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Investments are best viewed as a medium to long term savings option. You may have seen the news about a recent announcement by KBC Bank Ireland in the media – click here for the announcement.
There is no immediate impact of the announcement to your intended investment today. It is too early to be definitive but should the transactions ultimately result in KBC Group’s withdrawal from the Irish market, your investment could be transferred to another provider or you may be required to redeem at a given day in the future.
If a transfer or redemption were to occur, you will receive the value of the fund as of that date with no exit charges. Please note that the gains in your fund are subject to exit tax at the prevailing rate*. Based on the performance of the fund in future, the value of the fund could be more or less than the amount you initially invested.
Should you choose to open your investment account you will continue to be afforded all of the relevant regulatory protections. We are committed to keeping you updated and will keep you informed of the impacts (if any) on you and your investment.
KBC Bank Ireland plc is a distributor of funds managed by KBC Fund Management Ltd and KBC Asset Management NV.
*Exit tax is deducted at source only for our Irish based SIVEK Medium/Expertase Funds.
KBC Bank Ireland has entered into a Memorandum of Understanding (MoU) with Bank of Ireland, expressing the parties’ intention to explore a route that could potentially lead to a transaction whereby Bank of Ireland commits to acquire substantially all of KBC Bank Ireland’s performing loan assets and liabilities. The transaction remains subject to customary due diligence, further negotiation and agreement of final terms and binding documentation, as well as obtaining all appropriate internal and external regulatory approvals.
KBC Bank Ireland’s remaining non-performing mortgage loan portfolio (NPL), which is not part of the MoU, is currently being analysed whereby KBC Group is reviewing its options to divest this NPL portfolio.
Execution of these two transactions would ultimately result in KBC Group’s withdrawal from the Irish market. Further announcements will be made in due course.