80 G. Receivables, deposits, cash at bank and in hand

and payables -3.375,00 3.855,00


transactions -0,46 85,50

Det.section I gains and losses on investments Realised gains on investments 6.285,39 4.357,73 Unrealised gains on investments 241.479,88 3.456,96 Realised losses on investments -1.065.711,27 -18.977,68 Unrealised losses on investments -114.980,45 -3.246,35

II. Investment income and expenses B. Interests a) Securities and money market instruments 1.073.371,02 256.555,99 b) Cash at bank and in hand and deposits 5.524,74 24.128,62 C. Interest on borrowings (-) -401,19 -120,61

IV. Operating expenses A. Investment transaction and delivery costs (-) 2,16 -310,60 B. Financial expenses (-) -896,96 -384,59 C. Custodian's fee (-) -13.873,32 -11.679,10 D. Manager's fee (-) a) Financial management -2.486.059,71 -202.110,26 b) Administration and accounting management -497.210,29 -40.422,09 F. Formation and organisation expenses (-) -4.056,78 8.926,04 G. Remuneration, social security charges and

pension -77,03 -118,49

H. Services and sundry goods (-) -4.989,83 1.213,73 J. Taxes -1.892.347,03 -59.901,86 K. Other expenses (-) -101.737,88 -3.453,95

Income and expenditure for the period Subtotal II + III + IV -3.922.752,10 -27.677,17



102



I. Profit to be appropriated -4.345.987,81 70.168,83 Profit for the period available for appropriation -4.855.678,55 -42.086,51 Income on the creation of shares (income on the

cancellation of shares) 509.690,74 112.255,34

II. (Appropriations to) Deductions from capital 4.345.987,81 -70.168,83

103


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CASH EURO


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Belgium

BRUXELLOIS REFIN FUND 04/05/2016 19.000.000,00 EUR 100,000 19.000.000,00 1,46 1,12




REGION WALLONNE BELGIUM 17/05/2016 26.500.000,00 EUR 100,000 26.500.000,00 2,03 1,56

REGION WALLONNE BELGIUM 31/05/2016 20.000.000,00 EUR 100,005 20.001.000,00 1,53 1,18

France



REGION OF MIDI-PYRENEES FRANCE 16/06/2016 22.300.000,00 EUR 100,025 22.305.575,00 1,71 1,31


Australia

WESTPAC SECURISATION TRUST 3E+40 10/06/2014-12/03/2014 0.686%

2.925.000,00 EUR 100,195 2.931.489,11 0,22 0,17

Austria

KA FINANZ AG 02/08/2016 18.000.000,00 EUR 100,025 18.004.500,00 1,38 1,06

KA FINANZ AG 03/11/2016 8.000.000,00 EUR 99,966 7.997.280,00 0,61 0,47

KA FINANZ AG 14/11/2016 15.000.000,00 EUR 99,945 14.991.750,00 1,15 0,88

Belgium

DEXIA CREDIT LOCAL SA 03/05/2016 79.000.000,00 EUR 100,000 79.000.000,00 6,05 4,64

KBC GROUP 03/02/2017 6.000.000,00 EUR 100,025 6.001.500,00 0,46 0,35

KBC GROUP 06/07/2016 14.000.000,00 EUR 100,039 14.005.460,00 1,07 0,82

KBC GROUP 08/06/2016 10.000.000,00 EUR 100,028 10.002.800,00 0,77 0,59

China




ICBC 04/05/2016 20.000.000,00 EUR 100,001 20.000.200,00 1,53 1,18

France

CARREFOUR BANQUE SA 11/07/2016 31.500.000,00 EUR 100,023 31.507.245,00 2,41 1,85

Netherlands

ABN AMRO BANK NV 3E+58 01/08/2015-04/05/2015 +0.807%

4.855.000,00 EUR 100,114 4.860.578,93 0,37 0,29


3.000.000,00 EUR 100,035 3.001.050,00 0,23 0,18

ING BANK 3E+22 04/11/2015-04/08/2015 +0.197% 15.000.000,00 EUR 100,039 15.008.037,92 1,15 0,88

ING BANK 3E+45 09/12/2015-09/09/2015 +0.416% 5.000.000,00 EUR 100,127 5.008.137,50 0,38 0,29

104

Spain


20.000.000,00 EUR 100,019 20.003.800,00 1,53 1,18


35.000.000,00 EUR 100,000 35.000.000,00 2,68 2,06

Switzerland


3.000.000,00 EUR 100,043 3.001.336,75 0,23 0,18

CREDIT SUISSE/GUERNSEY 3E+27 23/12/2014-23/09/2014 0.353%

4.000.000,00 EUR 100,055 4.002.345,78 0,31 0,24

U.K.

STANDARD CHARTERED PLC 03/05/2016 28.500.000,00 EUR 100,000 28.500.000,00 2,18 1,68

U.S.A.


15.000.000,00 EUR 100,054 15.009.727,08 1,15 0,88

JPMORGAN CHASE & CO 3E+35 0.557% 03/05/13-03/08/13

7.796.000,00 EUR 100,003 7.799.898,00 0,60 0,46

Corporate bonds

Belgium

ANHEUSER-BUSCH INBEV NV 03/11/2016 2.000.000,00 EUR 99,971 1.999.420,00 0,15 0,12

AQUAFIN 07/12/16 5.500.000,00 EUR 100,089 5.504.895,00 0,42 0,32

AQUAFIN 08/06/2016 4.000.000,00 EUR 100,031 4.001.240,00 0,31 0,24

COFINIMMO 19/07/2016 10.000.000,00 EUR 100,028 10.002.800,00 0,77 0,59

COFINIMMO 30/11/2016 5.000.000,00 EUR 100,027 5.001.350,00 0,38 0,29

EANDIS 06/06/2016 17.750.000,00 EUR 99,999 17.749.822,50 1,36 1,04

EANDIS 27/05/2016 8.000.000,00 EUR 99,999 7.999.920,00 0,61 0,47

HOLCIM FINANCE (BE) S.A. 24/05/2016 48.000.000,00 EUR 100,015 48.007.200,00 3,68 2,82





SOCIETE WALLONNE DU LOGEMENT 09/06/2016 2.500.000,00 EUR 100,013 2.500.325,00 0,19 0,15

SOCIETE WALLONNE DU LOGEMENT 13/01/2017 6.000.000,00 EUR 99,922 5.995.320,00 0,46 0,35


France

IMERYS 03/08/2016 10.000.000,00 EUR 100,041 10.004.100,00 0,77 0,59

IMERYS 20/05/2016 20.000.000,00 EUR 100,006 20.001.200,00 1,53 1,18

SMTC GRENOBLE 31/05/2016 14.000.000,00 EUR 100,018 14.002.520,00 1,07 0,82

SOCIETE DES AUTOROUTES PARIS-R 06/10/2016 23.000.000,00 EUR 100,034 23.007.820,00 1,76 1,35

SODEXO 11/05/2016 15.000.000,00 EUR 100,005 15.000.750,00 1,15 0,88

SODEXO 20/05/2016 9.000.000,00 EUR 100,010 9.000.900,00 0,69 0,53

VEOLIA ENVIRONNEMENT SA 03/06/2016 14.000.000,00 EUR 100,017 14.002.380,00 1,07 0,82

VEOLIA ENVIRONNEMENT SA 10/05/2016 36.000.000,00 EUR 100,003 36.001.080,00 2,76 2,12

Germany

DAIMLER AG 03/11/2016 17.000.000,00 EUR 100,026 17.004.420,00 1,30 1,00

DAIMLER AG 07/10/2016 10.000.000,00 EUR 100,056 10.005.600,00 0,77 0,59


MERCK FIN SERVICES GMBH 28/06/2016 15.000.000,00 EUR 100,021 15.003.150,00 1,15 0,88

Ireland




Japan

MITSUBISHI CORP 03/06/2016 25.000.000,00 EUR 100,011 25.002.750,00 1,92 1,47

105

Luxembourg

MOHAWK CAPITAL LUX SA 02/08/2016 20.000.000,00 EUR 100,021 20.004.200,00 1,53 1,18




Netherlands



TELEFONICA EUROPE BV 01/06/2016 15.000.000,00 EUR 100,012 15.001.800,00 1,15 0,88

VOLKSWAGEN INTL.FIN. NV 02/02/2017 12.000.000,00 EUR 99,629 11.955.480,00 0,92 0,70

VOLKSWAGEN INTL.FIN. NV 02/08/2016 24.000.000,00 EUR 99,950 23.988.000,00 1,84 1,41

Spain

GAS NATURAL FENOSA FINANCE BV 03/05/2016 47.000.000,00 EUR 100,000 47.000.000,00 3,60 2,76

INTERNATIONAL ENDESA 25/05/2016 6.500.000,00 EUR 100,011 6.500.715,00 0,50 0,38


Sweden

SCA FINANS AB 23/05/2016 14.000.000,00 EUR 100,007 14.000.980,00 1,07 0,82

VOLVO TREASURY AB 09/06/2016 5.000.000,00 EUR 100,013 5.000.650,00 0,38 0,29

U.K.

IMPERIAL BRANDS FINANCE 03/05/2016 7.000.000,00 EUR 100,000 7.000.000,00 0,54 0,41

IMPERIAL BRANDS FINANCE 25/05/2016 6.000.000,00 EUR 100,014 6.000.840,00 0,46 0,35




VODAFONE GROUP PLC 09/01/2017 9.000.000,00 EUR 99,960 8.996.400,00 0,69 0,53

U.S.A.

DH EUROPE FINANCE SA 18/07/2016 17.000.000,00 EUR 100,030 17.005.100,00 1,30 1,00

DH EUROPE FINANCE SA 30/06/2016 19.000.000,00 EUR 100,024 19.004.560,00 1,46 1,12

HONEYWELL INTERNATIONAL INC. 02/08/2016 20.000.000,00 EUR 100,041 20.008.200,00 1,53 1,18

WHIRLPOOL EUROPE BV 04/05/2016 10.000.000,00 EUR 100,000 10.000.000,00 0,77 0,59

Total bonds 1.305.935.022,78 100,00 76,77



Demand accounts

Belgium





Receivables

Belgium



106

Payables

Belgium


Payables -9.046.273,71 -0,53


OTHER



TOTAL OTHER -662.425,54 -0,04

TOTAL NET ASSETS 1.701.052.561,75 100,00

107


31/10/2014 30/04/2015 31/10/2015 30/04/2016

United Arab Emirates 5,56 0,00 2,53 0,00 Australia 12,02 0,00 2,13 0,22 Austria 3,70 0,00 1,22 3,14 Belgium 32,41 27,46 16,03 27,30 Switzerland 0,00 2,39 0,91 0,54 China 0,00 8,29 5,88 5,74 Germany 6,48 7,06 11,72 4,75 Denmark 0,00 0,00 0,61 0,00 Spain 0,00 1,66 6,54 10,22 France 11,30 16,10 24,43 15,84 U.K. 3,70 7,26 11,66 7,24 Ireland 0,00 0,00 0,71 3,45 Japan 0,00 4,15 0,00 1,91 Luxembourg 4,63 5,19 1,37 2,83 Netherlands 16,68 11,62 6,73 8,56 Sweden 0,00 1,56 2,03 1,46 U.S.A. 3,52 7,26 5,50 6,80 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016



31/10/2014 30/04/2015 31/10/2015 30/04/2016

EUR 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00

108

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CASH EURO (IN



Purchases 1.630.488.491,78 4.289.572.112,78 5.920.060.604,56 Sales 727.390.445,87 3.965.182.527,40 4.692.572.973,26 Total 1 2.357.878.937,65 8.254.754.640,18 10.612.633.577,83 Subscriptions 1.300.746.069,25 1.426.486.459,89 2.727.232.529,14 Redemptions 200.893.421,42 933.194.583,79 1.134.088.005,21 Total 2 1.501.639.490,67 2.359.681.043,68 3.861.320.534,35 Monthly average of total assets

422.946.218,72 1.586.340.202,50 1.002.325.692,71

Turnover rate 202,45 % 371,61 % 673,56 %


Purchases 1.630.488.491,78 4.289.572.112,78 5.920.060.604,56 Sales 727.390.445,87 3.965.182.527,40 4.692.572.973,26 Total 1 2.357.878.937,65 8.254.754.640,18 10.612.633.577,83 Subscriptions 1.300.746.069,25 1.426.486.459,89 2.727.232.529,14 Redemptions 200.893.421,42 933.194.583,79 1.134.088.005,21 Total 2 1.501.639.490,67 2.359.681.043,68 3.861.320.534,35 Monthly average of total assets

259.950.163,94 1.114.269.004,52 679.268.046,75


329,39 % 529,05 % 993,91 %

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%). Reason: used as cash building bloc by the cppi funds + duration max 60 days 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.


Nil

109


VALUE



Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 1.979.446,52 344.382,26 1.141.944,24 472.842,26 2.325.818,59 107.822,70 2.433.641,29

2015 - 04* 2.720.145,64 411.416,89 2.174.204,11 447.740,89 2.871.760,11 71.498,70 2.943.258,81

2016 - 04* 71.014.297,75 7.510,79 29.539.379,66 22.716,65 44.346.678,20 56.292,85 44.402.971,05




Capitalization Distribution Capitalization Distribution 2014 - 04* 76.286.576,95 8.000.000,00 44.028.967,09 10.983.988,83

2015 - 04* 104.824.757,02 9.548.772,66 83.812.515,70 10.384.445,48

2016 - 04* 2.728.132.369,29 173.874,75 1.134.126.811,54 525.217,83




Capitalization Distribution 2014 - 04* 92.119.543,64 38,53 23,21

2015 - 04* 112.254.025,63 38,51 23,17

2016 - 04* 1.701.052.561,75 38,33 23,09 * The financial year does not coincide with the calender year.

110


Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0171265607 EUR -0.47% -0.15% -0.24% 0.01% 0.02% 1.23% 22/09/1995 1.98%

DIV BE0171264592 EUR -0.35% -0.15% -0.29% 0.01% -0.02% 1.20% 22/09/1995 1.95%


111

The bar chart shows the performance for full financial years. The figures do not take account of any restructuring. Calculated in EUR (ex XEU). the return is calculated as the change in the net asset value between two dates expressed









Ci = [Wi / NAV(Di)] + 1 i = 1 ... N




These are the performance figures for capitalisation and distribution shares.

2.4.6 COSTS




Not applicable.



112




113


TABLE OF CONTENTS

2. Information on KBC Multi Interest CSOB Kratkodoby


2.2. Balance sheet




114

115

2 INFORMATION ON KBC MULTI INTEREST CSOB KRATKODOBY



Classic Shares : Launch date: 31 March 2000 Initial subscription price: 100 CZK Currency: CZK Institutional B Shares : Launch date: 30 September 2015 Initial subscription price: 1000 CZK Currency: CZK


Not applicable.










116


Strategy selected

The assets are invested in fixed-income bonds and debt instruments denominated in Czech koruna and other currencies. Investments are made in assets denominated in other currencies where there is a lack of suitable instruments in Czech koruna, i.e. when including investments denominated in Czech koruna could hinder proper execution of the sub-fund's investment strategy. Investments denominated in other currencies are in principle subject to a currency risk hedge. The assets are invested primarily in financial instruments with a duration of no more than two years.

Characteristics of the bonds and debt instruments

The assets are invested mainly in bonds and debt instruments issued by companies and governments. Most of the bonds and debt instruments must have an investment grade rating (BBB- or higher) from Standard & Poor's or an equivalent rating from Moody's or Fitch. If no issue rating is available, an issuer or guarantor rating can be used. All maturities are taken into consideration when selecting the bonds and debt instruments.

Risk concentration

Czech koruna









117





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




118


MACROECONOMIC AND FIXED-INCOME DEVELOPMENT

The Czech economy growth was pretty strong in 2015. The GDP increased by 4.00% on the year to year base with the manufacturing industry to be the main contributor. The economy has grown at tremendous speed and it was considered as one of the highest in Europe. The consumer price inflation was far below the target of the Czech National Bank (the “CNB”) throughout 2015 and first quarter of 2016 mainly because of declining commodity prices. CNB continued to intervene against the Czech koruna to defend the intervention level at 27 CZK/EUR. The official CNB rate remained unchanged at 0.05% during previous twelve months and it is actually slightly higher than the official rate of ECB. The yields on the short end of the local yield curve continued decreasing during the last twelve months as the 12 month inter-bank rate fell from 0.51% to 0.46%. The Czech yield curve has flattened as the long-term yields plunged by approximately 35 bps.

