The KBC Alternative Energy Strategy

A unique strategy which provides access to the leading global

companies in the renewable energy arena.

Investment Advice
with Foresight

Soaring energy demand, endless oil price hikes, environmental concerns about greenhouse
gas emissions and worries about security of supply have led to an increased focus on new
energy sources. The prospects for renewable energy sources, including wind, solar and
bio-based energy appear bright, and potentially profitable, over the long-term.

The KBCAM Alternative Energy Strategy offers an exciting long-term investment opportunity
to capitalise on the growth potential in these sectors. The strategy was established in 2000
and offers investors the opportunity to access an actively managed portfolio of global shares
of companies that are active across a range of renewable energy sectors.
 The KBC Alternative Energy Strategy

INVESTMENT STRATEGY
The KBC Alternative Energy portfolio invests in an internationally diversified selection of
shares of companies active in the alternative energy sector. The portfolio also follows the
sustainability theme and each of the companies in the universe of the portfolio is screened
to ensure they score positively on sustainability issues. This strategy is designed to generate
higher investment returns than a basket of global equities over a five year period. It is
suitable for long-term equity investors who wish to access the alternative energy theme and
for inclusion in a globally diversified portfolio.

ALTERNATIVE ENERGY - Structure

The structured investment process of the KBC Alternative Energy Strategy is designed to
generate a portfolio of the most attractive companies which are active in developing technologies
that reduce our reliance on traditional fossil fuels. The portfolio consists of a range of large,
mid-cap and small-cap companies based primarily in North America, Europe and Asia Pacific.
The strategy is well diversified on a regional and sectoral basis and typically encompasses
between 60 to 70 securities at any time. The strategy invests worldwide in shares in companies
which derive a significant proportion of their revenues from the following activities:

• Wind energy
• Solar Energy
• Bio-fuels (the only renewable alternative to traditional
transportation fuels)

• Hydro/Geothermal/Ocean Power

• Fuel Cells

FOUR GOOD REASONS TO INVEST

• Higher oil prices and growing worldwide demands for energy are straining traditional
energy resources globally. At the same time, alternative energy has captured public
attention as a potential solution to the pressing issue of climate change. Another
factor playing an increasingly important role is security of supply – the need to secure
a reliable, affordable and stable source of energy. Thus the prospects for alternative
energy sources, including wind, solar and bio-based energy appear bright, and
potentially profitable, for the foreseeable future.

• The KBC Alternative Energy Strategy invests in a well-diversified range of companies

globally that provide technology, services and products in the area of renewable
energy.

• Historically, the strategy has a relatively low correlation to the MSCI World Index,
offering diversification benefits to a global portfolio.

• Investors can access the expertise of KBC Asset Management’s specialist Eco fund
managers and analysts who have delivered a strong, long-term performance track
record in managing alternative energy assets.

Innovation Diversification Specialisation

 Alternative Energy
Investment Thesis
The rapid ascendance of alternative energy is
directly linked to five key drivers: increasing
global demand, scarcity of oil and natural gas,
investment in technology, climate change
and a changing regulatory landscape.

Rising Global Energy Demand

The world’s population continues to grow,
doubling from 3 billion to 6 billion in the
40-year period from 1959 to 1999, and
forecast to reach 9 billion by 2042. Demand
for energy is increasing exponentially,
particularly as emerging economies work to
raise the standard of living for their people.
The International Energy Agency predicts that
global primary energy demand will increase by
50% between now and 2030, with over 70% of the increased demand coming from developed countries and China alone accounting for
30% of the increase.

Scarcity of Accessible Oil

Easy-to-reach supplies of oil are beginning to run out in many parts of the world, and more costly and potentially environmentally destructive
methods for extracting oil will be necessary to meet the growing demand. The rising cost of oil makes new, more expensive methods of oil
production more viable, but it also creates opportunities for competing energy sources like wind, solar and bio-fuels.

Growing Investment in New Energy Technologies

Of the total venture capital investments in the United States in 2006, 9.4% was related to energy technologies, up from just 0.8% in 1999.
Increased investment in new technology will help to drive down the costs of competing energy options, such as solar, wind, bio-fuels and
hydrogen sources.

