KraneShares Global Carbon Strategy ETF · AMEX:KRBN
KraneShares Global Carbon Strategy ETF — KFA Dynamic Fixed Income ETF — Investor Presentation (March 2020)
11 slides from KraneShares Global Carbon Strategy ETF's investor presentation, Mar 31, 2020
Slide 1: Capturing Risk-Managed Exposure to High-Yield
KDFI 3/31/2020 Capturing Risk-Managed Exposure to High-Yield An Overview of the KFA Dynamic Fixed Income ETF (Ticker: KDFI) info@kfafunds.com 1
Slide 2: Introduction to KFA Funds
Introduction to KFA Funds About KFA Funds Krane Platform for Innovative Research Founded in 2012, Krane Funds Advisors, LLC is the & Investment Strategies investment manager for KFA Funds and KraneShares ETFs. We believe that investors should have cost-effective and transparent tools for attaining e
Slide 3: Investment Strategy
Investment Strategy KDFI KDFI is benchmarked to the FTSE US High-Yield/Treasury Rotation Index, which takes a tactical approach to investing in High- Yield Credit and US Treasuries. The index is designed to provide a benchmark for investors looking to capture risk-managed KFA Dynamic Fixed exposure
Slide 4: What is a credit spread?
What is a credit spread? High-Yield Bond Breakdown • A credit spread is the difference in yield between a risk-free 6% bond and a bond with credit risk, all else equal. The spread measures the extra yield with which an investor is compensated for owning the risk asset instead of the risk- 5% free as
Slide 5: Why are credit spreads important?
Why are credit spreads important? • Spreads tend to lead the economic and market cycles. Historically, we have seen spreads widen before recessions. • A credit spread widens when the market thinks a given stream of cash flows is riskier, meaning the chance of default is higher. Defaults occur when a
Slide 6: How does a dynamic fixed income rotation strategy work?
Rotated index Treasuries Treasuries US Avg. return Quarter above or below 1-5y 7-10y High Yield across indexes avg. return? How does a dynamic fixed income rotation strategy work? Q1 2015 0.86% 2.53% 2.40% 1.93% Above • Using the FTSE Treasuries 1-5y Index, the FTSE Treasuries 7-10y Index and the Q2
Slide 7: The case for High-Yield
The case for High-Yield The case for B- to BB+ rated bonds • Diversification: High-Yield bonds have been effective diversifiers • Lower default rates: In both the short and long term, there for stock and bond portfolios because they helped to reduce have been significant differences in the default r
Slide 8: Conclusion and Dynamic Fixed Income Process Map
Conclusion • Over the long-run, we believe credit spreads are a reliable indicator for helping investors allocate to fixed income markets. • KDFI’s target benchmark has historically offered equity like returns, with fixed income like drawdown. • The risk management and tactical features of KDFI coul
Slide 9: KFA Dynamic Fixed Income ETF
KFA Dynamic Fixed Income ETF Top Ten Holdings as of 3/31/2020. Excluding cash. % of Fund The Fund’s Holdings Are Subject to Change. Investment Strategy: Key Fund Information KDFI is benchmarked to the FTSE US High-Yield/Treasury BGG 6 ⅞ 12/15/20 2.85 Rotation Index, which takes a tactical approach t
Slide 10: Index Definitions
Index Definitions FTSE US High-Yield/Treasury Rotation Index (Inception date 1/1/19) is designed to provide a benchmark for investors looking to capture risk-managed exposure to High- Yield Credit and US Treasuries. The FTSE US High-Yield/Treasury Rotation Index rotates between the following three u
Slide 11: 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.kfafunds.com. Read the prospectus carefully before i
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