INVESTMENT STRATEGY AND ASSET ALLOCATION

The Fund has invested mainly in Czech government bonds, short and mid-term eurobonds and term deposits. These instruments offer good accessibility, liquidity and corresponding returns. Investments denominated in foreign currencies are fully hedged. During the last twelve months, the Fund´s modified duration was kept between 0.5 – 0.8 year. The fund’s neutral modified duration is 0.5 year.

2.1.8 FUTURE POLICY

The CNB is anticipated to keep its official interest rate at the present level of 0.05% for the rest of 2016. We expect the CNB will hold weak Czech koruna at least until the end of 2016 and possibly to mid of 2017. The inflation should slowly pick up due to stronger GDP, external factors and diminishing base effect of oil. For the long term yields, we expect the increase as their level should normalize. However for the short end of the yield curve, the yields should remain at the low levels as we expect the loose monetary policy will persist. We intend to keep the modified duration slightly above or at the benchmark-neutral level during coming months.



119

2.2 BALANCE SHEET



TOTAL NET ASSETS 3.522.154.371,42 3.270.125.795,89


A. Bonds and other debt instruments a) Bonds 2.874.882.404,84 2.764.381.028,08 B. Money market instruments 170.681.352,79 288.217.004,08 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) 261.848,87 2.443.532,21

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 999,13 1.128.025.413,85 B. Payables a) Accounts payable (-) -30.033,12 -1.126.451.852,27

V. Deposits and cash at bank and in hand A. Demand balances at banks 477.190.089,25 214.687.349,31

VI. Accruals and deferrals A. Expense to be carried forward 446.685,95 368.058,80 B. Accrued income 63.994,39 122.065,09 C. Accrued expense (-) -1.342.970,63 -1.666.803,26


A. Capital 3.559.374.951,18 3.284.015.558,99

B. Income equalization -12.402.469,83 3.724.251,35

D. Result of the book year -24.818.109,93 -17.614.014,45


III Notional amounts of futures and forward contracts

III.A Purchased futures and forward contracts 2.172.687.390,00 1.954.003.435,98

120




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -30.906.746,09 -15.873.033,78 B. Money market instruments 3.536.358,26 -39.614,14 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -2.181.683,33 28.998.767,18 b) Other foreign exchange positions and

transactions -10.090.817,97 -31.152.950,05

Det.section I gains and losses on investments Realised gains on investments 72.868.607,84 94.533.576,75 Unrealised gains on investments 198.775.122,22 901.908.241,10 Realised losses on investments -114.015.364,32 -95.213.290,71 Unrealised losses on investments -197.271.254,87 -919.295.357,93

II. Investment income and expenses B. Interests a) Securities and money market instruments 36.759.538,95 22.882.196,08 b) Cash at bank and in hand and deposits 579,61 1.132,77 C. Interest on borrowings (-) -55.339,69 -102,95



217.085,16

121

IV. Operating expenses A. Investment transaction and delivery costs (-) -15.560,60 -51.768,00 B. Financial expenses (-) -2.512,33 -12.556,52 C. Custodian's fee (-) -565.801,08 -495.454,89 D. Manager's fee (-) a) Financial management Classic Shares -10.451.040,26 -17.524.764,73 Institutional B Shares -8.815.586,11 b) Administration and accounting management -1.781.961,42 -1.393.261,00 E. Administrative expenses (-) -278,09 -442,66 F. Formation and organisation expenses (-) -36.093,04 -484.404,51 G. Remuneration, social security charges and

pension -1.700,71 -3.538,55

H. Services and sundry goods (-) -89.579,69 -128.815,52 J. Taxes Classic Shares 127.983,48 -1.622.867,84 Institutional B Shares 3.094,94 K. Other expenses (-) -468.049,92 -712.535,34

Income and expenditure for the period Subtotal II + III + IV 14.824.779,21 452.816,34

V. Profit (loss) on ordinary activities before tax -24.818.109,93 -17.614.014,45

VII. Result of the book year -24.818.109,93 -17.614.014,45

122



I. Profit to be appropriated -37.220.579,76 -13.889.763,10 Profit for the period available for appropriation -24.818.109,93 -17.614.014,45 Income on the creation of shares (income on the

cancellation of shares) -12.402.469,83 3.724.251,35

II. (Appropriations to) Deductions from capital 37.315.089,76 13.977.548,65


123


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CSOB KRATKODOBY


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Czech Republic

CZECHIA 6P+00 09/06/2015-09/12/2014 +0.12% 400.000.000,00 CZK 100,492 402.082.333,20 13,21 11,42

CZECHIA 6P+85 23/01/2016-23/07/2015 +2.34% 250.000.000,00 CZK 101,726 256.574.583,25 8,42 7,29


Australia

HYPO NOOE GRUPPE BANK AG 13/18 +1.625% 23/04 23/04

2.000.000,00 EUR 100,318 54.293.517,53 1,78 1,54

Austria

AUST&NZ BANKING GROUP 3E+40 28/01/2015-28/10/2014 +0.485%

3.000.000,00 EUR 100,111 81.234.571,26 2,67 2,31

ERSTE GROUP BANK AG 3P+32 02/03/2015-02/12/2014 +0.66%

55.000.000,00 CZK 101,310 55.778.250,00 1,83 1,58

RAIFFEISEN BANK INTL 12/17 2.75% 10/07 1.700.000,00 EUR 102,833 48.316.285,52 1,59 1,37

China

BANK OF CHINA LTD/HONG KONG 3E+43 30/07/2015-30/04/2015 +0.428%

2.200.000,00 EUR 99,410 59.154.903,82 1,94 1,68

CHINA DEVELOPMENT BANK CORP/HO 3E+65 06/05/2015-06/02/2015 +0.704%

2.000.000,00 EUR 100,590 54.473.901,91 1,79 1,55

Denmark

NYKREDIT A/S 3E+55 10/12/2014-10/09/2014 0.644% 1.500.000,00 EUR 100,169 40.660.208,93 1,34 1,15

France

BANQUE FEDERATIVE DU CREDIT MUTUEL 3E+72 20/06/2014-20/03/2014 1.029%

2.800.000,00 EUR 101,058 76.579.242,02 2,51 2,17

BNP PARIBAS SA 3E+55 20/05/2015-20/02/2015 +0.868%

1.000.000,00 EUR 100,736 27.265.773,85 0,90 0,77

BNP PARIBAS SA 3P+106 10/05/2016-10/02/2016 +1.35%

50.000.000,00 CZK 107,010 53.662.499,95 1,76 1,52

CARREFOUR BANQUE SA 3E+88 19/01/2016-19/10/2015 +0.831%

2.730.000,00 EUR 100,914 74.535.723,03 2,45 2,12

SOCIETE GENERALE SA 3E+43 22/10/2015-22/07/2015 +0.411%

3.000.000,00 EUR 100,381 81.456.550,10 2,67 2,31

Germany

DEUTSCHE BANK AG 3E+55 15/07/2014-15/04/2014 0.878%

2.800.000,00 EUR 98,614 74.695.373,06 2,45 2,12

DEUTSCHE PFANDBRIEFBANK AG 13/17 +2.25% 11/09 11/09

1.800.000,00 EUR 102,604 50.659.593,06 1,66 1,44

MFINANCE FRANCE SA 14/19 2.375% 01/04 01/04 1.800.000,00 EUR 101,574 49.556.419,37 1,63 1,41

Netherlands

ABN AMRO BANK NV 3E+80 06/06/2014-06/03/2014 1.087%

2.500.000,00 EUR 101,210 68.500.886,87 2,25 1,95

AEGON 12/17 3.00% 18/07 2.300.000,00 EUR 103,665 65.973.331,49 2,17 1,87

ING BANK 3E+41 20/08/2015-20/05/2015 +0.399% 3.000.000,00 EUR 100,016 81.190.375,64 2,67 2,31

LEASEPLAN CORP NV 3E+45 28/01/2015-29/10/2014 0.535144

750.000,00 EUR 100,052 20.296.843,34 0,67 0,58

LEASEPLAN CORP NV 3P+60 19/02/2016-19/11/2015 +0.89%

60.000.000,00 CZK 100,260 60.265.999,98 1,98 1,71

124

VAN LANSCHOT BANKIERS NV 13/18 3.125% 05/06 05/06

2.400.000,00 EUR 104,914 69.954.846,63 2,30 1,99

Norway

SPAREBANK 1 SMN 13/19 2.125% 27/02 27/02 2.500.000,00 EUR 104,129 70.673.822,48 2,32 2,01

Poland

PKO FINANCE AB 14/19 2.324% 23/01 23/01 1.700.000,00 EUR 102,986 47.651.701,65 1,56 1,35

Switzerland


1.000.000,00 EUR 99,793 26.993.904,28 0,89 0,77

CREDIT SUISSE AG/LONDON 3P 16/23 8/3-6-9-12 33.000.000,00 CZK 107,500 35.475.000,00 1,17 1,01

U.K.


2.500.000,00 EUR 99,503 67.340.838,24 2,21 1,91

LLOYDS BANK PLC 3E+45 10/03/2015-10/12/2014 +0.532%

2.600.000,00 EUR 99,423 69.942.338,25 2,30 1,99


2.800.000,00 EUR 100,176 75.867.173,02 2,49 2,15

U.S.A.

GOLDMAN SACHS 3E+55 27/10/2015-27/07/2015 +0.531%

2.000.000,00 EUR 100,244 54.230.148,48 1,78 1,54

JPMORGAN CHASE & CO 3E+60 07/08/2014-07/05/2014 0.945%

2.800.000,00 EUR 100,514 76.200.787,44 2,50 2,16

Corporate bonds

Belgium

ANHEUSER-BUSCH INBEV NV 3E+25 19/01/2016-19/10/2015 +0.198%

1.100.000,00 EUR 99,832 29.702.279,24 0,98 0,84

Czech Republic

CESKE DRAHY AS 11/16 4.50% 24/06 24/06 2.400.000,00 EUR 100,557 67.789.659,59 2,23 1,93

Ireland

CATERPILLAR INT FIN 3E+22 13/08/2015-13/05/2015 +0.211%

3.000.000,00 EUR 99,902 81.070.282,58 2,66 2,30

GE CAPITAL EUROPEAN FUNDING 3E+40 19/06/2015-19/03/2015 +0.425%

800.000,00 EUR 100,304 21.708.275,78 0,71 0,62

Netherlands

B.M.W. FIN 3E+35 04/07/2015-07/04/2015 +0.669% 1.050.000,00 EUR 100,083 28.425.956,10 0,93 0,81

DELTA LLOYD 10/17 4.25% 17/11 2.400.000,00 EUR 105,928 70.036.158,45 2,30 1,99

VOLKSWAGEN INTL.FIN. NV 3E+30 16/07/2015-16/04/2015 +0.308%

3.000.000,00 EUR 98,955 80.296.329,44 2,64 2,28

Poland

POLSKIE KOLEJE PANSTWOWE SA 11/16 +5.75% 20/10 20/10

1.900.000,00 EUR 102,312 54.168.893,74 1,78 1,54

PZU FINANCE AB 14/19 1.375% 03/07 03/07 2.000.000,00 EUR 100,219 54.835.539,97 1,80 1,56

Slovakia

ZAPADOSLOVENSKA ENERGETIKA AS 13/18 2.875% 14/10

1.500.000,00 EUR 106,064 43.678.442,22 1,43 1,24

U.S.A.

TOYOTA MOTOR CREDIT CORP 3E+20 20/04/2015-21/01/2015 +0.26796

3.050.000,00 EUR 99,781 82.314.212,82 2,70 2,34

Total bonds 3.045.563.757,58 99,99 86,47

Forward contracts CZK 261.848,87 0,01


125


Demand accounts

Belgium

KBC GROUP CZK 475.762.464,56 CZK 1,000 475.762.464,56 13,51

KBC GROUP EURO 52.782,13 EUR 1,000 1.427.624,69 0,04




Receivables

Belgium

KBC GROUP CZK RECEIVABLE 999,13 CZK 1,000 999,13

Total receivables 999,13

Payables

Belgium

KBC GROUP CZK PAYABLE -30.033,12 CZK 1,000 -30.033,12 0,00

Payables -30.033,12 0,00

TOTAL RECEIVABLES AND PAYABLES -29.033,99 0,00

OTHER

Interest receivable CZK 63.994,39 0,00

Expenses payable CZK -1.342.970,63 -0,04

Expenses to be carried forward CZK 446.685,95 0,01

TOTAL OTHER -832.290,29 -0,02

TOTAL NET ASSETS 3.522.154.371,42 100,00

126


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Australia 2,80 8,12 8,65 1,79 Austria 2,56 1,82 3,36 6,08 Belgium -0,24 0,08 -0,13 1,00 Switzerland 2,54 1,81 2,67 2,06 China 1,91 3,79 3,72 3,75 Czech Republic 47,94 29,28 5,47 23,81 Germany 0,96 4,04 5,74 5,74 Denmark 0,00 1,36 3,83 1,34 France 10,17 6,37 9,57 10,34 U.K. 4,55 5,23 8,21 7,03 Hong Kong 1,91 0,00 0,00 0,00 India 0,00 2,40 2,32 0,00 Ireland 2,56 1,82 3,37 3,39 Iceland 0,14 0,10 0,20 0,00 Netherlands 10,50 15,10 23,64 17,82 Norway 2,83 0,00 0,00 2,32 Poland 0,00 4,92 5,10 5,09 Slovakia 3,70 4,12 1,42 1,42 Sweden 0,00 2,01 2,54 0,00 Turkey 0,00 0,99 0,98 0,00 U.S.A. 5,17 6,64 9,34 7,02 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Cyclicals 1,00 3,49 2,65 1,46 Consum(cycl) 2,67 1,56 10,43 10,47 Cons.goods 0,00 0,00 2,91 1,01 Financials 42,28 63,07 77,66 64,81 Governm. 54,05 31,88 3,58 22,25 Various 0,00 0,00 2,77 0,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

CZK 100,33 100,71 100,80 100,05 EUR -0,33 -0,71 -0,80 -0,05 Total 100,00 100,00 100,00 100,00

127

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CSOB

KRATKODOBY (IN THE CURRENCY OF THE SUB-FUND)


Purchases 1.230.285.200,56 1.380.845.938,96 2.611.131.139,52 Sales 1.151.255.726,64 1.335.424.830,72 2.486.680.557,36 Total 1 2.381.540.927,20 2.716.270.769,68 5.097.811.696,89 Subscriptions 3.156.392.736,54 269.065.280,30 3.425.458.016,84 Redemptions 2.731.547.528,61 408.773.969,36 3.140.321.497,97 Total 2 5.887.940.265,15 677.839.249,66 6.565.779.514,81 Monthly average of total assets

3.598.873.433,17 3.532.525.360,06 3.565.831.564,09

Turnover rate -97,43 % 57,70 % -41,17 %


Purchases 1.230.285.200,56 1.380.845.938,96 2.611.131.139,52 Sales 1.151.255.726,64 1.335.424.830,72 2.486.680.557,36 Total 1 2.381.540.927,20 2.716.270.769,68 5.097.811.696,89 Subscriptions 3.156.392.736,54 269.065.280,30 3.425.458.016,84 Redemptions 2.731.547.528,61 408.773.969,36 3.140.321.497,97 Total 2 5.887.940.265,15 677.839.249,66 6.565.779.514,81 Monthly average of total assets

4.150.370.884,36 2.923.362.618,17 7.804.188.293,06


-84,48 % 69,73 % -18,81 %

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.


