KraneShares CSI China Internet ETF · AMEX:KWEB
KraneShares CSI China Internet ETF — Investor Presentation (December 2016)
14 slides from KraneShares CSI China Internet ETF's investor presentation, Dec 31, 2016
Slide 1: The China Consumer Ecommerce Opportunity
KWEB 12/31/2016 The China Consumer Ecommerce Opportunity An Overview of the KraneShares CSI China Internet ETF (Ticker: KWEB) 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. The firm is focused on providing investors with strategies to capture China’s importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent
Slide 3: KWEB Investment Strategy
Investment Strategy: KWEB KWEB seeks to measure the performance of the investable universe of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors. KraneShares CSI KWEB features: China Internet ETF • Access to Chinese internet co
Slide 4: The China Internet Evolution
The China Internet Evolution • In 2014 China’s E-Commerce market size surpassed the U.S. for the first time. • As of 12/31/2016, only 52.2% of China’s population had internet access compared to 88.5% in the U.S. • There is potential for substantial continued growth in the Chinese internet sector. Ch
Slide 5: A Tale of Two Chinas
A Tale of Two Chinas In 2013, the services sector surpassed the industrial sector as the largest contributor to China’s GDP for the first time. While traditional manufacturing is slowing the service sector Purchasing Managers’ Index (PMI) indicates healthy growth in domestic consumption. China GDP B
Slide 6: Retail sales have expanded steadily in China
Retail sales have expanded steadily in China Value of Monthly China Retail Sales Index (12/31/2009 - 12/31/2016) 3500 • Total Chinese retail sales reached 3000 $4.8 trillion in 2016, an increase of 4.4% year Index Value (CNY Billions) over year 2500 • Chinese retail websites sold $749 billion 2000 w
Slide 7: Revenue growth of China internet companies vs U.S. equivalents
The 3 year average revenue growth rate for China internet companies is higher than that of many U.S. internet companies Top 10 KWEB holdings vs. their U.S. equivalents The Fund’s holdings are subject to change. Top 10 KWEB Holdings KWEB Weight China Internet Companies Primary Business Comparable U.S
Slide 8: Apps like WeChat integrate an ecosystem of services
Apps like Tencent’s WeChat integrate an ecosystem of services including: messaging, social media, mobile payments, wealth management, & taxi hailing. In 2016, the US taxi hailing service Uber sold its Chinese business to local competitor Didi (logo below). Unlike Uber, which relies on a WeChat users
Slide 9: E-Commerce also benefits Chinese logistics and delivery companies
The proliferation of E-Commerce in China also benefits Chinese logistics and delivery companies Over 30 billion packages were delivered in China in 2016 a 53% increase year over year1. Monday Morning Beijing: Delivery workers send WeChat messages to office Unlike competitor Alibaba, JD.com owns its
Slide 10: KraneShares CSI China Internet ETF (KWEB) fund information and top holdings
Top Ten Holdings as of 12/30/2016 % of Fund The Fund’s Holdings Are Subject to Change. KraneShares CSI China Internet ETF (Nasdaq: KWEB) TENCENT HOLDINGS LTD 10.91 Investment Strategy: Key Fund Information ALIBABA GROUP HOLDING-SP 8.94 KWEB (the Fund) tracks the CSI Overseas China Internet Index BAI
Slide 11: Historical Return / Volatility of KWEB & Its Top Holdings
KWEB’s investment strategy provides a basket approach to China Internet sector which is aimed at potentially reducing volatility compared to individually held China Internet stocks. Historical Return / Volatility of KWEB & Its Top Holdings Since KWEB Inception (7/31/2013) & Over the Past Two Years S
Slide 12: KWEB Performance compared to other indexes
KWEB Performance KWEB’s performance compared to the U.S., Emerging Markets, & Other China Indexes Since KWEB Inception (7/31/2013) as of 12/31/2016* Preceding 12 months as of 12/31/2016* 70% 40% 60% 30% 50% 42.72% 42.61% 20% 40% 11.95% 11.28% 30% 10% 2.52% 1.15% 17.06% 0.43% 20% 13.94% 13.61% 0% 10%
Slide 13: Important Notes
Important Notes The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any securities, or to participate in a trading strategy, to or from any person in any jurisdiction. Any such offer or s
Slide 14: Important Notes (continued)
Important Notes (continued) The S&P 500 Index: is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. The MSCI Emerging Markets Index: captures large and mid cap representation across 23 Emerging Markets (EM) cou
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