KraneShares MSCI China Clean Technology Index ETF · AMEX:KGRN
KraneShares MSCI China Clean Technology Index ETF — KraneShares E Fund China Commercial Paper ETF — Investor Presentation (March 2020)
18 slides from KraneShares MSCI China Clean Technology Index ETF's investor presentation, Mar 31, 2020
Slide 1: Finding Quality Income: China's Interbank Bond Market
KCNY 3/31/2020 Finding Quality Income An Overview of Opportunities Within China’s Interbank Bond Market info@kraneshares.com 1 1
Slide 2: Introduction to KraneShares
Introduction to KraneShares About KraneShares Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We strive to provid
Slide 3: KraneShares E Fund China Commercial Paper ETF Introduction
Introduction Investment Strategy: KCNY The KraneShares E Fund China Commercial Paper ETF (NYSE: KCNY) seeks to track the CSI Diversified High Grade Commercial Paper Index. The Fund seeks to invest at least 80% of its total assets in a diversified basket of investment- grade1 commercial paper denomin
Slide 4: E Fund Asset Management is the co-advisor to KCNY
Introduction E Fund Asset Management is the co-advisor to the KraneShares E Fund China Commercial Paper ETF (ticker: KCNY) E Fund Quick Facts • Located: Headquartered in Guangzhou with offices in Beijing, Shanghai and Hong Kong • Established in 2001, was among the 1st Chinese asset management compan
Slide 5: China's Interbank Bond Market Ownership
Ownership China’s Interbank Bond Market is the second largest in the world, yet it has little foreign ownership. Top 10 Countries in the Bloomberg Barclays Global Agg Top Three Bond Markets Treasuries Index 35 40.8 40 30 25 % Weight 20 USD Trillions 15 10 13.9 12.8 5 0 0 US China Japan Data from the
Slide 6: Index Inclusion: Chinese bonds in Bloomberg Barclays Global Aggregate
Index Inclusion On April 1, 2019, Bloomberg Barclays began including RMB-denominated bonds issued by the Chinese government and policy banks into their Global Aggregate Index, which is tracked by $2.5 trillion in assets, 1as well as their Global Treasury and Emerging Markets Local Currency Governmen
Slide 7: Index Inclusion: China's weight in Global Aggregate Index
Index Inclusion When Chinese bonds are fully added into the Global Aggregate Index, China’s weight will increase to about 6% of the Index, and the Chinese RMB will become the fourth-largest currency component1. Full inclusion is likely to bring at least $150 billion of fund inflows 2 into China’s $1
Slide 8: Index Inclusion: EM Local Currency Government Bond Index
Index Inclusion Illustrating the fast pace of bond inclusion, in just one year, China went from having no representation in the Bloomberg Barclays Emerging Market Local Currency Government Bond Index to being the index’s top issuer. In 2019, China replaced South Korea as the top issuer in the index
Slide 9: Currency: Historical evolution of CNY
Currency Historical evolution of CNY dynamics & reasons for a stable outlook • The RMB steadily depreciated against the dollar for much of the 1980s and 1990s, as China gained its competitive export edge. USD/CNY Spot Rate 2 • In 1997, a peg to the dollar was initiated at 8.3 CNY for every dollar, a
Slide 10: China maintains over $3 trillion in Foreign Exchange Reserves
Currency China maintains over $3 trillion in Foreign Exchange Reserves. China Monthly Foreign Exchange Reserves 4,500 4,000 3,500 3,000 USD (Billions) 2,500 2,000 1,500 1,000 500 0 Data from Bloomberg as of 3/31/2020. 10
Slide 11: PBoC's new CFETS Basket approach has created stability
Currency PBoC’s new CFETS Basket approach has created stability. China Foreign Exchange Trade System (CFETS) was created by People’s Bank of China (PBoC) to manage the RMB risk. In December of 2015, CFETS adopted a 13-currency basket for managing the RMB. The basket was expanded to 24 currencies at
Slide 12: CNY had lower volatility than many emerging market currencies
Currency Chinese Onshore Renminbi (CNY) had lower volatility than many emerging market currencies over the past year. Emerging Market Currencies by 2019 Volatility 18 16 USD Exchange Rate Standard Deviation (%) 14 12 10 8 6 4 2 0 Turkish Lira South Brazilian Chilean Peso Colombian Russian Czech Crow
Slide 13: Investors are paid a premium for China's government bonds
Global Yield Investors are paid a premium for investing in China’s government bonds. • China’s government bonds offer higher yields than many far riskier global assets such as Southern European government debt. • China’s GDP growth rate of 6.2% in 2018 was higher than those of Spain (2.6%), Portugal
Slide 14: Yields on China's government debt higher than US treasuries
Global Yield Yields on China’s government debt are higher than yields on US treasuries Sovereign Curves 3.5 3 2.5 Yield To Maturity (%) 2 1.5 1 0.5 0 3M 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 12Y 15Y 20Y 25Y 30Y China USA Data from Bloomberg as of 3/31/2020. A yield curve is a line that plots a set point
Slide 15: Key Fund Information
Key Fund Information KraneShares E Fund China Commercial Paper ETF (NYSE: KCNY) Ticker KCNY Investment Strategy Primary Exchange NYSE The KraneShares E Fund China Commercial Paper ETF (NYSE: KCNY) seeks to track the CSI Diversified Index Name CSI Diversified High Grade High Grade Commercial Paper In
Slide 16: KCNY Monthly Distributions
KraneShares E Fund China Commercial Paper ETF (ticker: KCNY) Monthly Distributions 2019 Distributions 2020 Distributions Ex-Date Record Date Payable Date Amount Ex-Date Record Date Payable Date Amount 12/27/2019 12/30/2019 12/31/2019 $0.07 3/27/2020 3/30/2020 3/31/2020 $0.06 11/26/2019 11/27/2019 11
Slide 17: Index definitions: RMB Basket Index and Bloomberg Dollar Index
RMB Basket Index (CEFTS): This index tracks the performance of CNY (RMB, Chinese Yuan) against the 13 currencies accepted by the China Foreign Exchange Trade System (CEFTS) for its currency basket. The currencies were selected based on international trade-weights with adjustments of re-export trade
Slide 18: Important Notes
Important Notes Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kraneshares.com. Read the prospectus carefully befor
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