NAME Currency

Value in

currency

In the currency of the sub-fund

Lot-size

Transaction

date

KBC AK-VK CZK-EUR 160530-160229 27.054

CZK 420.960.240,00 420.960.240,00 N/A 25.02.2016

KBC AK-VK CZK-EUR 160530-160329 27.057

CZK 744.067.500,00 744.067.500,00 N/A 24.03.2016

KBC AK-VK CZK-EUR 160530-160429 27.035

CZK 513.665.000,00 513.665.000,00 N/A 27.04.2016

KBC AK-VK CZK-EUR 160630-160429 27.0682

CZK 493.994.650,00 493.994.650,00 N/A 27.04.2016

128


VALUE

Classic Shares



Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 5.961.806,85 0,00 9.992.677,47 23.291,00 21.491.166,65 127.394,00 21.618.560,65

2015 - 04* 7.924.173,65 0,00 4.120.694,59 5.130,00 25.294.645,71 122.264,00 25.416.909,71

2016 - 04* 5.018.012,01 0,00 22.786.997,21 27.754,00 7.525.660,51 94.510,00 7.620.170,51




Capitalization Distribution Capitalization Distribution 2014 - 04* 775.512.337,76 0,00 1.299.592.907,02 2.332.863,65

2015 - 04* 1.022.607.823,25 0,00 532.799.976,53 504.363,50

2016 - 04* 645.079.341,72 0,00 2.920.302.287,12 2.711.392,86




Capitalization Distribution 2014 - 04* 2.798.552.943,59 129,63 99,63

2015 - 04* 3.270.125.795,88 128,81 98,15

2016 - 04* 972.396.761,03 127,99 96,83 * The financial year does not coincide with the calender year.

129




Cap. Dis. Cap. Dis. Cap. Dis. Total 2016 - 04* 2.783.188,00 228.667,00 2.554.521,00 2.554.521,00

Period

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


Capitalization Distribution Capitalization Distribution 2016 - 04* 2.782.852.238,05 227.997.072,92

Period

Net asset value End of period (in the currency of the class)


Capitalization Distribution 2016 - 04* 2.549.757.610,39 998,14

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

130


Classic Shares

131

Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0173476400 EUR 0.76% -2.14% -2.39% 1.26% 31/03/2000

CAP BE0173476400 CZK -0.64% 0.31% -0.57% 0.37% -0.19% 0.66% 0.74% 1.65% 31/03/2000 1.55%

DIV BE0173475394 EUR 0.79% -2.09% -2.36% 1.27% 31/03/2000 3.32%

DIV BE0173475394 CZK -0.62% 0.31% -0.53% 0.37% -0.16% 0.66% 0.75% 1.65% 31/03/2000 1.54%



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

132

Classic Shares 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






[ 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.



These are the performance figures for capitalisation and distribution shares. Institutional B Shares The cumulative returns are shown where they relate to a period of at least one year.

Dividend on ex-dividend date 29/07/2016: 0.7300 CZK net (1.0000 CZK gross). In accordance with the Royal Decree of 10 November 2006 on the accounting and the annual accounts of certain public collective investment undertakings, investors are informed that the General Meeting of the fund will decide to pay a dividend despite the fact that a negative ‘result available for appropriation’ was recorded for the corresponding financial year. Investors are also informed that the dividend to be paid stems directly from the interest, dividends and realised capital gains received from the investments made during the financial year corresponding to the dividend to be paid out.

133

2.4.6 COSTS

Ongoing Charges: *

Classic Shares Distribution: 0.566% Classic Shares Capitalization: 0.577% Institutional B Shares Capitalization: Not applicable * The following are not included in the charges shown: entry and exit charges, performance fees, transaction costs paid when buying or selling assets, interest paid, payments made with a view to providing collateral in the context of derivative financial instruments, or commissions relating to Commission Sharing Agreements or similar fees received by the Management Company or any person associated with it.


Not applicable.




Fee for managing the investment portfolio: max.1% per year calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets invested in underlying undertakings for collective investment managed by a financial institution of the KBC group. CSOB Asset Management a.s. receives a fee from the management company of max. 1% per year 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: 1786 EUR per year. This fee is not including VAT and can be indexed on an annual basis in accordance with the decisions of the general meeting. 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 underlying undertakings for collective investment managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year.

134


135


TABLE OF CONTENTS

2. Information on KBC Multi Interest CSOB CZK Medium


2.2. Balance sheet




136

137

2 INFORMATION ON KBC MULTI INTEREST CSOB CZK MEDIUM



Classic Shares : Launch date: 31 March 2003 Initial subscription price: 100 CZK Currency: CZK Institutional B Shares : Launch date: 28 November 2014 Initial subscription price: 1000 CZK Currency: CZK


Not applicable.










Derivatives may be used to achieve the investment objectives as well as to hedge in risks. It is possible to work with either listed or unlisted derivatives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions may only be concluded with prime financial institutions specialised in such transactions. Subject to the applicable laws and regulations and the articles of association, the sub-fund will always seek to conclude the most effective transactions. All costs associated with the transactions will be charged to the sub-fund and all income generated will be paid to the sub-fund. If the transactions result in a risk in respect of the counterparty, this risk can be hedged by using a margin management system that ensures that the sub-fund is the beneficiary of security (collateral) in the form of cash or investment grade bonds. When calculating the value of the bonds, a margin will be applied that varies depending on their residual term to maturity and the currency in which they are denominated. The relationship with the counterparty or counterparties is governed by standard international agreements.

138

The UCI may conclude contracts that relate to credit risk in respect of issuers of debt instruments. Credit risk is the risk that the issuer of the debt instrument will default. It relates to parties whose creditworthiness at the time the contract is concluded is equal to that of the issuers whose debt instruments the UCI holds directly. Derivatives can also be used to hedge the assets of the sub-fund against open exchange risks in relation to the currency. Where credit derivatives are used, they are permitted only in order to achieve the investment objectives and within the existing risk profile and may not result in a shift to less creditworthy debtors. Consequently there is no increase in the credit risk. Where derivatives are used, they must be easily transferable and liquid instruments. The use of derivatives does not, therefore, affect the liquidity risk. Furthermore, using derivatives does not affect the portfolio’s allocation across regions, industry sectors or themes. As a result, they have no effect on concentration risk. Derivatives are not used to protect capital, either fully or partially. They neither increase nor decrease capital risk. In addition, using derivatives has no effect on settlement risk, custody risk, exchange rate risk, flexibility risk, inflation risk or risk dependent on external factors.

STRATEGY SELECTED

Assets are invested in fixed income instruments denominated in Czech koruna as well as in other currencies. Investments in other currencies are in principle subject to a currency risk hedge. The assets are invested primarily in financial instruments with an interest rate risk of up to 4 years.

RISK CONCENTRATION

Short-term bonds in Czech koruna.


The assets are invested primarily in bonds and debt securities, issued by both companies and governments, that have an investment grade rating (BBB- or higher) from Standard & Poor's or an equivalent rating from Moody's or Fitch. All maturities are taken into consideration when selecting the bonds and debt instruments.

Derogation for investments in public issuers: The sub-fund has been granted a derogation to invest up to 100% of its assets in various issues of securities and money market instruments that are issued or guaranteed by a Member State of the European Economic Area, by its local authorities, by a state that is not a Member State of the European Economic Area or by public international institutions in which one or more Member States of the European Economic Area participate. The sub-fund can invest more than 35% of its assets in securities or money market instruments issued by:

– the Czech Republic





139







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

Where relevant, please refer to 'Information concerning the Bevek – Tax treatment' in the prospectus to find out more about the application of European and Belgian tax provisions.


The management company has delegated the intellectual management, to CSOB Asset Management a.s., Radlicka 333/150 , 150 57 Praha 5, CZECH REPUBLIC..

140

2.1.5 DISTRIBUTORS




141


MACROECONOMIC AND FIXED-INCOME DEVELOPMENT

The Czech economy growth was pretty strong in 2015. The GDP increased by 4.00% on the year to year base as manufacturing industry was the main contributor. The economy grows at tremendous speed and the growth is considered as one of the highest in Europe. The consumer price inflation was below the target of the Czech National Bank (the “CNB”) throughout 2015 and first quarter of 2016 mainly due to decreasing oil prices and the CNB continued to intervene against the Czech koruna to defend the intervention level at 27 CZK/EUR. In April 2016, the consumer price inflation increased by 0.60% y-o- y. The CNB should hold weak Czech koruna at least until the end of 2016 and possibly to mid of 2017. The inflation should slowly pick up due to strong GDP, external factors and improving economic data as base effect of oil prices diminish. The official CNB rate remained at the level of 0.05% during the last twelve months and it is actually slightly higher than the official rate of ECB. The yields on the short end of the local yield curve continued decreasing during the last twelve months as the 12 month inter-bank rate fell from 0.48% to 0.45%. In the course of the last twelve months, the Czech yield curve has flattened significantly as the long-term yields plunged by approximately 35 bps compared to 3 bps decrease of the short term yields.

INVESTMENT STRATEGY AND ASSET ALLOCATION

The Fund has invested mainly in Czech government bonds, short and mid-term eurobonds and term deposits. These instruments offer good accessibility and corresponding returns. In investments denominated in foreign currency the currency risk is fully hedged. During the last twelve months, the Fund’s modified duration hovered between 1.1 and 2.0 years. The fund’s neutral modified duration is 1 year.

2.1.8 FUTURE POLICY

The Czech National Bank is anticipated to keep its official interest rate at the present level of 0.05% for the rest of 2016 and rate hike in 2017 is not certain. As for the long term yields, we expect the increase of the rates as their level should normalize. However at the shorter end of the yield curve, the yields should remain at the low levels as low inflation and loose monetary policy persist. We intend to keep the modified duration above or at the benchmark-neutral level during the months with the option to shorten it as the Czech and EU economy show stronger than expected rebound.



142

2.2 BALANCE SHEET



TOTAL NET ASSETS 7.326.574.921,27 9.953.951.467,27


A. Bonds and other debt instruments a) Bonds 5.463.969.212,51 9.670.161.232,30 B. Money market instruments 1.447.136.480,07 219.865.230,00 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -835.847,25 32.512.803,97

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 26.282.659,70 372.040.684,51 B. Payables a) Accounts payable (-) -15.552.125,52 -395.224.493,00 c) Borrowings (-) -13.106.064,37


VI. Accruals and deferrals A. Expense to be carried forward 1.075.533,04 1.291.406,55 B. Accrued income 1.965.183,29 C. Accrued expense (-) -3.565.511,60 -4.893.395,06


A. Capital 7.421.584.363,25 9.876.161.833,91

B. Income equalization -17.260.588,81 -32.496.219,53




III.A Purchased futures and forward contracts 3.899.348.254,90 6.050.653.277,23 III.B Written futures and forward contracts -389.368.077,55

143




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -135.792.903,20 21.754.528,39 B. Money market instruments 90.298,50 -85.604,67 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts -33.348.651,22 128.669.140,17 b) Other foreign exchange positions and

transactions 12.572.822,32 -139.174.397,55

Det.section I gains and losses on investments Realised gains on investments 229.196.082,65 199.577.819,02 Unrealised gains on investments -1.914.170.928,84 1.490.383.374,38 Realised losses on investments -228.319.022,75 -270.110.601,26 Unrealised losses on investments 1.756.815.435,34 -1.408.686.925,80

II. Investment income and expenses B. Interests a) Securities and money market instruments 130.697.470,44 159.295.106,02 b) Cash at bank and in hand and deposits 5.852,43 16.557,63 C. Interest on borrowings (-) -5.927,26 -6.651,11



6.196.705,33 1.907.290,00

IV. Operating expenses B. Financial expenses (-) -6.217,78 -35.506,60 C. Custodian's fee (-) -1.767.531,89 -1.583.172,95 D. Manager's fee (-) a) Financial management Classic Shares -21.061.294,25 -42.054.820,50 Institutional B Shares -29.706.752,51 -10.746.377,81 b) Administration and accounting management -4.230.661,00 -4.400.088,49 E. Administrative expenses (-) -19.851,70 -11.725,83 F. Formation and organisation expenses (-) -106.438,20 -257.783,60 G. Remuneration, social security charges and

pension -4.815,34 -9.626,31

H. Services and sundry goods (-) -94.864,61 -198.784,30 J. Taxes Classic Shares -1.372,35 -1.964,93 Institutional B Shares -434.817,82 9.969,47 K. Other expenses (-) -729.903,06 -2.800.234,14




144




cancellation of shares) -17.260.588,81 -32.496.219,53


IV. (Dividends to be paid out) -4.408.160,57 -5.054.794,75

145


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CSOB CZK MEDIUM


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Cayman Islands

IPIC GMTN LTD 12/18 2.375% 30/07 6.200.000,00 EUR 103,549 176.682.007,65 2,56 2,41

Czech Republic

CZECHIA 13/16 0.5% 28/07 840.000.000,00 CZK 100,156 844.530.399,72 12,23 11,53

CZECHIA 14/18 0.85% 17/03 17/03 550.000.000,00 CZK 101,751 560.242.544,40 8,11 7,65


Australia

HYPO NOOE GRUPPE BANK AG 6P+60 1.20% 22/05/13-22/11/13

142.000.000,00 CZK 99,820 142.360.403,81 2,06 1,94

MACQUARIE BANK LTD 13/18 2.50% 18/09 18/09 5.000.000,00 EUR 105,124 144.282.061,83 2,09 1,97

Austria

ERSTE GROUP BANK AG 3P+40 28/04/2014-28/01/2014 0.78%

40.000.000,00 CZK 100,750 40.304.599,96 0,58 0,55

RAIFFEISEN BANK INTL 13/18 1.875% 08/11 08/11 3.900.000,00 EUR 103,379 110.011.772,02 1,59 1,50

RAIFFEISEN BANK INTL 3E+85 27/01/2015-18/11/2014 +0.929%

2.500.000,00 EUR 100,259 67.801.772,82 0,98 0,93

VORARLBERGER LANDES-U.HYPOTH.BK AG 14/19 1.50% 22/05 22/05

6.400.000,00 EUR 100,926 177.175.806,83 2,56 2,42

China

BANK OF CHINA LTD/HONG KONG 3E+43 30/07/2015-30/04/2015 +0.428%

6.600.000,00 EUR 99,410 177.464.711,73 2,57 2,42

CHINA DEVELOPMENT BANK CORP/HO 3E+65 06/05/2015-06/02/2015 +0.704%

7.500.000,00 EUR 100,590 204.277.132,42 2,96 2,79

Czech Republic

CESKA EXPORTNI BANKA AS 6P+75 22/09-22/03 150.000.000,00 CZK 101,830 152.943.874,95 2,21 2,09

CESKA EXPORTNI BANKA AS 6P+77 14/06-14/12 2.27%

111.000.000,00 CZK 101,630 113.308.429,93 1,64 1,55

HYPOTECNI BANKA 3P+60 25/12/2015-25/09/2015 +0.97%

97.230.000,00 CZK 100,400 97.618.920,00 1,41 1,33

Denmark

NYKREDIT A/S 3E+55 10/12/2014-10/09/2014 0.644% 5.000.000,00 EUR 100,169 135.534.029,50 1,96 1,85

France

BANQUE FEDERATIVE DU CREDIT MUTUEL 3E+72 20/06/2014-20/03/2014 1.029%

3.000.000,00 EUR 101,058 82.049.187,88 1,19 1,12

BNP PARIBAS SA 3P 13/18 25/1-4-7-10 120.000.000,00 CZK 100,650 120.808.200,00 1,75 1,65

BNP PARIBAS SA 3P+106 10/05/2016-10/02/2016 +1.35%

30.000.000,00 CZK 107,010 32.197.499,97 0,47 0,44

BPCE SA 12/18 2% 24/4 1.000.000,00 EUR 103,885 28.113.081,43 0,41 0,38

CAISSE CENTRALE DU CREDIT IMMO 10/18 4.00% 12/01 12/01

6.000.000,00 EUR 105,481 173.184.620,04 2,51 2,36

CREDIT AGRICOLE HOME LOAN SFH 3P+100 1.5% 01/02 - 02/05/13

125.000.000,00 CZK 101,000 126.258.958,25 1,83 1,72

SOCIETE GENERALE SA 3M CZK 13/18 02-05 138.000.000,00 CZK 100,970 139.338.600,00 2,02 1,90

146

Germany

MFINANCE FRANCE SA 14/19 2.375% 01/04 01/04 6.300.000,00 EUR 101,574 173.447.467,65 2,51 2,37

Italy

UNICREDIT SPA 3E+95 10/07/2014-10/04/2014 1.269% 6.000.000,00 EUR 100,538 163.230.984,87 2,36 2,23

Netherlands

ABN AMRO BANK NV 12/19 4.75% 11/01 2.000.000,00 EUR 112,407 61.606.910,40 0,89 0,84

COOPERATIEVE RABOBANK UA 3E+50 20/06/2014-20/03/2014 0.809%

3.000.000,00 EUR 100,611 81.664.662,49 1,18 1,12

ING BANK 3P 12/17 28/02 FRN 169.000.000,00 CZK 101,350 171.620.204,05 2,48 2,34

KBC IFIMA 13/18 2.125% 10/09 10/09 6.000.000,00 EUR 104,856 172.398.441,44 2,50 2,35

LEASEPLAN CORP NV 3P+60 19/02/2016-19/11/2015 +0.89%

50.000.000,00 CZK 100,260 50.221.666,65 0,73 0,69

VAN LANSCHOT BANKIERS NV 13/18 3.125% 05/06 05/06

3.800.000,00 EUR 104,914 110.761.840,46 1,60 1,51

Norway

SPAREBANK 1 SMN 13/19 2.125% 27/02 27/02 4.400.000,00 EUR 104,129 124.385.927,48 1,80 1,70

Poland

PKO FINANCE AB 14/19 2.324% 23/01 23/01 6.350.000,00 EUR 102,986 177.993.120,50 2,58 2,43

Slovakia

CALYON BANK 11/16 3.81% 04/05 45.000.000,00 CZK 99,540 46.507.500,00 0,67 0,64

South Korea

EXPORT-IMPORT BK KOREA 3P+500 0.96% 17/06/13-17/09/13

110.000.000,00 CZK 101,450 111.710.866,63 1,62 1,53

Switzerland

CREDIT SUISSE AG/LONDON 3P 16/23 8/3-6-9-12 25.000.000,00 CZK 107,500 26.875.000,00 0,39 0,37

Turkey

AK FINANSAL KIRALAMA AS 3P+230 30/06/2014-28/03/2014 2.67%

123.000.000,00 CZK 99,858 123.143.910,00 1,78 1,68

TURKIYE GARANTI BANKASI A.S. 3PR 13/16 03-01 171.000.000,00 CZK 100,090 171.480.224,94 2,48 2,34

TURKIYE VAKIFLAR BANKASI T.A.O. 16/21 +2.375% 04/05 04/05

1.000.000,00 EUR 100,058 27.063.188,07 0,39 0,37

U.K.

