KraneShares MSCI China Clean Technology Index ETF · AMEX:KGRN
KraneShares MSCI China Clean Technology Index ETF — KraneShares — Investor Presentation (October 2017)
20 slides from KraneShares MSCI China Clean Technology Index ETF's investor presentation, Oct 12, 2017
Slide 1: The Emerging Market Consumer Internet & E-Commerce Opportunity
KEMQ 10/12/2017 The Emerging Market Consumer Internet & E-Commerce Opportunity An Overview of the KraneShares Emerging Markets Consumer Technology ETF (Ticker: KEMQ) info@kraneshares.com 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: KEMQ Investment Strategy
Investment Strategy: KEMQ KEMQ seeks to track the Solactive Emerging Markets Consumer Technology Index. The Index selects companies from 26 eligible countries within emerging markets whose primary business or businesses are internet retail, internet software/services, KraneShares purchase, payment p
Slide 4: China retail sales and e-commerce performance vs broad China markets
Value of Monthly China Retail Sales Index (Jan 2010 – Aug 2017) 3500 Index Value (CNY Billions) 3000 2500 2000 Through our experience investing in the Chinese 1500 markets we identified three core themes: 1000 • Internet adoption is expanding rapidly within China • Domestic consumption and retail sa
Slide 5: Proliferation of e-commerce in China
Through our trips to China we saw the proliferation of E-Commerce firsthand. Over 30 billion packages were delivered in China in 2016 a 53% increase year over year1. JD.com warehouse employees prepare same-day delivery Unlike competitor Alibaba, JD.com owns its own logistics network and has a fleet
Slide 6: Money and the internet have become inseparable
We saw that money and the internet have become virtually inseparable. Apps like Tencent’s WeChat and Alibaba’s Alipay allow users to do everything from buy a coffee, hail a cab, to make investments in wealth management products, all from a smart phone. WeChat users can invest in mutual funds through
Slide 7: Tencent and early investor Naspers
We learned about Tencent and one of the company’s early investors, the South African internet conglomerate, Naspers. Tencent has grown to be one of the largest companies in the world, and the largest company in emerging markets, with a market cap of $425 billion1. As of 9/30/2017 Naspers owned 33% o
Slide 8: Naspers: global internet and entertainment group
Naspers is a global internet and entertainment group that has grown into one of the largest technology investors in the world. The company’s investments span the globe and are organized into six business areas: Classifieds, Payments, B2C E-Commerce, Ventures, Video Entertainment, and Media¹. Naspers
Slide 9: Internet penetration across emerging markets
As Nasper’s success underscores: the rise of consumer technology goes beyond China to broader emerging markets as more and more of the developing world gets internet access for the first time. Internet penetration rates vary across emerging markets creating distinct Within major emerging market coun
Slide 10: Smart phones as first point of internet access
For the majority of the developing world, smart phones provide the first point of internet access, leapfrogging traditional computers. Mobile-cellular telephone subscriptions Percent of population that own a smart phone 2000 2016 Growth multiple Country Total % India 3,577,095 1,127,809,000 315x Ind
Slide 11: Emerging markets represent a huge consumer market opportunity
World Bank 2016 GDP, by PPP Ranking Economy (million of international dollars) CHN 1 China 21,417,150 USA 2 United States 18,569,100 Emerging markets represent a huge consumer IND 3 India 8,702,900 JPN 4 Japan 5,266,444 market opportunity DEU 5 Germany 4,028,362 • In order to fairly compare the cons
Slide 12: Middle class consumption could reach 52% of global consumption by 2030
According to a seminal study from the The Organization for Economic Co-operation and Development (OECD) middle class consumption could reach 52% of total global consumption by the year 2030, up from 14% in 2009. Middle Class Consumption – Top 10 Countries (billions of 2005 PPP$ and global share) 200
Slide 13: Emerging markets consumer technology ecosystem of services
Emerging markets consumer technology consists of an ecosystem of services Cybersecurity Video Streaming Social Media Cloud Computing Artificial Electronic intelligence Online Advertising Payments 13
Slide 14: Developing the Solactive Emerging Markets Consumer Technology Index
In order to deliver a precise representation of the emerging markets consumer technology opportunity we worked with Solactive to develop the Solactive Emerging Markets Consumer Technology Index Filtering Process for Index Constituent Selection 26 eligible countries: Argentina, Brazil, Chile, Colombi
Slide 15: Index sector and country breakdown vs traditional emerging markets
Our index filtering process results in a very different sector and country breakdown than traditional emerging markets Solactive Emerging Markets Consumer Technology Index Sector Breakdown Solactive Emerging Markets Consumer Technology Index vs MSCI Emerging Markets Index Sector Breakdown 70.0 60.0
Slide 16: Index constituents across key emerging market countries
The Solactive Emerging Markets Consumer Technology Index tracks a variety of companies throughout key emerging market countries Top countries and Top constituent in country Weight Company Logo Company description weight within Index ZTE sees an opportunity for growth in the construction of mobile an
Slide 17: KraneShares Emerging Markets Consumer Technology ETF (NYSE: KEMQ)
Fund Details As of 10/12/2017 Top Ten Holdings as of 10/12/2017 % of The Fund’s Holdings Are Subject to Change. Fund Primary Exchange NYSE – – KraneShares Emerging Markets Cusip 500767702 – – Consumer Technology ETF (NYSE: KEMQ) Total Annual Fund Operating Gross: Net: 0.79%* – – Expense 0.80% Invest
Slide 18: Index and Term Definitions
Index Definitions: CSI Overseas China Internet Index: Represents the Chinese internet companies listed in overseas markets (New York and Hong Kong), in order to measure the performance of the Chinese internet companies listed outside mainland China. MSCI China Index: The MSCI China Index captures la
Slide 19: 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
Slide 20: Data disclaimer and forward-looking statements
Although Krane Funds Advisors LLC and its affiliates (“Krane”) shall obtain data from sources that Krane considers reliable, all data contained herein is provided “as is” and Krane makes no representation or warranty of any kind, either express or implied, with respect to such data, the timeliness t