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What is the exchange traded product:

tRACER Long?

The KBC IFIMA (LUX) tRACER Long (“tRACER Long”) is a capital and credit risk-bearing structured security under English law (for more information about the risks, see “Main Risks”). The tRACER Long potentially entitles you to a sum of money at maturity calculated on the basis of the end value of the underlying investment. We distinguish between two cases:
  1. If the end value of the underlying is lower than or equal to the reference level:
    • Value of tRACER Long = end value of underlying
  2. If the end value of the underlying is higher than the reference level:
    • Value of tRACER Long = reference level + leverage * (end value of underlying - reference level)
The investor is therefore expecting a potential increase in the value of the underlying. KBC IFIMA can offer you a limited leverage if the end value of the underlying is higher than the reference level, as you do not receive any dividends on the underlying during the term of the investment. NB: the amount to be paid depends on the performance of the underlying: it is therefore possible that you will lose all or part of your invested capital.

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The
tRACER
Long...

... is a listed leverage product with a maximum term of two years
... will always be issued in euros
... can have a share, index or ETF
ETF is short for “Exchange Traded Fund”
as underlying
... investor risks losing their entire invested capital
... will be listed on Euronext Brussels, although this is not a guarantee that an active market will develop
... investor expects a potential increase in the underlying
... cannot be converted under any circumstances into the underlying
... is available for you to purchase via your own bank or broker

You can find general information about the costs, risks, potential returns and functioning of the tRACER Long here:

Brochure

Thinking about investing in a tRACER Long? We ask you to read the following documents thoroughly before taking an investment decision: the base prospectus under English law, the final terms, the summary and the Key Information Document, which can also be found on the detailed page for the specific tRACER Long and on www.kbc.com. Investors can check the price of the tRACER Long via the Euronext website.

tRACER Long

Costs & Complaints

In addition to the management fee for the tRACER Long, which is incorporated in the market price and may not exceed 1% of the issue price annually, you have to pay transaction charges to your bank or broker on purchase or sale. The tax on stock market transactions applies to purchases and sales on the secondary market. This amounts to 0.35%, with a maximum of 1 600 euros. The tRACER Long is not subject to withholding tax. You can find more information regarding the costs on page 8 of the brochure; all charges for securities transactions applying at KBC Bank NV can be consulted here.

Any complaints can be reported here. Questions about how the product works can be e-mailed to kbc.tracer@kbc.be

tRACER Long

Main Risks

  1. Risk of capital loss: The tRACER Long investor runs the risk of losing their entire invested capital, both during the term of the investment and at maturity
  2. Credit Risk: In the event of bankruptcy or the risk of bankruptcy on the part of the issuer or the guarantor, the investor runs the risk of losing some or all of the invested capital.
  3. Risk of fluctuations in the price of the product (market risk): The price of the tRACERs Long can fluctuate during the term of the investment, which can result in gains and losses in respect of the invested capital when selling the product prior to maturity.
  4. Bail-in risk: In case of bankruptcy or risk of bankruptcy of the KBC Bank Group (i.e. KBC Bank NV and its subsidiaries), the tRACERS could be wholly or partially written off or converted into capital instruments (i.e. shares).
  5. Liquidity risk: Listing on Euronext Brussels in no way guarantees that an active market will develop. It is possible that the investor will not be able to sell their tRACERS Long prior to maturity.

More information about the risks can be found in the brochure on pages  7 - 8.