COVENTRY BUILDING SOCIETY 12/17 2.25% 04/12 5.000.000,00 EUR 103,093 140.683.897,13 2,04 1,92

ROYAL BANK OF SCOTLAND GROUP PLC 3E+75 08/07/2015-08/04/2015 +0.768%

340.000,00 EUR 99,261 9.131.479,06 0,13 0,13

Corporate bonds

Czech Republic

CESKA ZBROJOVKA AS 6P+170 27/07/2016-27/01/2016 +2.07%

21.000.000,00 CZK 101,040 21.336.734,98 0,31 0,29

CESKE DRAHY AS 12/19 4.125% 23/07 23/07 5.000.000,00 EUR 109,829 152.889.189,12 2,21 2,09

CPI BYTY AS 13/17 +3.50% 07/05 07/05 30.000.000,00 CZK 100,850 31.313.749,98 0,45 0,43

CPI BYTY AS 13/19 +4.80% 07/05 07/05 30.000.000,00 CZK 103,000 32.351.999,97 0,47 0,44

CPI BYTY AS 15/17 +2.50% 11/05 11/05 32.000.000,00 CZK 99,750 32.717.777,76 0,47 0,45

PEGAS NONWOVENS SA 14/18 +2.85% 14/11 14/11 83.000.000,00 CZK 101,880 85.677.441,64 1,24 1,17

Ireland

GE CAPITAL EUROPEAN FUNDING 12/19 2.875% 18/06

550.000,00 EUR 108,725 16.549.189,73 0,24 0,23

Netherlands

DELTA LLOYD 10/17 4.25% 17/11 3.500.000,00 EUR 105,928 102.136.064,45 1,48 1,39

Poland

POLSKIE KOLEJE PANSTWOWE SA 11/16 +5.75% 20/10 20/10

1.200.000,00 EUR 102,312 34.211.932,80 0,50 0,47

PZU FINANCE AB 14/19 1.375% 03/07 03/07 6.400.000,00 EUR 100,219 175.473.728,18 2,54 2,40

147

South Korea

KOREA GAS CORP 13/19 2.375% 15/04 15/04 5.900.000,00 EUR 105,382 168.365.880,36 2,44 2,30

Switzerland

XSTRATA FINANCE DUBAI LTD 12/18 2.625% 19/11 19/11

5.000.000,00 EUR 100,249 137.194.268,92 1,99 1,87

U.S.A.

GENERAL ELECTRIC CO 3P+45 0.95 05/02 07/05 130.000.000,00 CZK 100,180 130.471.827,72 1,89 1,78

Total bonds 6.911.105.692,57 100,01 94,33

Forward contracts CZK -835.847,25 -0,01



Demand accounts

Belgium

KBC GROUP CZK 421.170.584,70 CZK 1,000 421.170.584,70 5,75

KBC GROUP EURO -484.557,32 EUR 1,000 -13.106.064,37 -0,18




Receivables

Belgium

KBC GROUP CZK RECEIVABLE 26.282.659,70 CZK 1,000 26.282.659,70 0,36


Payables

Belgium

KBC GROUP CZK PAYABLE -15.552.125,52 CZK 1,000 -15.552.125,52 -0,21

Payables -15.552.125,52 -0,21


OTHER

Expenses payable CZK -3.565.511,60 -0,05

Expenses to be carried forward CZK 1.075.533,04 0,02

TOTAL OTHER -2.489.978,56 -0,03

TOTAL NET ASSETS 7.326.574.921,27 100,00

148


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Australia 4,01 3,49 3,85 4,14 Austria 5,08 5,67 5,88 5,71 Belgium -0,42 0,32 0,08 -0,02 Bulgaria 1,05 0,90 0,00 0,00 Switzerland 1,71 1,48 1,47 2,37 China 1,29 4,31 5,14 5,56 Czech Republic 22,34 23,63 28,48 30,73 Cayman Islands 0,00 2,06 2,42 2,53 Germany 2,72 3,03 2,50 2,52 Denmark 1,62 1,40 1,67 1,97 France 9,19 8,30 9,93 10,19 U.K. 4,75 4,17 3,68 2,16 Hong Kong 1,62 0,00 0,00 0,00 India 2,01 1,99 1,67 0,00 Ireland 0,20 0,17 0,20 0,24 Italy 4,19 3,62 2,84 2,38 South Korea 2,14 3,07 3,65 4,08 Luxembourg 2,91 1,07 0,00 0,00 Netherlands 13,33 12,66 11,34 10,81 Norway 1,72 1,89 1,88 1,81 Poland 2,27 5,21 5,53 5,59 Romania 1,90 1,64 0,00 0,00 Slovenia 1,39 1,16 0,00 0,00 Slovakia 0,55 0,47 0,56 0,65 Sweden 4,80 2,30 0,00 0,00 Turkey 3,41 3,28 3,97 4,68 U.S.A. 4,22 2,71 3,26 1,90 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Cyclicals 5,65 3,42 3,55 2,39 Consum(cycl) 0,90 2,88 3,42 4,05 Financials 64,55 64,15 63,32 66,13 Utilities 0,91 2,08 2,45 2,56 Real est. 0,00 0,00 1,23 3,54 Governm. 24,32 23,96 21,89 21,33 Various 3,67 3,51 4,14 0,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

CZK 99,21 99,39 101,68 100,69 EUR 0,79 0,61 -1,68 -0,69 Total 100,00 100,00 100,00 100,00

149

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CSOB CZK

MEDIUM (IN THE CURRENCY OF THE SUB-FUND)


Purchases 195.353.834,69 215.266.647,32 410.620.482,01 Sales 1.693.272.452,11 1.552.085.956,54 3.245.358.408,65 Total 1 1.888.626.286,80 1.767.352.603,86 3.655.978.890,65 Subscriptions 1.981.158.241,83 1.378.055.724,89 3.359.213.966,72 Redemptions 3.477.702.929,90 2.402.280.375,41 5.879.983.305,31 Total 2 5.458.861.171,73 3.780.336.100,30 9.239.197.272,03 Monthly average of total assets

9.234.498.387,97 7.621.981.779,68 8.431.452.268,30

Turnover rate -38,66 % -26,41 % -66,22 %


Purchases 195.353.834,69 215.266.647,32 410.620.482,01 Sales 1.693.272.452,11 1.552.085.956,54 3.245.358.408,65 Total 1 1.888.626.286,80 1.767.352.603,86 3.655.978.890,65 Subscriptions 1.981.158.241,83 1.378.055.724,89 3.359.213.966,72 Redemptions 3.477.702.929,90 2.402.280.375,41 5.879.983.305,31 Total 2 5.458.861.171,73 3.780.336.100,30 9.239.197.272,03 Monthly average of total assets

9.328.094.489,56 8.047.749.156,21 8.777.817.157,78


-38,27 % -25,01 % -63,61 %

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.

150


NAME Currency

Value in

currency


Lot-size

Transaction

date

KBC AK-VK CZK-EUR 160603-151203 26.91625

CZK 164.189.125,00 164.189.125,00 N/A 01.12.2015

KBC AK-VK CZK-EUR 160603-151204 26.91752

CZK 244.141.906,40 244.141.906,40 N/A 02.12.2015

KBC AK-VK CZK-EUR 160902-151204 26.84145

CZK 66.566.796,00 66.566.796,00 N/A 02.12.2015

KBC AK-VK CZK-EUR 160607-151207 26.92863

CZK 232.663.363,20 232.663.363,20 N/A 03.12.2015

KBC AK-VK CZK-EUR 160610-151210 26.88437

CZK 16.130.622,00 16.130.622,00 N/A 08.12.2015

KBC AK-VK CZK-EUR 160623-151223 26.86506

CZK 86.908.469,10 86.908.469,10 N/A 21.12.2015

KBC AK-VK CZK-EUR 160513-160216 27.06492

CZK 33.966.474,60 33.966.474,60 N/A 12.02.2016

KBC AK-VK CZK-EUR 160607-160307 27.07241

CZK 138.069.291,00 138.069.291,00 N/A 01.03.2016

KBC AK-VK CZK-EUR 160614-160314 27.06352

CZK 86.873.899,20 86.873.899,20 N/A 10.03.2016

KBC AK-VK CZK-EUR 160722-160317 27.06404

CZK 67.660.100,00 67.660.100,00 N/A 15.03.2016

KBC AK-VK CZK-EUR 160920-160317 27.05393

CZK 123.906.999,40 123.906.999,40 N/A 15.03.2016

KBC AK-VK CZK-EUR 160719-160318 27.06348

CZK 9.201.583,20 9.201.583,20 N/A 16.03.2016

KBC AK-VK CZK-EUR 160819-160318 27.06122

CZK 81.724.884,40 81.724.884,40 N/A 16.03.2016

KBC AK-VK CZK-EUR 160622-160321 27.0756

CZK 152.164.872,00 152.164.872,00 N/A 17.03.2016

KBC AK-VK CZK-EUR 160621-160321 27.07678

CZK 177.623.676,80 177.623.676,80 N/A 17.03.2016

KBC AK-VK CZK-EUR 160711-160411 27.05583

CZK 135.279.150,00 135.279.150,00 N/A 07.04.2016

KBC AK-VK CZK-EUR 160720-160415 27.0654

CZK 178.631.640,00 178.631.640,00 N/A 13.04.2016

KBC AK-VK CZK-EUR 160713-160415 27.06642

CZK 173.225.088,00 173.225.088,00 N/A 13.04.2016

KBC AK-VK CZK-EUR 160715-160415 27.06649

CZK 81.199.470,00 81.199.470,00 N/A 13.04.2016

KBC AK-VK CZK-EUR 160722-160418 27.07953

CZK 175.475.354,40 175.475.354,40 N/A 14.04.2016

KBC AK-VK CZK-EUR 160803-160418 27.07684

CZK 101.808.918,40 101.808.918,40 N/A 14.04.2016

KBC AK-VK CZK-EUR 160805-160418 27.07639

CZK 204.155.980,60 204.155.980,60 N/A 14.04.2016

KBC AK-VK CZK-EUR 160812-160418 27.06982

CZK 28.694.009,20 28.694.009,20 N/A 14.04.2016

KBC AK-VK CZK-EUR 160715-160418 27.08025

CZK 109.945.815,00 109.945.815,00 N/A 14.04.2016

KBC AK-VK CZK-EUR 160719-160418 27.08019

CZK 178.729.254,00 178.729.254,00 N/A 14.04.2016

KBC AK-VK CZK-EUR 160718-160418 27.08043

CZK 61.472.576,10 61.472.576,10 N/A 14.04.2016

KBC AK-VK CZK-EUR 160722-160421 27.05084

CZK 172.313.850,80 172.313.850,80 N/A 19.04.2016

KBC AK-VK CZK-EUR 160719-160421 27.05093

CZK 163.117.107,90 163.117.107,90 N/A 19.04.2016

KBC AK-VK CZK-EUR 160817-160422 27.04552

CZK 168.493.589,60 168.493.589,60 N/A 20.04.2016

151

KBC AK-VK CZK-EUR 160718-160422 27.05076

CZK 144.315.804,60 144.315.804,60 N/A 20.04.2016

KBC AK-VK CZK-EUR 160725-160425 27.05742

CZK 140.698.584,00 140.698.584,00 N/A 21.04.2016

KBC VK-AK CZK-EUR 160603-160120 27.00486

CZK -135.024.300,00

-135.024.300,00 N/A 18.01.2016

KBC VK-AK CZK-EUR 160902-160126 27.01399

CZK -27.013.990,00 -27.013.990,00 N/A 22.01.2016

KBC VK-AK CZK-EUR 160607-160128 27.01253

CZK -14.046.515,60 -14.046.515,60 N/A 26.01.2016

KBC VK-AK CZK-EUR 160902-160215 27.05

CZK -40.034.000,00 -40.034.000,00 N/A 11.02.2016

KBC VK-AK CZK-EUR 160607-160216 27.01293

CZK -8.509.072,95 -8.509.072,95 N/A 12.02.2016

KBC VK-AK CZK-EUR 160603-160217 27.00659

CZK -164.740.199,00

-164.740.199,00 N/A 16.02.2016

152


VALUE

Classic Shares



Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 23.799.283,10 415.850,08 37.396.084,24 82.270,44 58.033.455,26 1.112.483,31 59.145.938,57

2015 - 04* 28.036.271,56 2.112.598,49 49.632.338,66 261.088,17 36.437.388,16 2.963.993,64 39.401.381,80

2016 - 04* 1.637.710,23 1.267.300,11 20.504.010,13 1.476.193,39 17.571.088,25 2.755.100,36 20.326.188,61




Capitalization Distribution Capitalization Distribution 2014 - 04* 2.993.431.652,59 43.719.842,58 4.698.415.668,52 8.590.174,51

2015 - 04* 3.598.042.963,50 221.610.459,08 6.387.552.691,05 27.343.070,16

2016 - 04* 209.577.276,26 130.099.600,80 2.626.404.066,44 151.033.307,95




Capitalization Distribution 2014 - 04* 7.493.196.609,48 127,10 105,55

2015 - 04* 5.006.197.237,51 128,87 104,75

2016 - 04* 2.529.698.848,40 127,93 102,27 * The financial year does not coincide with the calender year.

153




Cap. Dis. Cap. Dis. Cap. Dis. Total 2015 - 04* 5.351.849,59 403.955,11 4.947.894,48 4.947.894,48

2016 - 04* 3.063.406,86 3.177.509,00 4.833.792,34 4.833.792,34




Capitalization Distribution Capitalization Distribution 2015 - 04* 5.352.986.187,05 404.147.955,82

2016 - 04* 3.045.066.646,49 3.151.639.354,62




Capitalization Distribution 2015 - 04* 4.947.754.229,76 999,97


154


Classic Shares

155

Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0940482673 EUR 0.67% -0.88% -0.62% 2.43% 31/03/2003 3.20%

CAP BE0940482673 CZK -0.73% 0.50% 0.71% 0.66% 1.61% 1.21% 1.91% 2.17% 31/03/2003 1.90%

DIV BE0940476618 EUR 0.65% -0.89% -0.62% 2.43% 31/03/2003 3.19%

DIV BE0940476618 CZK -0.75% 0.50% 0.70% 0.66% 1.62% 1.21% 1.90% 2.17% 31/03/2003 1.89%


156


Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6272658566 EUR 0.64% 28/11/2014 0.93%

CAP BE6272658566 CZK -0.76% 0.50% 28/11/2014 -0.54%


157

Classic Shares 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












158

Institutional B Shares 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








Dividend on ex-dividend date 29/07/2016: 1.1680 CZK net (1.6000 CZK gross). In accordance with the Royal Decree of 10 November 2006 on the accounting and the annual accounts of certain public collective investment undertakings, investors are informed that the General Meeting of the fund will decide to pay a dividend despite the fact that a negative ‘result available for appropriation’ was recorded for the corresponding financial year. Investors are also informed that the dividend to be paid stems directly from the interest, dividends and realised capital gains received from the investments made during the financial year corresponding to the dividend to be paid out.

