KraneShares MSCI All China Health Care Index ETF · AMEX:KURE
KraneShares MSCI All China Health Care Index ETF — Investor Presentation (March 2019)
19 slides from KraneShares MSCI All China Health Care Index ETF's investor presentation, Mar 31, 2019
Slide 1: China Healthcare: Potential Opportunities From One Of The Fastest Growing Major Global Healthcare Markets
KURE 3/31/2019 China Healthcare: Potential Opportunities From One Of The Fastest Growing Major Global Healthcare Markets1 An Overview of the KraneShares MSCI All China Health Care Index ETF (Ticker: KURE) 1. Major healthcare markets defined as top five global markets by the World Health Organization
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: KURE Investment Strategy and Sector Highlights
Investment Strategy: KURE seeks to measure the performance of MSCI China All Shares Health Care 10/40 Index. The Index is a free float adjusted market capitalization weighted index designed to track the equity market performance of Chinese companies engaged in the health care sector. The KURE securi
Slide 4: China's healthcare sector is growing rapidly
China’s healthcare sector is growing rapidly. • China is one of the fastest growing major healthcare markets in the world with a five-year compound annual growth rate of 11%, compared to just 4% in the United States, and -4% in Japan1. • China is the second largest healthcare market globally with to
Slide 5: China has continued to break historical pharmaceutical sales records
China has continued to break historical pharmaceutical sales records despite having significantly lower healthcare per capita expenditures compared to other major countries. • China’s pharmaceutical sales reached $122.6 billion in 20171. This number is projected to grow to $175 billion by 20221, acc
Slide 6: As China's population moves to cities and wages increase, healthcare is becoming a greater focus
As China’s population moves to cities and wages increase, healthcare is becoming a greater focus • As average household income and urbanization rates have risen, Chinese citizens have greater access to healthcare knowledge and have a greater ability to pay for medical- related costs. • However, risi
Slide 7: China's growing aging population is fueling demand for healthcare services
China’s growing aging population is fueling the demand for increased healthcare services. • China’s aging population is expected to increase the burden of chronic disease by 40% by the year 20301. • By 2053, China will have 487 million senior citizens, making up 35% of the total population2. • The n
Slide 8: The China healthcare ecosystem
The China healthcare ecosystem Patent and Generic Medical Equipment Hospital Administration Pharmaceuticals Production Traditional Biotechnology Healthcare IT Chinese Medicine 8
Slide 9: Patent and Generic Pharmaceuticals
Patent and Generic Pharmaceuticals China’s domestic pharmaceutical market is flourishing due to favorable market conditions and policies. Favorable Policies Joint Venture Partnerships • Several market-friendly policies have been introduced encouraging joint ventures between multinational companies a
Slide 10: Medical Equipment Production
Medical Equipment Production China’s medical device market maintains a double-digit growth rate. • The medical device market has been one of the fastest growing China Medical Device and Pharmaceutical Markets healthcare segments in China, maintaining double-digit growth for over a decade. Medical De
Slide 11: Hospital Administration
Hospital Administration As China’s population becomes more health conscious, the demand for high quality preventative care also increases, providing a catalyst for private hospitals and facilities that offer health examinations, evaluations, and consulting services. Privatization • Rising demand fro
Slide 12: Four major catalysts for China's biotechnology and life science industry
Biotechnology Four major catalysts for China’s biotechnology and life science industry Government funding FOUR YEARS • Biotech industry highlighted in three of the government’s latest five-year plans A snapshot of China’s biotech industry • Estimated $100 billion per year1 already invested in the li
Slide 13: Traditional Chinese Medicine
Traditional Chinese Medicine The Traditional Chinese Medicine (TCM) industry represents a sizable portion of the entire market. • TCM has a rich 2,000 year history encompassing herbal medicine, acupuncture, massage and dietetics. TCM has over 2000 years of tradition • In recent years, TCM has enjoye
Slide 14: Healthcare IT
Healthcare IT Healthcare IT services catch up with China’s growing healthcare demand. • China’s healthcare IT market reached $3.4 billion in 2014. With a compound annual growth rate (CAGR) of 13.8%, the China Internet Datacenter Services expects the market to reach $7.2 billion by 20201. Healthcare
Slide 15: China healthcare sector has outperformed the broader Chinese markets over 5 years
The China healthcare sector in both Mainland (A shares) and Hong Kong (H shares) has outperformed the broader Chinese markets over the past 5 years. China A & H Share Health Care vs MSCI China Index since 2013 (3/31/2013 - 3/31/2019) 30,000 25,000 20,000 Growth of 10,000 units 15,000 10,000 5,000 0
Slide 16: Example Holdings in the KraneShares MSCI All China Health Care Index ETF
Example Holdings in the KraneShares MSCI All China Health Care Index ETF (Ticker: KURE) Example Holding weight Theme Company logo Company Description Holding (as of 3/31/2019) Jiangsu Hengrui develops, manufactures, and markets a variety of medicines and Patent and Generic Jiangsu Hengrui 9.71% medi
Slide 17: KURE portfolio characteristics
KURE portfolio characteristics KURE Sector Breakdown KURE Market Cap Breakdown KURE Breakdown by Listing Location Hong Kong 40.88% Mid Cap Healthcare 29.61% 100% Large Cap 69.67% China 57.61% USA 1.51% Small Cap 0.63% Data from Bloomberg as of 3/31/2019, excluding cash. Due to rounding, the percenta
Slide 18: KraneShares MSCI All China Health Care Index ETF fund details
Fund Details As of 3/31/2019 Top Ten Holdings as of 3/31/2019 The Fund’s Holdings are Subject to Ticker % Primary Exchange NYSE Change. KraneShares MSCI All China Health Care Index ETF Cusip 922908108 JIANGSU HENGRUI MEDICINE C-A 600276 CH 9.71 (Ticker: KURE) Total Annual Fund Operating CSPC PHARMAC
Slide 19: Index Definitions and Important Notes
Index Definitions: MSCI China Index: captures large and mid cap representation across China H shares, B shares, Red chips and P chips. With 143 constituents, the index covers about 84% of this China equity universe. MSCI China A Health Care Index: captures large and mid cap representation across Chi
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