KraneShares MSCI China Clean Technology Index ETF · AMEX:KGRN
KraneShares MSCI China Clean Technology Index ETF — KraneShares MSCI One Belt One Road ETF — Investor Presentation (March 2018)
19 slides from KraneShares MSCI China Clean Technology Index ETF's investor presentation, Mar 31, 2018
Slide 1: The One Belt One Road Initiative: A New Paradigm in Global Investing
OBOR 3/31/2018 The One Belt One Road Initiative: A New Paradigm in Global Investing An Overview of the KraneShares MSCI One Belt One Road ETF (ticker: OBOR) 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: OBOR ETF Investment Strategy and Initiative Facts
Investment Strategy: The KraneShares MSCI One Belt One Road ETF (ticker: OBOR) seeks to provide investment results that track the price and yield OBOR performance of the MSCI Global China Infrastructure Exposure Index. The Index aims to identify potential beneficiaries of the One Belt One Road initi
Slide 4: The OBOR initiative is a primary focus of President Xi Jinping
The OBOR initiative is a primary focus of President Xi Jinping of China. OBOR is an extensive infrastructure project modernizing China’s ancient Silk Road trading routes established during the Han Dynasty. OBOR is poised to reshape the 21st century economy. Silk Road Economic Belt and Maritime Silk
Slide 5: China is the world's second largest economy
China has experienced rapid growth over the past 30 years and is now the world’s second largest economy1. Much of this growth historically came from its industrial sector and production of commodities, in particular: coal, cement, and crude steel. World Bank China GDP Current Price1 China Production
Slide 6: China must find new channels for growth as fixed investment levels off
As China’s economy has matured, growth in fixed investment has leveled. China must now find new channels for growth. • Over the past decade, China has devoted nearly 50% of its GDP to investment, resulting in tremendous industrial capacity which can be leveraged through the OBOR initiative1 • China
Slide 7: Considerable demand for infrastructure investment among OBOR countries
There is considerable demand for infrastructure and development investment among the countries participating in the OBOR initiative The countries participating in the OBOR initiative need significant investment for development and infrastructure upgrades • The OBOR initiative seeks to create trade a
Slide 8: China is steadily increasing the value of its overseas projects
China is steadily increasing the value of its overseas projects • Chinese firms have experience conducting business along the OBOR routes and countries participating in the OBOR Initiative are the largest recipients of Chinese investment. • We believe the OBOR initiative may accelerate the rate of g
Slide 9: OBOR has support from the highest levels of Chinese government
Within China, the OBOR initiative has gained support from the highest levels of government and is now an official national strategy • Since it was unveiled in 2013, OBOR was included in the Third Plenum policy program and has become an official national strategy • In May 2017, the OBOR Forum was hel
Slide 10: OBOR has generated strong interest from global investors
The OBOR initiative has generated strong interest from global investors and has achieved large scale participation from countries within Emerging Markets • The OBOR initiative aims to reach: OBOR Countries as % of world as of 2016 70% 65% o 71 countries (including China) along the land and maritime
Slide 11: Key objective of the OBOR plan is better connectivity and linkage
The key objective of the OBOR plan is to promote better connectivity, deepen linkage to improve mutual understanding and foster long-term stability in the region • Two major policy banks in China; China Development Bank (CDB) & Export-Import Bank of China (EIBC), issued over $200 Billion in loans to
Slide 12: OBOR ETF vs MSCI Emerging Markets Index
The OBOR ETF offers distinct portfolio characteristics from the MSCI Emerging Markets Index. We believe the countries and sectors within the OBOR ETF may potentially outperform over the long term due to the positive catalyst generated by the One Belt One Road Initiative. OBOR countries breakdown vs
Slide 13: The Index Matters
Index Overview The Index Matters • MSCI is a global leader in international indexing and serves as a trusted index provider for the largest global investment managers. • MSCI is well qualified to establish the investable universe of companies participating in the OBOR initiative. 1 As of June 30, 20
Slide 14: OBOR Initiative Filtering Process for Index Constituent Selection
In order to make the OBOR Initiative theme investable KraneShares worked closely with MSCI to develop the MSCI Global China Infrastructure Exposure Index. OBOR Initiative Filtering Process for Index Constituent Selection Stock Universe Select stocks from MSCI ACWI + Frontier Markets IMI + MSCI China
Slide 15: ETF tracks companies across sectors and countries aligned with OBOR
The KraneShares MSCI One Belt One Road Index ETF tracks a variety of companies across the sectors and countries aligned with the OBOR initiative Sector Sector Company weight in Company country of (by weight in weight in Top holding in sector Company Logo Company description index ETF domicile OBOR E
Slide 16: KraneShares MSCI One Belt One Road ETF Fund Details
Fund Details As of 3/31/2018 Top Ten Holdings (ex Cash) as of 3/31/2018 Ticker % Primary Exchange NYSE The Fund’s Holdings are Subject to KraneShares MSCI Change. One Belt One Road ETF Cusip 500767405 OVERSEA-CHINESE BANKING CORP OCBC SP 7.16% The KraneShares MSCI One Belt One Road ETF (ticker: OBOR
Slide 17: Definitions
Definitions Fixed Asset Investment: investment in physical assets such as machinery, land, buildings, installations, vehicles, or technology. Fixed Capital Formation: Fixed capital formation refers to the process of a firm increasing its stock of fixed capital. Fixed capital are assets used in the p
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
Slide 19: Index returns disclosures
Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Although Krane Funds Advisors LLC and its affiliates (“Krane”) shall obtain data from sourc
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