2.4.6 COSTS

Ongoing Charges: *

Classic Shares Distribution: 0.692% Classic Shares Capitalization: 0.670% Institutional B Shares Capitalization: 0.703% * The following are not included in the charges shown: entry and exit charges, performance fees, transaction costs paid when buying or selling assets, interest paid, payments made with a view to providing collateral in the context of derivative financial instruments, or commissions relating to Commission Sharing Agreements or similar fees received by the Management Company or any person associated with it.


Not applicable.



159



Fee for managing the investment portfolio: 0.6% per year calculated on the basis of the average total net assets of the sub-fund, no management fee is charged on assets invested in underlying undertakings for collective investment managed by a financial institution of the KBC group. CSOB Asset Management a.s. receives a fee from the management company of max. 0.6% per year 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: 1786 EUR per year. This fee is not including VAT and can be indexed on an annual basis in accordance with the decisions of the general meeting. 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 underlying undertakings for collective investment managed by a financial institution of the KBC group. The custody fee is paid at the beginning of the calendar year. 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.

160


TABLE OF CONTENTS

2. Information on KBC Multi Interest Cash 3 Month Duration


2.2. Balance sheet




161

162

2 INFORMATION ON KBC MULTI INTEREST CASH 3 MONTH DURATION



Classic Shares : Launch date: 25 November 2011 Initial subscription price: 1000 EUR Currency: EUR Institutional B Shares : Launch date: 25 November 2011 Initial subscription price: 1000 EUR Currency: EUR


Not applicable.











163


STRATEGY SELECTED

The portfolio has a interest rate sensitivity between 3 months and 4 months. The assets are invested in financial instruments:

- denominated in euros, whereby instruments in other currencies are permitted provided they are hedged against exchange rate risks;

- with a weighted average residual term to maturity of no more than 12 months.


The assets are invested primarily in debt instruments, which may be either money market instruments or securities. Debt instruments issued by either government agencies or companies qualify for consideration. The short-term bonds and other debt instruments have a short-term credit rating of at least A-2 from Standard & Poor's or an equivalent rating from Moody's or Fitch, or, if there is no credit rating available, a credit risk profile that the manager considers to be at least equivalent. The long-term bonds and other debt instruments have a long-term credit rating of at least A- from Standard & Poor's or an equivalent rating from Moody's or Fitch, or, if there is no credit rating available, a credit risk profile that the manager considers to be at least equivalent. The debt instruments in which investments are made have a maximum residual term to maturity of 397 days. If – within a period of 397 days at most – the rate is adjusted to take account of developments on the money market, the residual term to maturity may be extended. However, this term may never be longer than 2 years.





164










165

2.1.5 DISTRIBUTORS





The international stock markets ended the period under review almost 10% down. The main causes of the correction were the falling oil price and fears that the global economy was slowing. The oil price slid in January this year to barely 28 dollars per barrel of Brent crude, after OPEC – the Organisation of Petroleum Exporting Countries – decided on 4 December to give its members a free hand in production. This perpetuated the overproduction of some 2 million barrels per day. The fact that the declining oil price was holding inflation down enabled the central banks to announce new measures. Investors were however disappointed by the further monetary relaxation by the European Central Bank (ECB) and the Bank of Japan, which they considered to be insufficient. The Federal Reserve raised its key rate for the first time in nine years on 16 December. After a false start in September, when the central bank drew on a sharp market correction in China to postpone its initial hike, the Federal Reserve ultimately increased its key rate on 16 December to 0.25-0.50%. A slowing American economy and a lower than expected inflation figure fuelled expectations that the Federal Reserve would be taking any further steps with great caution only and that no marked increase in interest rates was in prospect. Despite the slight increase in interest rates the US dollar weakened by 5.7% against the euro. In addition the major central banks made it clear that they wanted to persist with their flexible monetary policies. The US Federal Reserve postponed further rate hikes. The Bank of Japan announced new support measures and the European Central Bank provided additional stimulus in March 2016 with an expansion of its quantitative easing programme (to include the purchase of corporate bonds), a cut to its already negative policy rate and new long-term financing programmes for the banks. Money market rates continued to come down in Europe throughout the period under review. Three-month Euribor rate fell from -0.01% at the end of April 2015 to -0.25% at the end of April 2016. The duration of the portfolio was in the 120–180 day range throughout. Because of the attractive rate spread, more was invested in floaters (bonds with a variable coupon). For liquidity reasons, at least half the portfolio is always invested in European government paper from the following countries (in order of holding size): France, Belgium, Austria, Germany, the Netherlands, Spain and Finland. The fund also invests in high-quality paper issued by European supranational institutions like the EIB and ESM.

166

2.1.8 FUTURE POLICY




167

2.2 BALANCE SHEET



TOTAL NET ASSETS 2.659.649.687,51 44.467.196,87


A. Bonds and other debt instruments a) Bonds 207.527.691,69 13.925.267,53 B. Money market instruments 1.975.948.852,65 23.502.089,72

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 68.859.455,81 173.732,04 B. Payables a) Accounts payable (-) -5.728.272,57


VI. Accruals and deferrals A. Expense to be carried forward 189.295,97 26.803,76 B. Accrued income 45.462,43 3.622,53 C. Accrued expense (-) -363.672,89 -14.380,19


A. Capital 2.669.198.521,43 45.101.078,43

B. Income equalization -1.231.857,24 -327.080,20


168




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -9.018.368,87 -158.423,00 B. Money market instruments -4.275.319,26 -44.051,87 G. Receivables, deposits, cash at bank and in hand

and payables 18.642,99 7.337,00



Det.section I gains and losses on investments Realised gains on investments 4.802,05 36.502,06 Unrealised gains on investments 461.955,84 9.153,25 Realised losses on investments -8.142.866,60 -241.214,51 Unrealised losses on investments -5.598.936,76 475,54

II. Investment income and expenses B. Interests a) Securities and money market instruments 10.840.075,07 289.446,74 b) Cash at bank and in hand and deposits 57.764,04 50.225,62 C. Interest on borrowings (-) -3,08

IV. Operating expenses A. Investment transaction and delivery costs (-) -108.271,08 0,30 B. Financial expenses (-) -2.010,10 -206,42 C. Custodian's fee (-) -110.602,33 -43.247,84 D. Manager's fee (-) a) Financial management Institutional B Shares -3.797.414,07 -320.902,71 b) Administration and accounting management -1.265.801,58 -52.009,80 F. Formation and organisation expenses (-) -3.149,76 -1.935,09 G. Remuneration, social security charges and

pension -88,11 -52,51

H. Services and sundry goods (-) -6.123,33 -3.973,14 J. Taxes Institutional B Shares -433.076,54 -20.141,28 K. Other expenses (-) -213.233,43 -8.918,49

Income and expenditure for the period Subtotal II + III + IV 4.958.068,77 -111.717,70



169



I. Profit to be appropriated -9.548.833,92 -633.881,56 Profit for the period available for appropriation -8.316.976,69 -306.801,36 Income on the creation of shares (income on the

cancellation of shares) -1.231.857,23 -327.080,20

II. (Appropriations to) Deductions from capital 9.548.833,92 633.881,56

170


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CASH 3 MONTH DURATION


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Belgium

BELGIUM 06/16 3.25 % 28/09 39.000.000,00 EUR 101,523 40.348.929,00 1,85 1,52

BELGIUM 15/16 0.00% 38.000.000,00 EUR 100,314 38.119.320,00 1,75 1,43

BELGIUM 15/16 0.00% 38.000.000,00 EUR 100,268 38.101.840,00 1,75 1,43

BELGIUM 15/16 0.00% 38.000.000,00 EUR 100,062 38.023.560,00 1,74 1,43

BELGIUM 15/16 0.00% 67.000.000,00 EUR 100,013 67.008.710,00 3,07 2,52

BELGIUM 15/16 0.00% 26.000.000,00 EUR 100,097 26.025.220,00 1,19 0,98

BELGIUM 15/16 0.00% 19.000.000,00 EUR 100,136 19.025.840,00 0,87 0,72

BELGIUM 15/16 0.00% 38.000.000,00 EUR 100,184 38.069.920,00 1,74 1,43

BELGIUM 15/16 0.00% 57.000.000,00 EUR 100,225 57.128.250,00 2,62 2,15

BELGIUM 16/17 0.00% 19.000.000,00 EUR 100,343 19.065.170,00 0,87 0,72

BELGIUM 16/17 0.00% 19.000.000,00 EUR 100,378 19.071.820,00 0,87 0,72


EUROPEAN UNION 11/16 +2.75% 18/07 18/07 20.000.000,00 EUR 100,658 20.567.392,34 0,94 0,77

France

FRENCH REPUBLIC 00/16 5% 25/10 126.000.000,00 EUR 102,653 132.630.484,90 6,08 4,99


FRENCH REPUBLIC 13/16 +0.25% 25/11 25/11 18.000.000,00 EUR 100,425 18.096.172,13 0,83 0,68











Germany

FEDERAL REPUBLIC OF GERMANY 06/16 4.00 04/07 18.000.000,00 EUR 100,770 18.736.632,77 0,86 0,70


38.000.000,00 EUR 100,083 38.116.676,61 1,75 1,43

Netherlands

NETHERLANDS 06/16 4.00% 15/07 38.000.000,00 EUR 100,913 39.563.770,57 1,81 1,49

Spain

SPAIN 15/16 0.00% 5.000.000,00 EUR 100,108 5.005.400,00 0,23 0,19


Australia

BANK OF CHINA LTD SYDNEY 03/08/2016 30.000.000,00 EUR 100,029 30.008.700,00 1,37 1,13

WESTPAC SECURISATION TRUST 3E+40 10/06/2014- 5.000.000,00 EUR 100,195 5.011.092,50 0,23 0,19

171

12/03/2014 0.686%

Belgium

KBC GROUP 03/02/2017 18.000.000,00 EUR 100,025 18.004.500,00 0,83 0,68

KBC GROUP 03/08/2016 27.000.000,00 EUR 100,049 27.013.230,00 1,24 1,02

KBC GROUP 03/10/2016 10.000.000,00 EUR 100,021 10.002.100,00 0,46 0,38

KBC GROUP 04/11/2016 16.000.000,00 EUR 100,020 16.003.200,00 0,73 0,60

KBC GROUP 06/07/2016 6.500.000,00 EUR 100,039 6.502.535,00 0,30 0,24

KBC GROUP 08/06/2016 12.500.000,00 EUR 100,028 12.503.500,00 0,57 0,47

Canada

BANK OF NOVA SCOTIA 3E+33 22/06/2016-22/03/2016 +0.10%

10.000.000,00 EUR 100,310 10.032.166,66 0,46 0,38

C.I.B.C. 3E+25 08/12/2015-09/09/2015 +0.217% 8.000.000,00 EUR 100,062 8.005.395,55 0,37 0,30

NAT. BK CANADA 3E+28 09/12/2015-09/09/2015 +0.247%

2.500.000,00 EUR 100,081 2.502.269,44 0,12 0,09

China



ICBC 04/05/2016 20.000.000,00 EUR 100,001 20.000.200,00 0,92 0,75

Denmark

DANSKE BK AS 3E+35 02/06/2015-02/03/2015 +0.39% 6.000.000,00 EUR 100,178 6.012.178,33 0,28 0,23

DANSKE BK AS 3E+90 02/06/2016-02/03/2016 +0.695%

7.500.000,00 EUR 101,175 7.597.102,08 0,35 0,29

JYSKE BANK A/S 03/02/2017 6.000.000,00 EUR 100,034 6.002.040,00 0,28 0,23

JYSKE BANK A/S 03/08/2016 10.000.000,00 EUR 100,051 10.005.100,00 0,46 0,38

France

BANQUE FEDERATIVE DU CREDIT MUTUEL 3E+27 19/04/2016-19/01/2016 +0.126%

10.000.000,00 EUR 100,036 10.003.681,66 0,46 0,38

BANQUE FEDERATIVE DU CREDIT MUTUEL 3L+15 0.117% 29/2-29/5-29/8-29/11

15.000.000,00 EUR 100,030 15.004.500,00 0,69 0,56

BPCE SA 3E+20 10/06/2015-10/03/2015 +0.238% 2.000.000,00 EUR 100,055 2.001.100,00 0,09 0,08

BPCE SA 3E+37 26/02/2016-26/11/2015 +0.414% 5.000.000,00 EUR 100,025 5.002.822,64 0,23 0,19

Germany




DEKABANK 03/02/2017 20.000.000,00 EUR 100,041 20.008.200,00 0,92 0,75

DEKABANK 25/10/2016 5.000.000,00 EUR 100,066 5.003.300,00 0,23 0,19



LANDBK HESSEN-THUERINGEN 03/02/2017 20.000.000,00 EUR 100,049 20.009.800,00 0,92 0,75

LANDBK HESSEN-THUERINGEN 3E+45 25/11/2015-25/08/2015 +0.422%

2.000.000,00 EUR 100,313 2.007.204,44 0,09 0,08

LBBW 3E+45 22/12/2015-24/09/2015 +0.41213 14.000.000,00 EUR 100,299 14.045.371,66 0,64 0,53



NORDDEUTSCHE LANDESBANK 04/11/2016 25.000.000,00 EUR 100,048 25.012.000,00 1,15 0,94

Luxembourg



Netherlands

ABN AMRO BANK NV 3E+20 14/04/2015-14/01/2015 +0.27%

1.500.000,00 EUR 100,058 1.500.870,00 0,07 0,06

ABN AMRO BANK NV 3E+58 01/08/2015-04/05/2015 +0.807%

13.500.000,00 EUR 100,114 13.515.513,00 0,62 0,51

ABN AMRO BANK NV 3E+70 0.657% 05/01-05/04-05/07-05/10

10.000.000,00 EUR 100,581 10.061.773,33 0,46 0,38

ABN AMRO BANK NV 3ME 16/18 02-05 20.000.000,00 EUR 100,325 20.076.129,44 0,92 0,76

172

ACHMEA HYPOTHEEKBANK 19/08/2016 3.000.000,00 EUR 100,069 3.002.070,00 0,14 0,11


4.000.000,00 EUR 100,035 4.001.400,00 0,18 0,15


25.000.000,00 EUR 100,095 25.023.750,00 1,15 0,94


9.000.000,00 EUR 100,073 9.006.580,49 0,41 0,34

ING BANK 3E+22 04/11/2015-04/08/2015 +0.197% 15.000.000,00 EUR 100,039 15.008.037,92 0,69 0,56

ING BANK 3E+50 19/05/2016-19/02/2016 +0.317% 15.000.000,00 EUR 100,350 15.062.274,17 0,69 0,57

ING BANK 3E+655 07/09/2015-05/06/2015 +0.6457 2.000.000,00 EUR 100,509 2.011.579,67 0,09 0,08

ING BANK 3E+71 16/11/2015-14/08/2015 +0.68911 14.500.000,00 EUR 100,641 14.609.627,24 0,67 0,55

South Korea

WOORI BANK 04/05/2016 6.000.000,00 EUR 100,001 6.000.060,00 0,28 0,23

Spain


25.000.000,00 EUR 100,023 25.005.750,00 1,15 0,94

BBVA SENIOR FINANCE SA 03/02/2017 10.000.000,00 EUR 99,980 9.998.000,00 0,46 0,38

Sweden

SKANDINAVISKA ENSKILDA 3E+40 15/12/2015-15/09/2015 +0.362%

8.000.000,00 EUR 100,090 8.009.105,55 0,37 0,30

Switzerland


12.500.000,00 EUR 100,065 12.509.163,89 0,57 0,47

CREDIT SUISSE AG/LONDON 3E+46 10/02/2016-11/11/2015 +0.39176

7.500.000,00 EUR 100,212 7.520.931,87 0,34 0,28

U.K.


