KraneShares MSCI China Clean Technology Index ETF · AMEX:KGRN
KraneShares MSCI China Clean Technology Index ETF — KraneShares MSCI All China Index ETF — Investor Presentation (December 2019)
18 slides from KraneShares MSCI China Clean Technology Index ETF's investor presentation, Dec 31, 2019
Slide 1: Diversification Opportunities From Capturing China as an Asset Class
KALL 12/31/2019 Diversification Opportunities From Capturing China as an Asset Class An Overview of the KraneShares MSCI All China Index ETF (Ticker: KALL) info@kraneshares.com Diversification may not protect against market risk 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: KALL Investment Strategy
Investment Strategy: KALL KALL seeks to provide investment results that, before fees and expenses, track the price performance of the MSCI China All Shares Index. The index seeks to track the equity market performance of companies based in China and listed KraneShares MSCI All in Hong Kong, the Unit
Slide 4: Defining an Asset Class – The MAP Framework
Defining an Asset Class – The “MAP” Framework Market Size Availability Portfolio Impact • Asset classes need to be sizable, since most • A large investment category is not sufficient, • Even if the market size is large and allocators prefer strategic allocations that are since not every market is ac
Slide 5: Market Size
Market Size The size of China’s equity market is large enough to be considered its own asset class. China has the world’s second largest economy and stock market. 2019 Full MARKET Adjusted MARKET CAPITALIZATION* CAPITALIZATION ($bb) Top 5 Country Weights in the MSCI All Equity Asset Class (Percentag
Slide 6: Market Size: China vs Japan GDP and Growth
Market Size China’s equity market is large enough to be considered its own asset class and has a better track record of growth in recent years than other comparable economies. • China’s full equity market capitalization is over $8 trillion1, while Japan’s is $6 trillion2, nonetheless Japan is still
Slide 7: Availability
Availability Inclusion efforts spanning the past 19 years have made China’s equity market available to outside investors. Share Type Weight in Description Overall China • In 2002, the Chinese government launched the Qualified Foreign Equity Market Institutional Investor (QFII) Quota Program, which a
Slide 8: Availability: Emerging Market Evolution
Availability Emerging Market Evolution • China’s weighting in the MSCI All Country World Index (ACWI) has grown since 2000. • Until May of 2018, the definition of China below did not include A-shares and was limited to offshore listings in Hong Kong and New York. Historical Developed and Emerging Ma
Slide 9: Portfolio Impact: Ranked Annual Performance
Portfolio Impact The unique characteristics of China’s equity market performance demonstrate its capacity to have a distinct portfolio impact and provide diversification benefits. • Over the past 19 years, China was the best performer in 5 years and the worst performer in 5. • By contrast, the U.S.
Slide 10: Portfolio Impact: Low Correlations
Portfolio Impact China’s historical pattern of returns exhibits low correlations to other regions. • Average correlations between China’s equity market and other major equity markets, including other emerging markets, have remained low over the past 19 years, maintaining correlation coefficients gen
Slide 11: Portfolio Impact: Return and Risk Benefits
Portfolio Impact There are distinct benefits of treating China as its own asset class from a return and risk standpoint. • China’s equity market is more volatile than Emerging Markets broadly, but has provided superior annualized returns over the past 19 years. • We solved for a China weighting in a
Slide 12: Portfolio Impact: More Efficient Portfolios
Portfolio Impact By treating China as its own asset class, we believe that more efficient portfolios can be developed. Strategic allocation to China provides portfolios with less risk and comparable returns for every combination of developed and emerging markets exposure. Blended Developed/Emerging
Slide 13: The Index Matters
The Index Matters. MSCI is a trusted index provider for the largest global investment managers 1 As of June 30, 2018, as reported on September 30, 2018 by eVestment, Morningstar and Bloomberg, retrieved 12/31/2019. 2 Based on latest P&I AUM data and MSCI clients as of March 2018, retrieved 12/31/201
Slide 14: KALL Holdings Are Diverse in Sector and Listing Location
The holdings in the KraneShares MSCI All China Index ETF (ticker: KALL) are diverse in sector and listing location and are mostly large cap companies. Sector Breakdown Market Cap Breakdown Breakdown by Listing Location Energy Utilities 2.45% Small 2.90% Cap Materials 3.32% 0.17% Financials Health Ca
Slide 15: KraneShares MSCI All China Index ETF Key Fund Information
Key Fund Information Top Ten Fund Holdings Ticker KALL Excluding cash. As of 12/31/2019 % The fund’s holdings are subject to change. KraneShares MSCI All China Index Cusip 500767801 ALIBABA GROUP HOLDING-SP ADR 10.18 ETF (NYSE: KALL) Index Name MSCI China All Shares Index TENCENT HOLDINGS LTD 9.08 I
Slide 16: Definitions
Definitions: MSCI All China Investable Market Index (IMI): captures large, mid and small cap representation across all China securities that are listed in China and Hong Kong, the US and in Singapore. The index includes: A-Shares, H shares, B shares, Red chips and P chips as well as China securities
Slide 17: Return, Risk & Correlation Index Definitions
RETURN, RISK & INDEX INDEX DEFINITION CORRELATION MSCI WORLD INDEX MSCI World Index: The MSCI World Index captures large and mid cap representation across 23 Developed Markets (DM) Developed Markets countries. With 1,644 constituents, the index covers approximately 85% of the free float-adjusted mar
Slide 18: Important Notes
China’s Equity (Stock) Market: For the purposes of this presentation, this refers to the superset of investments including the Mainland, Hong Kong, and overseas listed securities found in the MSCI China All Shares Index. Note that others may use a different definition and, as such, the data provided
KraneShares MSCI All China Index ETF — Investor Presentation (December 2019) on 6ix