Branch 23: Smart Fund Plan Private

Automatic reinvestment

After a sharp market decline, many investors hesitate, sometimes for too long, before returning to the financial markets. Thanks to automatic reinvestment, a gradual reinvestment begins on the first working day of the following month after the total transfer of your base fund to the destination fund, and spreads over 6 months.

This monthly reinvestment only concerns the units of the destination fund acquired at the time of the total transfer triggered by the loss limitation mechanism.

Dynamic adjustment

Dynamic adjustment means that each time the unit value of the base fund increases by 1% compared to the reference value, a new reference value is automatically set. This new reference value is equal to the old reference value increased by 1%.

Consequently, the loss limitation level will be adjusted by applying the chosen loss limitation percentage (5, 10, 15, or 20%) to the new reference value.

In the context of this adjustment, no unit transfer is applied.

Reduce the risk of bad timing

What is the ideal time to enter the financial markets? If you want to invest a significant amount, it may be wise to spread your purchases over time rather than investing everything at once. You thus reduce the risk of bad timing. The "Drip Feed" option allows you to avoid the timing issue by organising a gradual monthly investment of your capital in the selected base fund. Thanks to this free option, you can choose between investment periods of 6, 12, 18, or 24 months.

Compose your Smart Fund Plan Private

You select the base fund(s) that best combine(s) your return ambitions, the investment strategy to achieve them, and your risk tolerance. They are characterised by a broad diversification of their assets and active, professional management.

Risk control can also be reinforced by the two protection mechanisms of your Smart Fund Plan Private.

The destination fund to which transfers will be made to secure your investment has been selected for its very defensive nature. It has a profile adapted to protect the profits made by your base fund or to wait for better days.

For all the proposed investment funds, you will find useful information in the key information document, the management regulations, and the "Flash Invest" dedicated to them.

Keep control of your investment insurance

You can at any time transfer all or part of the units of a fund to another fund in your contract (including the destination fund). In the case of a partial transfer, it must be at least €1,500, and a reserve of at least €1,500 must remain in each fund.

Transfers between funds within the contract are entirely free.

Flexibility and liquidity of this investment insurance

Flexibility of the Smart Fund Plan Private

You can at any time transfer part of your base fund to the destination fund and vice versa, provided that:

• the transfer is of a minimum amount of €1,500
• at least €1,500 remains in each fund.

Liquidity of the Smart Fund Plan Private

Partial redemption is possible if:

• the redemption value is at least €1,500
• a minimum reserve of €1,500 remains in each fund

You have the option to make periodic withdrawals to generate additional income, provided that:

• the reserve is at least €25,000 per contract
• the withdrawals do not exceed 4% of the reserve calculated at the time of the redemption request.

The contract is terminated if you request the entire reserve.

What happens if you die prematurely?

When signing your contract, you can designate a beneficiary of the capital of your Smart Fund Plan Private after your death. In the context of death coverage, the death capital corresponds to the total number of units held in each fund of the contract, multiplied by the unit value on the day of liquidation. Consult the general conditions for more information.

Taxation of this Branch 23 solution

Insurance tax: 2% on premiums paid.

The Smart Fund Plan Private allows you to spread the payment of the tax due on the premium paid upon conclusion of your contract over 4 years, starting from the 1st anniversary of the contract. Any additional premiums paid subsequently do not benefit from this opportunity.

You do not pay stock exchange tax, 30% professional withholding tax or final tax. In the event of death, inheritance taxes may be levied.

This tax regime applies to private investors in Belgium and may be subject to future changes. Other categories of investors are invited to inform themselves of the tax regime applicable to them.

Fees related to this Branch 23 offer

• entry fees: 2.25% to be added to your net investment
• fees specifically related to the funds associated with each Smart Fund Plan Private, automatically deducted from the unit values
• variable recurring costs from one fund to another, mentioned in the management regulations of each fund
• variable recurring transaction costs between 0 and 0.20% per year, depending on the chosen fund

To know the fees specific to each fund and their impact on the potential return, consult the management regulations and the key information document dedicated to each fund. Access the list of funds proposed in the context of the Smart Fund Plan Private and their legal documentation.

• surrender fee: the surrender fee is 1% of the theoretical surrender value for 2 years and 11 months. From 2 years, 11 months, and 1 day after the contract takes effect, no surrender fee is due. There are no exit fees in the event of the insured's death.
• fees related to protection mechanisms: 0.20% of the base fund reserve, per year and per active mechanism. As long as the protection mechanisms are active, these fees are calculated each month and automatically deducted by reducing the number of units of the base fund. The options related to the loss limitation mechanism are free.
• transfer fees between investment funds: no transfer fees between investment funds. From the 40th day following the contract's entry into force, the policyholder can switch, in whole or in part, from one fund to another fund. A partial transfer is possible from €1,500, provided that a reserve of at least €1,500 remains in each fund; no fees for automatic transfers occurring in the context of the protection mechanisms.