13.000.000,00 EUR 100,377 13.060.212,75 0,60 0,49

BANK OF CHINA LONDON 03/02/2017 10.000.000,00 EUR 100,037 10.003.700,00 0,46 0,38

BARCLAYS BANK PLC 3E+32 02/12/2014-02/09/2014 0.638%

600.000,00 EUR 100,024 600.262,83 0,03 0,02

LANDESBANK BW LONDON 03/02/2017 15.000.000,00 EUR 100,041 15.006.150,00 0,69 0,56

LLOYDS BANK PLC 3E+54 23/11/2015-21/08/2015 +0.51815

2.000.000,00 EUR 100,389 2.009.140,83 0,09 0,08


17.000.000,00 EUR 100,550 17.101.631,66 0,78 0,64

NORDDEUTSCHE LANDESBANK LONDON 03/08/2016 15.000.000,00 EUR 100,046 15.006.900,00 0,69 0,56



U.S.A.


7.500.000,00 EUR 100,054 7.504.863,54 0,34 0,28

JPMORGAN CHASE & CO 3E+35 0.557% 03/05/13-03/08/13

2.500.000,00 EUR 100,003 2.501.250,00 0,12 0,09


1.500.000,00 EUR 100,441 1.507.387,92 0,07 0,06

MORGAN STANLEY E3M +0.42 7/17 6.000.000,00 EUR 100,146 6.009.182,50 0,28 0,23


ABU DHABI COMMERCIAL BANK 03/02/2017 10.000.000,00 EUR 100,037 10.003.700,00 0,46 0,38

EMIRATES BANK INTL 03/08/2016 10.000.000,00 EUR 100,028 10.002.800,00 0,46 0,38

Corporate bonds

Belgium

ANHEUSER-BUSCH INBEV NV CP 29/09/2016 10.000.000,00 EUR 100,094 10.009.400,00 0,46 0,38

AQUAFIN 30/06/2016 4.000.000,00 EUR 100,052 4.002.080,00 0,18 0,15

BEFIMMO 03/05/2016 7.000.000,00 EUR 100,000 7.000.000,00 0,32 0,26

COFINIMMO 03/06/2016 2.000.000,00 EUR 100,018 2.000.360,00 0,09 0,08

COFINIMMO 28/02/2017 2.000.000,00 EUR 99,983 1.999.660,00 0,09 0,08

ENI FINANCE INTL SA 03/08/2016 12.500.000,00 EUR 100,029 12.503.625,00 0,57 0,47

LVMH FINANCE BELGIQUE SA 03/05/2016 5.000.000,00 EUR 100,000 5.000.000,00 0,23 0,19

173



France


1.500.000,00 EUR 100,078 1.501.221,04 0,07 0,06


6.000.000,00 EUR 100,082 6.005.039,00 0,28 0,23

IMERYS 03/08/2016 7.000.000,00 EUR 100,041 7.002.870,00 0,32 0,26

RCI BANQUE SA 03/08/2016 9.000.000,00 EUR 100,032 9.002.880,00 0,41 0,34

SUEZ 03/05/2016 6.000.000,00 EUR 100,000 6.000.000,00 0,28 0,23

SUEZ 04/05/2016 6.000.000,00 EUR 100,001 6.000.060,00 0,28 0,23

Germany

DAIMLER AG 03/11/2016 7.000.000,00 EUR 100,026 7.001.820,00 0,32 0,26

DAIMLER AG 04/05/2016 20.000.000,00 EUR 100,001 20.000.200,00 0,92 0,75

DAIMLER AG 07/10/2016 5.000.000,00 EUR 100,056 5.002.800,00 0,23 0,19

DAIMLER AG 3E+48 09/06/2016-09/03/2016 +0.273% 6.000.000,00 EUR 100,328 6.022.182,50 0,28 0,23


Ireland


Netherlands




Spain

ENAGAS 04/05/2016 7.500.000,00 EUR 100,001 7.500.075,00 0,34 0,28

ENAGAS 07/06/2016 7.000.000,00 EUR 100,024 7.001.680,00 0,32 0,26

SANTANDER CONSUMER FINANCE SA SANTAN FL 31/07/2017

10.000.000,00 EUR 99,925 9.992.909,99 0,46 0,38


Sweden

SCA FINANS AB 03/08/2016 2.500.000,00 EUR 100,032 2.500.800,00 0,12 0,09

SCA FINANS AB 20/06/2016 10.000.000,00 EUR 100,032 10.003.200,00 0,46 0,38

U.K.

AVIVA PLC 04/11/2016 5.000.000,00 EUR 100,012 5.000.600,00 0,23 0,19

HITACHI CAPITAL UK PLC 04/05/2016 5.000.000,00 EUR 100,001 5.000.050,00 0,23 0,19


U.S.A.

HONEYWELL INTERNATIONAL INC. 3E+50 22/05/2016-22/02/2016 +0.313%

3.000.000,00 EUR 100,427 3.014.661,92 0,14 0,11

JOHNSON CONTROLS 30/06/2016 12.500.000,00 EUR 100,009 12.501.125,00 0,57 0,47

TOYOTA MOTOR CREDIT CORP 3E+20 08/12/2015-09/09/2015 +0.167%

750.000,00 EUR 99,991 749.932,50 0,03 0,03

Total bonds 2.183.476.544,34 100,00 82,10



Demand accounts

Belgium



174

Term accounts

Belgium

KBC BANK NV KBCBANK 09/06 - 09/06/16 0.02% 60.000.000,00 EUR 100,036 60.021.600,00 2,26

KBC BANK NV 06/05/15-04/05/16 0.15% 9.000.000,00 EUR 100,001 9.000.090,00 0,34

KBC BANK NV 11/05/15-11/05/16 0.15% 14.000.000,00 EUR 100,011 14.001.540,00 0,53




Receivables

Belgium



Payables

Belgium


Payables -5.728.272,57 -0,22


OTHER

Accrued interest EUR 45.462,43 0,00



TOTAL OTHER -128.914,49 -0,01

TOTAL NET ASSETS 2.659.649.687,51 100,00

175


31/10/2014 30/04/2015 31/10/2015 30/04/2016

United Arab Emirates 3,21 0,00 0,74 0,92 Australia 7,69 3,22 0,19 1,61 Austria 3,20 0,00 0,07 0,00 Belgium 41,78 13,37 32,63 24,96 Canada 0,00 0,00 0,13 0,94 Switzerland 0,00 0,00 0,84 0,92 China 0,40 5,34 1,04 2,07 Germany 1,64 1,61 10,72 15,97 Denmark 2,00 0,00 0,52 1,36 Spain 0,00 9,35 0,95 3,54 France 28,09 34,23 35,77 25,44 U.K. 2,25 4,28 1,81 6,61 Ireland 0,00 5,35 0,00 0,09 Japan 0,00 0,00 0,22 0,00 South Korea 0,00 0,00 0,00 0,28 Luxembourg 1,60 2,67 0,56 2,76 Netherlands 2,73 7,22 11,00 9,11 Singapore 2,00 0,00 0,00 0,00 Sweden 0,00 2,67 0,63 0,94 U.S.A. 0,20 0,00 1,05 1,55 EU institutions outside BLEU terr. 3,21 10,69 1,13 0,93 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016



31/10/2014 30/04/2015 31/10/2015 30/04/2016

EUR 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00

176

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CASH 3 MONTH

DURATION (IN THE CURRENCY OF THE SUB-FUND)



1.797.093.457,20 3.335.504.219,03 2.563.234.274,84

Turnover rate -86,28 % 46,13 % -0,46 %



7.212.404.907,72 1.655.173.666,24 -10.418.524,20


-21,50 % 92,96 % 113,96 %

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%). Reason: cash building bloc for the cppi funds + target duration of 90 days 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.


Nil

177


VALUE

Classic Shares Change in number of shares in circulation: Nil Amounts received and paid by the UCI: Nil Net asset value: Nil




Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 1.394.819,80 1.278.531,04 134.312,77 134.312,77

2015 - 04* 1.039.993,00 1.129.769,19 44.536,57 44.536,57

2016 - 04* 8.074.433,08 5.445.916,15 2.673.053,50 2.673.053,50




Capitalization Distribution Capitalization Distribution 2014 - 04* 1.397.784.717,21 1.280.747.443,40

2015 - 04* 1.039.334.681,89 1.128.953.290,65

2016 - 04* 8.050.023.897,73 5.426.524.430,40





2015 - 04* 44.467.196,87 998,44


178


Classic Shares

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

Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228991392 EUR -0.35% 0.05% -0.29% 0.19% 25/11/2011 -0.11%


179

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








180

2.4.6 COSTS

Ongoing Charges: *

Classic Shares Capitalization: 0.000% Institutional B Shares Capitalization: 0.228% * The following are not included in the charges shown: entry and exit charges, performance fees, transaction costs paid when buying or selling assets, interest paid, payments made with a view to providing collateral in the context of derivative financial instruments, or commissions relating to Commission Sharing Agreements or similar fees received by the Management Company or any person associated with it.


Not applicable.





181


182


TABLE OF CONTENTS

2. Information on KBC Multi Interest EURO Medium


2.2. Balance sheet




183

184

2 INFORMATION ON KBC MULTI INTEREST EURO MEDIUM



Classic Shares : Launch date: 31 May 1999 Initial subscription price: 5000 DEM Currency: EUR Institutional B Shares : Launch date: 24 November 2011 Initial subscription price: 44.1 EUR Currency: EUR


Not applicable.










Derivatives may be used to achieve the investment objectives as well as to hedge in risks. It is possible to work with either listed or unlisted derivatives: these may be forward contracts, options or swaps on securities, indices, currencies or interest rates or other transactions involving derivatives. Unlisted derivatives transactions may only be concluded with prime financial institutions specialised in such transactions. Subject to the applicable laws and regulations and the articles of association, the sub-fund will always seek to conclude the most effective transactions. All costs associated with the transactions will be charged to the sub-fund and all income generated will be paid to the sub-fund. If the transactions result in a risk in respect of the counterparty, this risk can be hedged by using a margin management system that ensures that the sub-fund is the beneficiary of security (collateral) in the form of cash or investment grade bonds. When calculating the value of the bonds, a margin will be applied that varies depending on their residual term to maturity and the currency in which they are denominated. The relationship with the counterparty or counterparties is governed by standard international agreements.

185

The UCI may conclude contracts that relate to credit risk in respect of issuers of debt instruments. Credit risk is the risk that the issuer of the debt instrument will default. It relates to parties whose creditworthiness at the time the contract is concluded is equal to that of the issuers whose debt instruments the UCI holds directly. Derivatives can also be used to hedge the assets of the sub-fund against open exchange risks in relation to the currency. Where credit derivatives are used, they are permitted only in order to achieve the investment objectives and within the existing risk profile and may not result in a shift to less creditworthy debtors. Consequently there is no increase in the credit risk. Where derivatives are used, they must be easily transferable and liquid instruments. The use of derivatives does not, therefore, affect the liquidity risk. Furthermore, using derivatives does not affect the portfolio’s allocation across regions, industry sectors or themes. As a result, they have no effect on concentration risk. Derivatives are not used to protect capital, either fully or partially. They neither increase nor decrease capital risk. In addition, using derivatives has no effect on settlement risk, custody risk, exchange rate risk, flexibility risk, inflation risk or risk dependent on external factors.

STRATEGY SELECTED

The assets are invested primarily in financial instruments denominated in euros and at least 10% of the assets are invested in bonds denominated in euros. In addition, investments denominated in currencies other than the reference currency may be made when it is deemed that this will generate a higher investment result. Such investments are in principle hedged against exchange rate risks.


The assets are invested directly or indirectly in bonds and debt instruments issued by both companies and government bodies. The subfund invests directly and/or indirectly at least 75% of the in bonds and debt instruments invested assets in securities that have an investment grade (minimum BBB-/Baa3 long term, A3/F3/P3 short term) rating of at least one of the following rating agencies: • Moody’s (Moody’s Investors Service); • S&P (Standard & Poor’s, a Division of the McGraw-Hill Companies); • Fitch (Fitch Ratings). In addition, the subfund can invest up to 25% of the in bonds and debt instruments invested assets in securities that have a lower rating or for which no credit rating of any of the above mentioned agencies is available. All maturities are taken into consideration when selecting the bonds and debt instruments.





186










187

2.1.5 DISTRIBUTORS





In the first half of 2015, the Eurozone economy continued to improve thanks to the dramatic fall in oil prices starting in Q4 of 2014. European consumers received a major boost in purchasing power, propelling domestic demand and lifting the European economy into a higher gear of economic growth. But the summer months brought bad news with a series of very poor data coming out of China. The ongoing weakness in commodity prices is driving many EM economies into a severe recession. During the first quarter of 2016, the Eurozone economy posted better than expected growth figures (1.6 % on annual basis), outpacing the US and most other advanced economies. The European Central Bank continued to try to stimulate the European economy through cuts in interest rates but the big event certainly was the announcement in January 2015 that the ECB would start with the purchase of Government Bonds. This had major impact on the bond markets, driving yields lower across the board. The second package announced early December 2015 failed to boost sentiment but in March 2016 the ECB showed once again its ability to surprise investors with the announced package : a cut in the deposit rate, a higher purchase amount and last but not least including bonds issued by non-financial corporates. The short end of the market, where the compartment is invested, went into negative yield territory for more and more countries and was going deeper into negative territory in the case of the short dated core government bonds. Avoiding negative yields became very difficult and only so in the intermediate part of the peripheral curves. In Q2 2015 there was a brief uptick in the yields based a more favourable economic outlook and the forecast an imminent hike in US rates but the bond rally resumed in Q3, sending German 2 year yields to all time lows and even below the yield floor the ECB is using when purchasing bonds in the secondary market. During the second half of the reporting period, yields went further south with short dated German bonds reaching -0.5 % by the end of April 2016. Investment policy

The compartment maintained a neutral duration policy relative to the market. The focus was to look for extra yield as much as possible . This resulted in a strong overweight position of the peripheral countries like Spain, Italy and Ireland.

2.1.8 FUTURE POLICY

Despite the improvement in economic activity, the ECB will maintain its accommodative policy at the current level and the odds are certainly in favour of more stimulus by either pushing rates further down or an extension/expansion of the purchasing programs. The ECB will certainly monitor how the FED and the Bank of Japan will pursue their monetary policies, impacting the FX markets.



