KEYPRIVATE. Next Generation Portfolio Management

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1 KEYPRIVATE Next Generation Portfolio Management

2 Life is for the early birds.

3 KEYPRIVATE, portfolio management the Keytrade Bank way To those who always want to stay one step ahead. Who seize the day even before the world wakes up. To those who value time so much that they want to save some more each day. To those people, Keytrade Bank today proposes KEYPRIVATE : a unique, online solution for asset management. Entrust your assets to our experts, starting from 15,000, and free up some time for the things that really matter to you, while monitoring what happens to your portfolio 24/24. All this at a fraction of the cost of traditional asset management.

4 The basic principles for good Discretionary Portfolio management Optimal allocation A lot of studies have shown that 90% of the return is explained by the balance between the large investment categories (equity, bonds, gold, metals). So not, like many think, by buying individual shares ( stock picking ). The Nobel Prize winning Modern Portfolio Theory is the theoretical reflection of these findings and is therefore also the starting point of the KEYPRIVATE model. KEYPRIVATE determines the optimal asset allocation for your portfolio, based on your objectives, your risk profile and the market context. Cost control By investing in trackers KEYPRIVATE puts together a diversified portfolio without excessive costs. With the far-reaching technology of our platform we can perform the transactions without extra fees. And, as usual, you will not pay custody fees at Keytrade Bank, your only cost is a minor fixed management fee. Result: overall you pay 2 to 3 times less than for traditional asset management (0,75% per year VAT excluded, transaction fees included, taxes not included). Permanent rebalancing Of course, the market is not static. Market movements affect the performance of the trackers, which may bring your portfolio out of balance. That is why we constantly rebalance the portfolios we manage, to make sure your risk profile stays in line with your profile, while keeping the expected return at the best level.

5 Maximum diversification of assets and risks As for every investment formula, diversification is an essential goal for KEYPRIVATE. That is why we do not create portfolios with individual shares, but with trackers. Every individual tracker also consists of dozens or hundreds of underlying values. KEYPRIVATE invests in a unique, smart selection of 12 cost-efficient trackers over 4 different asset classes. This results in an optimal and efficient diversification. Equity (5 trackers) Commodities Bonds (5 trackers) Cash

6 Do the online simulation on keytradebank.be Our online simulator is a unique tool that offers you a glimpse of the possible future performance of your investments. 10 different risk levels VERY DEFENSIVE DEFENSIVE VERY MODERATE MODERATE BALANCED GROWTH DYNAMIC VERY DYNAMIC AGGRESSIVE VERY AGGRESSIVE Estimated value of your assets in the long term The exact composition of your portfolio: geographical areas, tracker type (ETF, ETC),... The return of your portfolio according to 3 market scenarios: favourable, normal, unfavourable

7 Figures that speak for themselves Défensif Équilibré Dynamique Gross return since launch * : 8,39% 15,75% 18,53% * Past performances are not a reliable indicator of future results. The gross return does not include management fees (0.75% per year excl VAT) and possible taxes. The return applies to a period from 04/01/2016 to 01/10/2018 and is based on an initially invested amount on 04/01/2016 for 3 risk profiles. Trackers make the difference Buying a tracker is investing in a basket of stocks, bonds or other securities with a single transaction. Trackers do not require active management. Spreading and cost efficiency are automatically integrated. An index tracker is an investment tool which follows ( tracks ) the value of a reference index. Some trackers follow the large, global equity indexes (ETF = Exchange Traded Funds): S&P 500, CAC40, BEL20, There are also index trackers for commodities (ETC = Exchange Traded Community), like gold or petrol. Such as other financial instruments, there are risks linked to trackers that every investor can consult on

8 v A unique ecosystem for your assets For our asset management formula we selected renowned international partners and financial experts. Together with the Keytrade Bank platform they form an ecosystem which allows optimal growth of your wealth. 1 2 YOUR PROFILE >> >> YOUR RETURN This is the start: after an online simulation and a suitability test you sign your contract and entrust your assets to KEYPRIVATE. The KEYPRIVATE eco system Tested by KEYPRIVATE maximises the return of your assets in function of your profile and the market context. 4 3 Explanation of points 1, 2, 3 and 4 on the following page. THE HIGHEST ACADEMIC STANDARDS We want KEYPRIVATE to always meet the highest standards. That is why the academic council always keeps a critical eye on the model. It is a panel of university professors with thorough knowledge of Modern Portfolio Theory and portfolio management.