Main risks related to the Smart Fund Plan Private, Branch 23 life insurance

Capital risk: there is no capital protection or guaranteed return. The value of the investment funds fluctuates with the financial markets, like your shares. If you sell your shares in the fund, you may get less than the price at which you bought them.

Risks related to protection mechanisms: although the protection mechanisms aim to limit the negative impact of market volatility on your investment, it is possible that their triggering, at certain times in the product's life cycle, contributes to a return lower than the return of the same base fund without protection mechanism. Moreover, the investor must be aware that, for technical reasons, the triggering of protection mechanisms is not immediate after crossing a threshold upwards or downwards. This delay can lead, for example, to a greater loss than that targeted by the loss limitation mechanism. Similarly, once triggered, the execution of a protection mechanism cannot be cancelled, even if the market recovers quickly after triggering.

Insurer insolvency: the assets of the fund linked to the life insurance contract subscribed by the policyholder are subject to separate management of a special estate managed separately within the insurer's assets. In the event of the insurer's insolvency, this estate is reserved primarily for the execution of commitments to policyholders or beneficiaries.

Regarding a Branch 23 life insurance product linked to investment funds, the following risks should not be overlooked:

• unit fluctuation risk (market risk): the unit value depends on the evolution of the underlying assets and market volatility. The financial risk is entirely and at all times borne by the policyholder. Consequently, upon any withdrawal or upon contract liquidation, the unit value may be higher or lower than its value at the time of premium payment. Therefore, the policyholder must be aware that they may not recover (entirely) the invested amount.
• liquidity risk: in exceptional circumstances, the liquidation of fund units could be delayed or suspended.
• risks related to fund management: the funds are exposed to different risks that vary depending on the investment objective and policy of these funds and their underlying funds. To achieve this investment objective, the managers of each fund may make investments in different asset classes and styles, in varying proportions, depending on market conditions and the fund's investment policy. However, since the return is not guaranteed, there is always a risk that the investments made will not produce the expected results, despite the managers' expertise.

Learn more

Before making any investment decision, the investor is required to take note of the general conditions describing the characteristics and fees of the Smart Fund Plan Private, as well as the key information document and management regulations dedicated to each of the funds proposed in this context.

• General Terms and Conditions
• Flash Invest
• Smart Fund Plan Private (English version)
• Smart Fund Plan Private (German version)

The investor can at any time:

• consult the status of their Smart Fund Plan Private contract in their Easy Banking Web or with their private banker
• find the unit value of each fund proposed in the context of the Smart Fund Plan Private on the AG website or in the specialised press

Legal information

The Smart Fund Plan Private is an indefinite-term life insurance product, without capital protection or guaranteed return, from AG SA, distributed by BNP Paribas Fortis, and subject to Belgian law.

AG SA, Bd É. Jacqmain 53, 1000 Brussels – RPM Brussels – VAT BE 0404.494.849 – www.aginsurance.be – Belgian insurance company approved under code 0079, under the control of the National Bank of Belgium, Bd de Berlaimont 14, 1000 Brussels.

BNP Paribas Fortis SA, Montagne du Parc 3, 1000 Brussels – RPM Brussels – VAT BE 0403.199.702 – is subject, as a Belgian credit institution, to the prudential control of the European Central Bank and the National Bank of Belgium. BNP Paribas Fortis SA is registered under the aforementioned company number with the FSMA, Rue du Congrès 12-14, 1000 Brussels, and acts as a tied insurance agent, remunerated by commissions, for AG SA. BNP Paribas Fortis SA holds a stake of more than 10% in AG SA.

For any questions, you can, in the first instance, contact your advisor or consult Article 21 of the general banking conditions.

Complaints can be filed with BNP Paribas Fortis SA, Complaint Management Service, Montagne du Parc 3, 1000 Brussels, or with AG SA, Complaint Management Service, bd É. Jacqmain 53, 1000 Brussels, by phone at 02 664 02 00 or by email at customercomplaints@aginsurance.be.

If the proposed solution does not satisfy you, you can submit your complaint to the Insurance Ombudsman by email at info@ombudsman-insurance.be, by mail to Square de Meeûs 35, 1000 Brussels, or on their website www.ombudsman-insurance.be.