188

2.2 BALANCE SHEET



TOTAL NET ASSETS 64.910.108,21 88.596.409,88


A. Bonds and other debt instruments a) Bonds 63.443.228,72 86.996.329,14

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 2.603.201,06 3.151.815,40 B. Payables a) Accounts payable (-) -1.459.307,84 -2.076.169,81

V. Deposits and cash at bank and in hand A. Demand balances at banks 320.863,28 538.120,97



A. Capital 65.220.894,51 87.801.927,48

B. Income equalization -302.165,08 -188.470,58


189




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -1.597.981,71 -1.333.033,09 F. Derivative financial instruments a) Bonds Futures and forward contracts -3.866.125,00 l) Financial indices Futures and forward contracts 3.868.025,00 H. Foreign exchange positions and transactions b) Other foreign exchange positions and


Det.section I gains and losses on investments Realised gains on investments 31.415,99 578.151,41 Unrealised gains on investments -14.097,17 -4.565.128,29 Realised losses on investments -1.709.590,45 -1.088.565,44 Unrealised losses on investments 94.285,10 3.744.424,76

II. Investment income and expenses B. Interests a) Securities and money market instruments 1.963.159,53 2.784.324,50 b) Cash at bank and in hand and deposits 84,95 873,57 C. Interest on borrowings (-) -0,85 -129,91



4.199,12 6.229,92

190

IV. Operating expenses A. Investment transaction and delivery costs (-) -397,34 B. Financial expenses (-) -50,72 -445,29 C. Custodian's fee (-) -17.587,10 -18.829,94 D. Manager's fee (-) a) Financial management Classic Shares -138.250,50 -163.611,25 Institutional B Shares -167.727,03 -216.269,82 b) Administration and accounting management -38.247,00 -47.484,96 E. Administrative expenses (-) -61,07 -92,17 F. Formation and organisation expenses (-) -2.981,31 -3.378,37 G. Remuneration, social security charges and

pension -40,86 -121,51

H. Services and sundry goods (-) -3.721,83 -5.151,41 J. Taxes Classic Shares -5.117,60 -6.134,55 Institutional B Shares -3.658,15 -4.612,91 K. Other expenses (-) -634,27 -10.698,02




191



I. Profit to be appropriated -310.786,30 794.482,40 Profit for the period available for appropriation -8.621,22 982.952,98 Income on the creation of shares (income on the

cancellation of shares) -302.165,08 -188.470,58

II. (Appropriations to) Deductions from capital 310.786,30 -780.181,46

IV. (Dividends to be paid out) -14.300,94

192


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST EURO MEDIUM


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Austria

AUSTRIA 03/18 4.65% 15/01 200.000,00 EUR 108,718 220.206,17 0,35 0,34

AUSTRIA 07/17 4.30 15/09 100.000,00 EUR 106,541 109.254,93 0,17 0,17

AUSTRIA 13/18 1.15% 27/09 19/10 800.000,00 EUR 103,830 835.588,87 1,32 1,29

Belgium

BELGIUM 02/17 5.5% 28/09 100.000,00 EUR 108,419 111.694,59 0,18 0,17

BELGIUM 08/18 4% 28/03 1.000.000,00 EUR 108,507 1.089.011,46 1,72 1,68

BELGIUM 11/17 3.50% 28/06 75.000,00 EUR 104,596 80.670,08 0,13 0,12

BELGIUM 13/18 1.25% 22/06 1.000.000,00 EUR 103,607 1.046.862,35 1,65 1,61

France





FRENCH REPUBLIC 12/18 1.00% 25/11 25/11 250.000,00 EUR 103,531 259.920,40 0,41 0,40


Germany

FEDERAL REPUBLIC OF GERMANY 08/18 4.25% 04/07

800.000,00 EUR 110,332 910.897,44 1,44 1,40


1.200.000,00 EUR 111,369 1.351.177,60 2,13 2,08

FEDERAL REPUBLIC OF GERMANY 12/17 0.5% 13/10 5.000.000,00 EUR 101,422 5.084.978,62 8,02 7,83


1.000.000,00 EUR 101,785 1.018.806,28 1,61 1,57


2.300.000,00 EUR 101,435 2.333.320,07 3,68 3,60

FEDERAL REPUBLIC OF GERMANY 14/19 0.50% 12/04 12/04

1.400.000,00 EUR 102,855 1.440.370,99 2,27 2,22

Ireland

IRELAND 07/18 4.50 18/10 2.300.000,00 EUR 111,815 2.627.736,80 4,14 4,05

IRELAND 12/17 5.50% 18/10 18/10 1.450.000,00 EUR 108,552 1.617.147,44 2,55 2,49

Italy

REPUBLIC OF ITALY 08/19 4.50% 01/03-09 3.000.000,00 EUR 112,548 3.399.741,37 5,36 5,24

REPUBLIC OF ITALY 12/17 3.50% 01/05 1.650.000,00 EUR 105,304 1.737.832,44 2,74 2,68

REPUBLIC OF ITALY 13/18 3.50% 01/06-01/12 5.650.000,00 EUR 107,296 6.145.430,28 9,69 9,47

REPUBLIC OF ITALY 13/18 3.50% 02/09 01/12 2.000.000,00 EUR 108,984 2.209.133,55 3,48 3,40

REPUBLIC OF ITALY 14/18 +0.75% 15/01 15/01 4.000.000,00 EUR 101,355 4.063.134,42 6,40 6,26

Netherlands

NETHERLANDS 08/18 4.00% 07/15 2.000.000,00 EUR 109,823 2.260.493,71 3,56 3,48

NETHERLANDS 15/18 0.00% 1.000.000,00 EUR 100,875 1.008.750,00 1,59 1,55

Spain

SPAIN 08/18 4.10% 30/07 2.000.000,00 EUR 109,340 2.249.084,00 3,55 3,47

193

SPAIN 12/18 4.5% 31/1 3.000.000,00 EUR 107,973 3.273.504,53 5,16 5,04

SPAIN 13/18 3.75% 31/10 1.300.000,00 EUR 109,471 1.447.764,39 2,28 2,23

SPAIN 14/17 +0.50% 31/10 31/10 900.000,00 EUR 100,870 910.104,59 1,44 1,40

SPAIN 15/18 +0.25% 26/05 30/04 3.300.000,00 EUR 100,623 3.320.626,81 5,23 5,12

Total bonds 63.443.228,72 100,00 97,74



Demand accounts

Belgium

KBC GROUP CAD 99,61 CAD 1,000 69,43






Receivables

Belgium



Payables

Belgium


Payables -1.459.307,84 -2,25


OTHER

Interest receivable EUR 7.684,93 0,01



TOTAL OTHER 2.122,99 0,00

TOTAL NET ASSETS 64.910.108,21 100,00

194


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Austria 2,80 2,19 1,05 1,84 Belgium 4,52 3,79 3,31 3,68 Germany 19,30 19,45 16,68 19,24 Spain 17,23 18,56 19,41 17,64 Finland 1,76 0,00 0,00 0,00 France 22,68 16,91 19,18 18,18 Ireland 0,00 5,61 8,80 6,60 Italy 23,88 27,49 26,24 27,72 Netherlands 7,83 6,00 5,33 5,10 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Governm. 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

EUR 100,00 100,00 100,00 100,00 Total 100,00 100,00 100,00 100,00

195

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST EURO MEDIUM

(IN THE CURRENCY OF THE SUB-FUND)


Purchases 31.763.107,93 23.014.099,90 54.777.207,83 Sales 39.843.322,17 37.641.641,47 77.484.963,64 Total 1 71.606.430,10 60.655.741,37 132.262.171,47 Subscriptions 2.440.339,32 1.208.008,84 3.648.348,16 Redemptions 13.608.620,17 13.391.122,76 26.999.742,93 Total 2 16.048.959,49 14.599.131,60 30.648.091,09 Monthly average of total assets

81.764.254,26 70.871.347,16 76.339.499,73

Turnover rate 67,95 % 64,99 % 133,11 %


Purchases 31.763.107,93 23.014.099,90 54.777.207,83 Sales 39.843.322,17 37.641.641,47 77.484.963,64 Total 1 71.606.430,10 60.655.741,37 132.262.171,47 Subscriptions 2.440.339,32 1.208.008,84 3.648.348,16 Redemptions 13.608.620,17 13.391.122,76 26.999.742,93 Total 2 16.048.959,49 14.599.131,60 30.648.091,09 Monthly average of total assets

83.192.283,26 68.777.136,97 74.109.734,58


66,78 % 66,96 % 137,11 %

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%). Reason: short duration fund with significant monthly benchmark reset 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.


Nil

196


VALUE

Classic Shares



Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 227.919,14 8.000,00 249.002,39 3.266,00 772.875,64 136.567,43 909.443,07

2015 - 04* 187.358,94 29.615,00 204.045,40 23.173,00 756.189,18 143.009,43 899.198,61

2016 - 04* 42.360,88 22.000,39 242.658,76 5.185,82 555.891,31 159.824,00 715.715,31




Capitalization Distribution Capitalization Distribution 2014 - 04* 10.598.286,38 200.080,00 11.568.064,17 81.886,20

2015 - 04* 8.885.259,74 742.456,31 9.679.693,23 583.256,81

2016 - 04* 2.015.700,02 552.429,91 11.546.936,23 130.123,19




Capitalization Distribution 2014 - 04* 39.848.797,44 47,12 25,11

2015 - 04* 39.603.200,33 47,61 25,16


197




Cap. Dis. Cap. Dis. Cap. Dis. Total 2014 - 04* 11.815,00 252.093,00 1.154.110,00 1.154.110,00

2015 - 04* 126.197,00 251.980,45 1.028.326,55 1.028.326,55

2016 - 04* 23.558,00 329.120,00 722.764,55 722.764,55




Capitalization Distribution Capitalization Distribution 2014 - 04* 546.341,25 11.727.243,05

2015 - 04* 5.973.600,04 11.967.034,08

2016 - 04* 1.122.082,34 15.674.549,92




Capitalization Distribution 2014 - 04* 54.417.909,63 47,15

2015 - 04* 48.993.209,55 47,64

2016 - 04* 34.437.406,43 47,65 * The financial year does not coincide with the calender year.

198


Classic Shares

Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE0171263586 EUR 0.02% 0.46% 0.96% 1.14% 1.89% 2.25% 2.12% 30/08/1994 2.84%

DIV BE0171262570 EUR -0.08% 0.46% 0.85% 1.14% 1.79% 2.25% 2.07% 26/04/1995 2.60%


199


Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6228911564 EUR 0.02% 0.46% 0.96% 1.14% 24/11/2011 1.76%


200

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 DEM). The return is calculated as the change in the net asset value between two dates expressed












201

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








202

2.4.6 COSTS

Ongoing Charges: *



Not applicable.





203


204


TABLE OF CONTENTS

2. Information on KBC Multi Interest Currencies


2.2. Balance sheet




205

206

2 INFORMATION ON KBC MULTI INTEREST CURRENCIES



Classic Shares : Launch date: 29 September 2014 Initial subscription price: 1000 EUR Currency: EUR Institutional B Shares : Launch date: 29 September 2014 Initial subscription price: 1000 EUR Currency: EUR


Not applicable.



The main objective of this sub-fund is to generate the highest possible return for its shareholders by investing directly or indirectly in money market instruments, deposits and 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 money market instruments and deposits.








207


Strategy selected The sub-fund’s assets are invested primarily in bonds, debt instruments, money market instruments and/or time deposits denominated in currencies that offer a rate of return that is significantly higher than that offered by the euro. Currencies that generate a rate of return that is at least 0.5% higher than the return on short-term bonds issued by the Federal Republic of Germany can be regarded as currencies with a high interest yield. For reasons of cost efficiency, liquidity, risk diversification and/or if local laws and regulations prohibit direct investment in such financial instruments or make such investments too difficult to carry out in practice, the manager can also opt to increase exposure to currencies with a higher interest yield by means of a combination of forward contracts relative to those currencies, on the one hand, and bonds, debt instruments, money market instruments and/or time deposits denominated in strong currencies such as the euro or the US dollar, on the other. This way, a position is technically achieved that is equivalent to a direct investment in bonds, debt instruments, money market instruments and/or time deposits denominated in currencies with a significantly higher interest yield than the euro. The portfolio has a duration of up to 1 year. The investor assumes the full risk attached to this portfolio of bonds, debt instruments, money market instruments and/or time deposits. This means, amongst other things, that the return and/or the redemption price will be determined not only by movements in interest rates and the credit risk of the bonds, debt instruments, money market instruments and time deposits, but also by changes in the value of the currency of the bonds debt instruments, money market instruments and time deposits against the euro and by the gain or loss realised by the sub-fund on the aforementioned forward currency contracts. The remaining assets can be invested in securities, money market instruments, units in collective investment undertakings, deposits, financial derivatives, liquid assets and all other instruments insofar as and to the extent permitted by the applicable laws and regulations and consistent with the object referred to in 2.1. Characteristics of the bonds and debt instruments

Bonds, debt instruments and money market instruments issued by governments, government institutions, supranational institutions and companies are all eligible for inclusion in the sub-fund. The sub-fund invests directly and/or indirectly at least 70% of its assets in bonds, debt instruments and money market instruments that have an investment grade rating (long-term of at least BBB-/Baa3 and short-term of at least A3/F3/P3) or whose issuer has an investment grade rating issued by at least one of the following rating agencies:

• Moody’s (Moody’s Investors Service); • S&P (Standard & Poor’s, a Division of the McGraw-Hill Companies); • Fitch (Fitch Ratings).

In addition, the sub-fund may invest up to 30% of the assets in bonds, debt instruments and money market instruments:

• that have a lower credit rating or for which no credit rating is available from any of the above rating agencies;

• whose issuer has a lower credit rating or for which no credit rating is available from any of the above rating agencies.

Only remaining terms to maturity of less than three years are taken into consideration when selecting the bonds and debt instruments. Derogation for investments in public issuers: The sub-fund has been granted a derogation to invest up to 100% of its assets in various issues of securities and money market instruments that are issued or guaranteed by a Member State of the European Economic Area, by its local authorities, by a state that is not a Member State of the European Economic Area, or by public international institutions in which one or more Member States of the European Economic Area participate, insofar as the investments are made in at least six such issues and the investment in a single issue does not exceed 30% of the assets. The sub-fund may invest more than 35% of its assets in securities or money market instruments of: – the United States of America, Belgium, Germany, Finland, France, the Netherlands and Austria.

208

The sub-fund will only use this derogation for the above names if (at the time of derogation) they have a long-term rating of at least AA/Aa2 from at least one of the following rating agencies: Moody's (Moody's Investor Service), S&P (Standard & Poor's, a Division of the McGraw-Hill Companies), Fitch (Fitch Ratings). Moreover, the sub-fund will always be invested in securities from at least eight different issues at such times.









Reinvesting in this way can eliminate the credit risk to which the sub-fund is exposed concerning the

collateral in respect of the financial institution where the cash account is held, but there is still a credit risk

in respect of the issuer or issuers of the debt instrument or instruments. The management company may

delegate implementation of the reinvestment policy to a third party, including the agent managing the

securities lending system.

209

By lending securities, the sub-fund can generate additional income, which might consist of a fee paid by the principal or (if the sub-fund uses an agent) the counterparty to the management company as well as income generated through reinvestments. After deducting the direct and indirect charges – set at a flat rate of 35% of the fee received and consisting of the charges for the clearing services provided by KBC Bank NV, the charges paid to the management company for setting up and monitoring the system for lending securities, the charges for margin management, the charges associated with cash and custody accounts and cash and securities transactions, the fee paid for any management of reinvestments and, if the sub-fund uses an agent, the fee paid to the agent – this income is paid to the sub-fund. The relationship with the counterparty or counterparties is governed by standard international agreements.


Social, ethical and environmental aspects: Investments may not be made in financial instruments issued by - manufacturers of controversial weapons whose use over the past five decades, according to international consensus, has led to disproportionate human suffering among the civilian population. This involves the manufacturers of anti-personnel mines, cluster bombs and munitions and weapons containing depleted uranium. - companies that do not have an anti-corruption policy and that have been given a negative score in a thorough screening for corruption in the last two years. A company has no anti-corruption policy if it cannot be demonstrated that it has an acceptable policy concerning the fight against corruption. An acceptable policy should be made public and must at least state that bribery will not be tolerated and that the law will be followed in this respect. The screening will be based on a generally accepted and independent 'Social, ethical and environmental factors' database. In this way, not only is a purely financial reality represented, but also the social reality of the sector or region. Where relevant, please refer to 'Information concerning the Bevek – Tax treatment' in the prospectus to find out more about the application of European and Belgian tax provisions.



2.1.5 DISTRIBUTORS




210


The sub fund Multi Interest Currencies invests primarily in bonds and debt instruments with maximum maturity of 2 years, denominated in currencies with a yield at least 0.5% higher than the yield on bonds issued by the Federal Republic of Germany. In the first half of 2015, the Eurozone economy continued to improve thanks to the dramatic fall in oil prices starting in Q4 of 2014. European consumers received a major boost in purchasing power, propelling domestic demand and lifting the European economy into a higher gear of economic growth. But the summer months brought bad news with a series of very poor data coming out of China. The ongoing weakness in commodity prices is driving many EM economies into a severe recession. In the run-up to December, the anticipation on a further easing of monetary policy in the euro area and a first rate hike in the US pushed the Eurodollar exchange rate to the recent lows at around 1.05. The decision of the ECB not to increase the monthly purchases of its QE programme in December however disappointed investors and resulted in some strengthening of the euro. Although the ECB in the end increased its monthly purchase programme in March, the more dovish stance of the Federal Reserve following its first rate hike in December weighed also on the US dollar performance. Other currencies included in the sub fund also disappointed with the British pound, Canadian dollar, Norwegian Krone, Thai Baht, Chinese Renminbi and Indian rupee also depreciating against the euro over the reporting period. The depreciation of the currencies vs. the euro was however only partly offset by a further decline in bond yields due to the short duration of the fund.

2.1.8 FUTURE POLICY

Over the reporting period, the sub fund had a negative performance. Looking forward, the sub fund should benefit from the continuation of the ECB unconventional monetary policy measures. This still supports currency diversification away from the euro. The same is true for the yield contribution, as the yield difference between the often negative European government bond yields and emerging market bond yields is still at very elevated levels.