Climate Change
The growing scientific consensus about the potentially catastrophic impacts of climate change has captured significant public attention
over the past two years, particularly as Vice President Gore and the Intergovernmental Panel on Climate Change were jointly awarded the
Nobel Peace Prize in October 2007. Scientists now agree that global warming is connected to the concentration of man-made gases –
primarily CO2 – in the atmosphere. CO2 is a direct result of the burning of fossil fuels. A variety of new regulations have been either recently
introduced or are in the works to combat climate change. In addition, we are seeing additional subsidies to promote alternative energy
sources. These factors will help to make alternative energy much more competitive over the coming years.

Changing Regulatory Landscape

Governments across the globe are introducing legislative measures to provide incentives to encourage the production and use of renewable
energy sources.

• Kyoto Protocol – the EU & 36 other countries around the world agreed to reduce Green House Gas emissions by 5.2% from 1990
levels through a cap and trade system.
• The EU aims to derive 20% of its total power needs from renewable sources by 2020.
• The US Department of Energy has a goal of obtaining 5% of US electricity from wind by 2020.

With the evolution of these five key drivers, we see the dawning of a new age for alternative energy, one that may hold
significant promise for equity investors looking to diversify their investments and gain access to a new high-growth area.
WHO SHOULD INVEST IN THE KBC WATER STRATEGY?
In just the past five years, alternative energy has emerged on the investment landscape as a distinct asset class
that demands attention. Historically, the KBC Alternative Energy Strategy has had a relatively low correlation to
the MSCI World Index, making it an ideal complement to a global equity portfolio. KBC Asset Management’s
investment philosophy is to provide access to the most exciting investment themes with the strongest growth
prospects and to blend these together with core strategies to provide enhanced returns in a risk-controlled
framework. We believe all investment portfolios should have some exposure to alternative investment themes
such as alternative energy.

FUND Details investment FUND under belgian law (sicav) and ucits 111 under irish REGULATION

launch date February 2000

Reference Currency Euro

Benchmark MSCI World Total Return Net

Share Categories Distribution and Roll-up

Management Fee 1.5% p.a.

About KBC Asset Management

We believe we have the largest, most diversified range of investment solutions of any domestic provider for
domestic and international pension funds, charities and corporates. As part of the wider KBC Asset Management
Group we have been managing assets in Dublin since 1980.

We are renowned internationally for launching and managing a diversified range of investment products and,
in particular, for innovation in product design, development and delivery of diversified offerings. Our business
is structured so each team of investment professionals operates with investment autonomy, utilising a robust
investment process and incentivised by out performance of respective benchmarks and growth in assets of that
product – in essence creating a dynamic “boutique type” environment within a large investment house.

The KBC Eco Strategies are managed by our dedicated Eco team based in Dublin who are one of the first
investment units globally to invest in Eco themes (Alternative energy, Water, Climate Change, Agribusiness).

www.kbcam.com

Contact: To find out more about our Eco Strategies contact

Ciaran Henry on Tel: +353 1 438 4453
or email ciaran.henry@kbcam.com
Important Information for UK Investors

KBC Eco Fund of which KBC Eco Fund Water, KBC Eco Fund Alternative Energy, KBC Eco Fund Climate Change are sub-funds; KBCAM Institutional Fund Plc of which KBC Water
and KBC Alternative Energy and KBC Eco Agri Fund are sub-funds are unregulated collective investment schemes for the purposes of the United Kingdom Financial Services
and Markets Act 2000 (“the Act”) and, as such, their promotion by KBC Asset Management Ltd in the United Kingdom is restricted by section 238 of the Act. Accordingly,
this presentation is to be communicated only to and is directed only at existing participants in the scheme and persons falling within the definition of “eligible counterparty” or
“professional” in the glossary to the rules of the Financial Services Authority. Units in the scheme are available only to such persons. Persons of any other description should not
rely on or act upon the contents of this presentation.

If you are not an existing participant in the scheme and are in any doubt as to whether you fall within the definition of “eligible counterparty” or “professional” you must not rely on
or act upon the contents of this presentation unless you have taken professional advice which has confirmed that you fall within one of these definitions.

Cautionary Note

The value of investments and the income from them may go down as well as up and you may not get back your original investment. Past performance is not necessarily a guide to
future performance. Projected / simulated performance has been included for illustrative purposes and is not necessarily a guide to future performance. The views expressed are
those of KBC Asset Management Ltd and should not be construed as investment advice.

KBC Asset Management Ltd is authorised by the Irish Financial Regulator and regulated by the Financial Services Authority for the conduct of UK business.

Alt. E. UK May 08