KBC Asset Management adds three CZK- and HUF-hedged ETFs

KBC Asset Management has launched three UCITS exchange-traded funds, HANetf announced. The funds are bluesphere° US Equity (BSUE), bluesphere° European Equity (BSEU) and bluesphere° US Technology (BSTE). Each fund is available with Czech koruna (CZK) hedged share classes; a growing number of Hungarian forint (HUF) hedged classes will be offered.

The ETFs provide exposure to US and European equities while offering options to reduce currency risk for investors holding assets in CZK or HUF. The funds are structured as UCITS, allowing distribution across European markets that accept UCITS products.

KBC says the ETFs follow rules-based methodologies that track established indices. The documented selection and weighting rules are intended to give investors clear information on portfolio composition and market exposure.

All three funds launched with CZK-hedged share classes. Additional HUF-hedged classes are being introduced to meet demand from investors in Hungary.

HANetf and KBC described the ETFs as index-tracking products rather than active strategies, designed to provide a baseline exposure for investors seeking long-term equity allocation in US, European and US technology segments.

The managers highlighted risks that may affect returns, including changes in economic and market conditions, political developments, shifts in government policy, restrictions on capital transfers and alterations to legal, regulatory or tax regimes. They also noted that secondary market trading can be uneven during periods of stress, producing wider bid/ask spreads and longer settlement times.

KBC Group was formed in 1998 through the merger of two Belgian banks and an insurer. The group serves about 13 million clients in core markets including Belgium, the Czech Republic, Slovakia, Hungary and Bulgaria, operates roughly 1,090 bank branches and employs around 40,000 people.

Johan Lema, chief executive of KBC Asset Management, noted that the initial CZK-hedged launch showed client interest and supported the decision to expand the ETF lineup. Hector McNeil, HANetf co-founder and co-CEO, commented that KBC’s scale and regional distribution network support the fund launches.

Fund documents disclose the indices tracked, the approach to currency hedging and the risks for potential investors.