211

2.2 BALANCE SHEET



TOTAL NET ASSETS 303.130.560,52 620.860.636,11


A. Bonds and other debt instruments a) Bonds 120.348.649,92 476.915.561,38 B. Money market instruments 171.607.956,90 129.949.156,33 F. Derivative financial instruments j) Foreign exchange Futures and forward contracts (+/-) -24.050,76 -1.299.925,99

IV. Receivables and payables within one year A. Receivables a) Accounts receivable 10.064.363,33 2.823.926,91 B. Payables a) Accounts payable (-) -10.214.168,32 -1.076.482,98 c) Borrowings (-) -10.056.093,97


VI. Accruals and deferrals A. Expense to be carried forward 34.533,95 65.843,56 C. Accrued expense (-) -47.847,08 -114.250,29


A. Capital 348.950.153,98 589.421.495,22

B. Income equalization -1.836.592,25 2.213.443,97




III.A Purchased futures and forward contracts 2.692.152,38 61.915.900,12

212




I. Net gains(losses) on investments A. Bonds and other debt instruments a) Bonds -8.224.742,68 -3.861.011,91 B. Money market instruments -3.142.230,04 25.967.686,61 H. Foreign exchange positions and transactions a) Derivative financial instruments Futures and forward contracts 1.275.875,20 -1.299.925,99 b) Other foreign exchange positions and

transactions -47.233.261,53 -3.441.612,52

Det.section I gains and losses on investments Realised gains on investments 44.670.972,65 20.873.932,08 Unrealised gains on investments -102.623.380,10 107.521.849,37 Realised losses on investments -88.681.141,95 -12.194.592,56 Unrealised losses on investments 89.309.190,35 -98.836.052,70

II. Investment income and expenses A. Dividends 897,80 B. Interests a) Securities and money market instruments 14.145.706,68 13.702.741,47 b) Cash at bank and in hand and deposits 76.816,52 26.238,58 C. Interest on borrowings (-) -3.096,57 -390,48



1.373.649,17 397.718,81

IV. Operating expenses A. Investment transaction and delivery costs (-) -12.223,63 -447.557,04 B. Financial expenses (-) -430,97 -527,94 C. Custodian's fee (-) -81.131,28 -26.947,51 D. Manager's fee (-) a) Financial management Classic Shares -43.204,97 -17.721,18 Institutional B Shares -1.770.413,76 -1.499.983,36 b) Administration and accounting management -181.361,40 -151.769,47 E. Administrative expenses (-) -558,49 F. Formation and organisation expenses (-) -2.648,12 -8.180,78 G. Remuneration, social security charges and

pension -301,12

H. Services and sundry goods (-) -4.048,38 -2.879,43 J. Taxes Classic Shares -6.952,29 -6.592,56 Institutional B Shares -14.191,47 -68.856,48 K. Other expenses (-) -135.149,94 -34.731,90




213




cancellation of shares) -1.836.592,25 2.213.443,97



214


2.4.1 COMPOSITIONS OF THE ASSETS OF KBC MULTI INTEREST CURRENCIES


Cur rency

Price in currency


sub-fund)

% owned by

UCI

% portfolio

% Net

assets

NET ASSETS


Bonds

Government bonds

Canada

CANADA 14/17 1.25% 01/08 01/02 6.300.000,00 CAD 100,748 4.437.937,88 1,52 1,46

China

CHINA 1.4% 18/08 18/02 112.500.000,00 CNY 99,512 15.117.090,36 5,18 4,99

CHINA 13/16 2.6% 23/05-11 48.500.000,00 CNY 99,736 6.588.809,95 2,26 2,17

Hungary

REPUBLIC OF HUNGARY 06/17 +6.75% 24/02 24/02 7.200.000.000,00 HUF 104,702 24.484.699,63 8,40 8,08

REPUBLIC OF HUNGARY 13/16 +5.50% 22/12 22/12 1.500.000.000,00 HUF 102,842 5.046.399,60 1,73 1,67

Indonesia

REPUBLIC OF INDONESIA 05/17 +10.00% 15/07 15/07 50.000.000.000,00 IDR 103,886 3.537.399,85 1,21 1,17

REPUBLIC OF INDONESIA 10/16 7.375% 15/03 15/03 14.000.000.000,00 IDR 100,514 940.792,03 0,32 0,31

REPUBLIC OF INDONESIA 11/17 +6.25% 15/04 15/04 80.000.000.000,00 IDR 99,733 5.298.477,66 1,82 1,75

Israel

STATE OF ISRAEL 14/17 +1.25% 31/10 31/10 35.000.000,00 ILS 102,290 8.374.521,94 2,87 2,76

Italy

REPUBLIC OF ITALY 14/16 +1.50% 15/06 15/06 3.000.000,00 EUR 101,035 3.048.263,11 1,04 1,01

Malaysia

FEDERATION OF MALAYSIA 10/17 4.012% 15/09 15/09

4.000.000,00 MYR 101,558 912.738,06 0,31 0,30

Norway

NORWAY 06/17 4.25% 19/05 100.000.000,00 NOK 103,838 11.700.777,14 4,01 3,86

Poland

POLAND 06/17 5.25% 25/10 67.000.000,00 PLN 105,555 16.584.568,04 5,68 5,47

POLAND 11/16 4.75% 25/10 53.000.000,00 PLN 101,583 12.606.346,81 4,32 4,16

Romania

ROMANIA 11/17 5.9% 26/07 53.000.000,00 RON 106,082 13.080.960,19 4,48 4,32

ROMANIA 12/16 4.75% 29/08 29/08 55.000.000,00 RON 101,361 12.832.422,77 4,40 4,23

South Korea

REPUBLIC OF KOREA 12/17 0.00% 7.000.000.000,00 KRW 102,218 5.482.915,84 1,88 1,81

REPUBLIC OF KOREA 12/17 2.75% 10/9 15.500.000.000,00 KRW 102,119 12.128.983,68 4,16 4,00

REPUBLIC OF KOREA 13/16 +3.00% 10/06 10/12 4.000.000.000,00 KRW 102,088 3.129.110,12 1,07 1,03

REPUBLIC OF KOREA 14/17 +2.75% 10/06 10/12 3.800.000.000,00 KRW 102,491 2.984.389,39 1,02 0,99

Spain

SPAIN 06/17 3.80% 31/01 3.000.000,00 EUR 102,977 3.118.277,14 1,07 1,03

Thailand

KINGDOM OF THAILAND 09/16 +4.125% 18/11 18/05 190.000.000,00 THB 101,463 4.908.269,40 1,68 1,62

215

KINGDOM OF THAILAND 10/17 2.8% 10/10 200.000.000,00 THB 101,947 5.105.265,73 1,75 1,68

KINGDOM OF THAILAND 11/17 3.25% 16/06 16/12 770.000.000,00 THB 102,127 19.894.167,99 6,82 6,56

U.K.

UNITED KINGDOM 06/16 4% 07/09-03 10.500.000,00 GBP 101,240 13.679.228,85 4,69 4,51

UNITED KINGDOM 12/17 +1.00% 07/09 07/03 11.800.000,00 GBP 100,698 15.220.349,65 5,21 5,02

U.S.A.

UNITED STATES OF AMERICA 12/17 +1.00% 30/09 31/03

22.000.000,00 USD 100,391 19.301.026,44 6,61 6,37

UNITED STATES OF AMERICA 14/16 +0.625% 31/12 30/06

12.000.000,00 USD 100,078 10.507.696,11 3,60 3,47

Bonds issued by international institutions


EUR. INV. BANK 08/17 +5.25% 02/10 02/10 56.500.000,00 NOK 105,938 6.677.979,42 2,29 2,20

EUR. INV. BANK 11/16 +3.00% 16/09 16/09 95.000.000,00 NOK 100,689 10.565.778,49 3,62 3,49

INTERNATIONAL FINANCE CORP 14/17 2.00% 26/06-26/12

10.000.000,00 CNY 98,522 1.336.055,60 0,46 0,44


Germany

KFW 14/16 +1.375% 12/05 12/11 24.000.000,00 CNY 99,971 3.251.575,46 1,11 1,07

Israel

STATE OF ISRAEL 12/18 4% 40.000.000,00 ILS 107,660 10.073.332,47 3,45 3,32

Total bonds 291.956.606,80 100,01 96,31

Forward contracts EUR -24.050,76 -0,01



Demand accounts

Belgium

KBC GROUP AUD 31.203,79 AUD 1,000 20.791,44 0,01

KBC GROUP CAD 3.071.930,02 CAD 1,000 2.141.240,04 0,71


KBC GROUP GBP 91.858,74 GBP 1,000 117.481,44 0,04

KBC GROUP HUF 4.928.342,94 HUF 1,000 15.814,73 0,01

KBC GROUP ILS -42.990.304,51 ILS 1,000 -10.056.093,97 -3,32

KBC GROUP NOK 571.738,45 NOK 1,000 61.992,19 0,02

KBC GROUP NZD 43.239,96 NZD 1,000 26.398,02 0,01

KBC GROUP PLN 10.834,00 PLN 1,000 2.476,34 0,00

KBC GROUP RON 14.871.842,27 RON 1,000 3.317.904,26 1,10

KBC GROUP TRY 18.104,70 TRY 1,000 5.656,92 0,00

KBC GROUP USD 151.627,39 USD 1,000 132.385,20 0,04

KBC GROUP ZAR 733.267,60 ZAR 1,000 45.146,66 0,02




Receivables

Belgium

KBC GROUP EUR RECEIVABLE 6.001,44 EUR 1,000 6.001,44 0,00

KBC GROUP ILS TE ONTVANGEN 43.000.000,00 ILS 1,000 10.058.361,89 3,32


216

Payables

Belgium


Payables -10.214.168,32 -3,37

TOTAL RECEIVABLES AND PAYABLES -149.804,99 -0,05

OTHER

Interest receivable EUR 0,00



TOTAL OTHER -13.313,13 0,00

TOTAL NET ASSETS 303.130.560,52 100,00

217


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Australia 5,69 6,14 3,34 0,00 Belgium 0,13 -0,20 0,00 -0,01 Brazil 0,00 7,74 0,00 0,00 Canada 8,98 6,14 5,71 1,53 China 5,24 4,73 6,86 7,49 Germany 4,45 2,27 4,42 1,12 Spain 0,00 2,33 2,94 1,07 France 4,93 3,53 0,00 0,00 U.K. 10,13 9,93 10,10 9,99 Hungary 4,22 6,13 9,74 10,11 Indonesia 1,51 3,52 3,20 3,35 Israel 0,00 0,00 0,00 6,40 Italy 0,00 2,06 2,32 1,05 South Korea 0,81 1,11 7,72 8,23 Malaysia 7,12 0,74 0,60 0,31 Norway 9,60 9,85 0,79 3,91 New Zealand 5,14 0,00 0,00 0,00 Poland 9,89 10,21 10,14 9,88 Romania 9,69 9,95 9,92 8,67 Thailand 9,07 6,52 9,96 10,26 Turkey 2,97 4,47 4,42 0,00 U.S.A. 0,00 0,00 0,00 10,33 EU institutions outside BLEU terr. 0,43 0,00 7,82 6,31 South Africa 0,00 2,83 0,00 0,00 Total 100,00 100,00 100,00 100,00


31/10/2014 30/04/2015 31/10/2015 30/04/2016

Financials 1,73 0,52 7,74 1,83 Governm. 98,27 99,48 92,26 98,17 Total 100,00 100,00 100,00 100,00

218


31/10/2014 30/04/2015 31/10/2015 30/04/2016

AUD 5,61 6,12 3,38 0,01 BRL 0,42 7,55 0,00 0,00 CAD 8,83 5,99 5,67 2,19 CNH 3,85 2,35 0,00 0,90 CNY 5,93 5,23 9,86 8,73 EUR 1,02 0,69 0,86 2,92 GBP 9,92 10,11 9,98 9,65 HUF 9,61 9,76 9,58 9,74 IDR 1,48 3,43 3,14 3,22 ILS 0,00 0,00 0,00 6,16 KRW 0,00 0,46 7,60 7,92 MYR 6,98 0,72 0,59 0,30 NOK 9,43 9,61 9,71 9,41 NZD 5,05 4,02 5,29 0,01 PLN 9,71 10,11 9,98 9,51 RON 9,64 10,11 9,81 9,45 THB 8,88 6,35 9,80 9,87 TRY 2,94 4,37 4,56 0,00 USD 0,70 0,06 0,17 9,99 ZAR 0,00 2,96 0,02 0,02 Total 100,00 100,00 100,00 100,00

219

2.4.2 CHANGES IN THE COMPOSITION OF THE ASSETS OF KBC MULTI INTEREST CURRENCIES (IN



Purchases 348.944.436,00 310.371.536,24 659.315.972,23 Sales 681.761.586,45 299.559.537,92 981.321.124,37 Total 1 1.030.706.022,44 609.931.074,16 1.640.637.096,60 Subscriptions 289.890.876,59 311.631.628,15 601.522.504,74 Redemptions 577.745.422,45 293.923.235,32 871.668.657,77 Total 2 867.636.299,04 605.554.863,47 1.473.191.162,51 Monthly average of total assets

460.183.472,15 258.176.397,50 359.582.339,36

Turnover rate 35,44 % 1,70 % 46,57 %


Purchases 348.944.436,00 310.371.536,24 659.315.972,23 Sales 681.761.586,45 299.559.537,92 981.321.124,37 Total 1 1.030.706.022,44 609.931.074,16 1.640.637.096,60 Subscriptions 289.890.876,59 311.631.628,15 601.522.504,74 Redemptions 577.745.422,45 293.923.235,32 871.668.657,77 Total 2 867.636.299,04 605.554.863,47 1.473.191.162,51 Monthly average of total assets

416.419.109,82 40.682.445,71 261.356.580,65


39,16 % 10,76 % 64,07 %

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%). Reason: cash building bloc for the cppi funds + max duration of 1 year 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.


NAME Currency

Value in

currency


Lot-size

Transaction

date

KBC AK-VK CNH-EUR 160525-160428 7.374215

CNH 20.000.000,00 2.692.152,38 N/A 26.04.2016

220


VALUE

Classic Shares



Cap. Dis. Cap. Dis. Cap. Dis. Total 2015 - 04* 877,24 9.048,75 32,00 935,00 845,24 8.113,75 8.958,99

2016 - 04* 491,70 4.249,00 702,72 4.992,00 634,23 7.370,75 8.004,98




Capitalization Distribution Capitalization Distribution 2015 - 04* 880.102,26 9.280.558,29 34.242,24 995.091,65

2016 - 04* 508.990,30 4.424.039,18 721.782,68 5.025.671,95






221




Cap. Dis. Cap. Dis. Cap. Dis. Total 2015 - 04* 716.550,00 139.951,00 576.599,00 576.599,00

2016 - 04* 601.504,13 880.923,00 297.180,13 297.180,13




Capitalization Distribution Capitalization Distribution 2015 - 04* 724.240.244,28 141.736.631,75

2016 - 04* 609.667.382,41 882.451.104,38





2016 - 04* 295.286.528,16 993,63 * The financial year does not coincide with the calender year.

222


Classic Shares

Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6270378076 EUR -6.35% 29/09/2014 -0.52%

DIV BE6270381104 EUR -6.37% 29/09/2014 -0.55%


223


Cap Div

ISIN code Cur-

rency


Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Share classes

Bench mark

Launch Date

Share classes

CAP BE6270382110 EUR -6.29% 29/09/2014 -0.40%


224

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












225

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








Dividend on ex-dividend date 29/07/2016: 7.6285 EUR net (10.4500 EUR gross). In accordance with the Royal Decree of 10 November 2006 on the accounting and the annual accounts of certain public collective investment undertakings, investors are informed that the General Meeting of the fund will decide to pay a dividend despite the fact that a negative ‘result available for appropriation’ was recorded for the corresponding financial year. Investors are also informed that the dividend to be paid stems directly from the interest, dividends and realised capital gains received from the investments made during the financial year corresponding to the dividend to be paid out.

2.4.6 COSTS

Ongoing Charges: *



Not applicable.



226



227

Documents

KBC Multi Interest - TeleTrader.com · KBC Multi Interest . Public open-ended investment company under Belgian law (bevek) with a variable number of units/shares opting for Investments