KBC launches three CZK- and HUF-hedged European ETFs

KBC Asset Management has launched three bluesphere° UCITS ETFs: bluesphere° US Equity (BSUE), bluesphere° European Equity (BSEU) and bluesphere° US Technology (BSTE). Each ETF offers share classes hedged to the Czech koruna (CZK), and an expanding number of classes include Hungarian forint (HUF) hedging. The funds are distributed through HANetf and are targeted at investors in the Czech Republic and Hungary.

The ETFs track established indices and use rules-based methodologies to provide transparent exposure to U.S. and European equity markets and to U.S. technology stocks. KBC and HANetf noted the hedged share classes aim to reduce the impact of exchange-rate moves for investors who measure returns in CZK or HUF. HANetf will support distribution across Europe.

KBC Group was formed in 1998 through the merger of Kredietbank, CERA Bank and insurer ABB Insurance. The group serves about 13 million clients in its core markets of Belgium, the Czech Republic, Slovakia, Hungary and Bulgaria, operates roughly 1,090 bank branches, distributes insurance through agents and other channels, and employs around 40,000 people. KBC Asset Management plans to use that client base and distribution network to offer the new ETFs.

KBC described the hedged share classes as a response to local investor demand and said all three ETFs are available in CZK-hedged share classes, with additional HUF-hedged classes being offered. The firm presented the products as straightforward, rules-based funds with clear visibility on portfolio composition and market exposure.

KBC and HANetf highlighted standard ETF risks. They stated fund performance may be affected by changes in economic and market conditions, political developments, government policy shifts, limits on capital transfers, and changes in legal, regulatory or tax frameworks. They also warned that secondary-market trading can be irregular during market stress, leading to wider bid/ask spreads and longer settlement times.

Johan Lema, chief executive of KBC Asset Management, noted that an earlier CZK-hedged global ETF showed strong client interest and that the new funds extend the firm’s locally hedged offerings. Hector McNeil, co-founder and co-CEO of HANetf, welcomed the expansion and pointed to KBC’s scale and distribution reach across its core European markets.