9 1 International partners ensure the international diversification of your wealth We work together with Amundi and Blackrock, both leading international equity researchers. KEYPRIVATE has access to their expertise and reports. For commodity trackers we also use the expertise of ETF Securities, pioneer and specialist in this investment instrument. 2 A team of 5 experts fine-tunes your portfolio A panel of financial experts adjusts your portfolio to the current market context. The investment committee monitors the market closely and can perfectly estimate the consequences of market evolutions on trackers. Through their quarterly reports and Geert Van Herck President of the Investment committee Gorik Nelissen Head of Financial Markets Keytrade Bank Loïc L Hermitte Responsible for discretionary managed portfolios at Federal Finance their monthly videos, on our website, we inject their current market knowledge in KEYPRIVATE. This results in an optimal allocation in all circumstances. Léon Kirch Chief Investment Officer European Capital Partners (Luxembourg) Gert De Mesure Independent financial expert 3 Your money always in balance for optimal return 4 We carry out the orders, in all transparency In order to calculate your optimal and most efficient portfolio we With the Keytrade Bank platform you can count on su- use the tried and tested Gambit (a spin-off of the University of per-efficient action: quick, flawless and without excessive Liège) technology, specialised in portfolio costs. And you can always log onto your account to look optimisation and risk management. at the composition and return of your portfolio in real-time.

10 Maximum return in function of your risk profile...that is the essence of the Modern Portfolio Theory. It is a generally accepted model to manage diversified portfolios. In 1990 the founders Harry Markowitz and William Sharpe were given the Nobel Prize in Economics for their model. By means of Modern Portfolio Theory we calculate the optimal mix of selected trackers for each risk profile, in order to compose the most efficient portfolio. When all risk levels are combined with their efficient portfolio, it results into a graph called the efficient frontier. Market movements or tracker performance can make a portfolio deviate from this efficient frontier. In that case the portfolio must be rebalanced. And that is exactly what KEYPRIVATE does, via the algorithms of Gambit.

11 All optimal portfolio combinations put together create the "efficient frontier". These portfolios give the ideal composition to maximise the potential return, in view of your risk profile. 100% equity HIGHER 50% / 50% return Every point represents a possible portfolio composition. The points closest to the efficient frontier have the highest possible return, in view of the risk level. LOWER 100% bonds LOWER Risk Profile standard deviation HIGHER

12 v Beneficiate from KEYPRIVATE in 3 steps Complete the SUITABILITY TEST (max 20 ) A questionnaire probes your financial goals, knowledge, risk profile and financial situation. This allows us to compose a portfolio tailored to your needs. Keep a payslip and tax return form at hand. The entire KEYPRIVATE team is ready to answer all your questions. Discover KEYPRIVATE on KEYPRIVATE is initiated Your money is invested and will be monitored. You have 24/7 access to your KEYPRIVATE account, where you can see the composition and return of your portfolio Max. 5 working days. Already a customer? Log in. Not a customer yet? Open your free account. You are kept informed by a monthly video and a quarterly report. Do the ONLINE SIMULATION Simulate return, for your risk level. Entrust your capital to KEYPRIVATE You sign digitally and our KEYPRIVATE experts will manage your capital. Quit whenever you want.

13 A new service, the same benefits Subscribe to KEYPRIVATE to take advantage of the years of expertise of Keytrade Bank. Because as a leading player in online banking and trading in Belgium, Keytrade Bank developed user-friendly, safe and accessible applications for daily banking, investing and now also asset management. Cost-efficient Costs are deadly for the return on your assets. The use of cost-efficient trackers give room to your return. Transparent price You pay 0.75% per year excl. VAT (transaction fees included, taxes not included) on the amount of your portfolio in discretionary management. No entry fees, no exit fees, no custody fees. 24/24 and 7/7 availability Monitor your portfolio s return always and everywhere, via an intuitive and practical dashboard.

14 Contact us +32 (0) from Monday to Friday, between 9 am and 5 pm. On appointment Head office Keytrade Bank Boulevard du Souverain Brussels Antwerp Amerikalei 241, 2000 Antwerp Ottignies Avenue du Douaire 50, 1340 Ottignies Keyprivate@keytradebank.be Skype ID keytradebank.com

15 October 2018 Keytrade Bank, Belgian branch of Arkéa Direct Bank SA ( France ) Boulevard du Souverain 100, B-1170 Brussels P + 32 (0) F + 32 (0) info@keytradebank.be keytradebank.be Publisher: Keytrade Bank - Vorstlaan 100 Bld du Souverain Brussels - BE Belgian branch of Arkéa Direct Bank SA (France) - Tour Ariane - 5, place de la Pyramide Paris - La Défense RCS nr. Nanterre