KraneShares MSCI All China Health Care Index ETF · AMEX:KURE
KraneShares MSCI All China Health Care Index ETF — KraneShares Global Carbon Transformation ETF — Investor Presentation (March 2022)
21 slides from KraneShares MSCI All China Health Care Index ETF's investor presentation, Mar 22, 2022
Slide 1: Investing in the Low-Carbon Leaders of the Future
KGHG Investing in the Low-Carbon Leaders of the Future: An Overview of KraneShares Global Carbon Transformation ETF (Ticker: KGHG) info@kraneshares.com
Slide 2: Portfolio Characteristics: KGHG Investment Strategy and Highlights
Portfolio Characteristics Investment Strategy: KGHG is an actively managed ETF that aims to capture the low-carbon leaders of the future. The fund includes companies in traditionally KGHG high emitting industries proactively focused on carbon transformation. Companies in high-impact industries with
Slide 3: Climate Change will Be the Defining Theme of this Decade
Climate Overview New York Times, Aug. 8, 2019 Science, Jul. 23, 2021 The Washington Post, Aug. 14, 2020 Climate Change CBS News, Aug. 11, 2021 will Be the World News, Aug. 8, 2021 Defining Theme Floodlist, Aug. 9, 2021 of this Decade The Guardian, Mar. 15, 2021 As individual awareness grows and peop
Slide 4: Amidst the threat, there is tremendous opportunity
Climate Overview Amidst the threat, there is tremendous opportunity The Status Quo is Unsustainable – Carbon Transformation is Necessary • The way we generate and use energy today is at odds with our need for climate stability • Global energy demand will grow 50% by 20501 and currently 80% of the wo
Slide 5: Three Areas of Scientific Consensus on Climate
Climate Overview Three Areas of Scientific Consensus on Climate Earth’s Climate is Getting Hotter • The ten warmest years since 1880 have all occurred since 20051 • July 2021 was earth’s hottest ever month, with a combined land-ocean surface temperature 1.67° F above the 20th century average2 * • Oc
Slide 6: Policy - More Countries are Getting On Board
Drivers for Decarbonization Policy - More Countries are Getting On Board Governments see decarbonization as having the potential for a triple win. It meets climate policy commitments by driving greenhouse gas (GHG) reduction; it contributes to strategic energy security (both certainty of access and
Slide 7: Policy – The Status Quo is Becoming Less Profitable
Drivers for Decarbonization Policy – The Status Quo is Becoming Less Profitable • Net zero commitments cover one fifth of the world's largest An Illustration of How Carbon Allowances can Reduce Emissions corporations and 68% of global GDP, compared to 16% in 2019.1 As taxes are applied based on carb
Slide 8: Technology – While the Alternative is Becoming Cheaper
Drivers for Decarbonization Technology – While the Alternative is Becoming Cheaper Greater Demand The cost of change is falling and the rate of change is accelerating • As new industries scale, costs fall rapidly. Solar generating costs have fallen 90% in ten years.1 • The pace of technology adoptio
Slide 9: Capital - Money Flows Are Driving Change in Corporate Behavior
Drivers for Decarbonization Capital - Money Flows Are Driving Change in Corporate Behavior Major Asset Owners – Increasingly Active and Exclusionary • The world’s largest insurance and pension funds see both risk and opportunity in climate change and Major Asset Owners have organized into advocacy g
Slide 10: Break-even lines cross and green-tech adoption accelerates
Drivers for Decarbonization As technology costs fall and avoided costs rise, the break-even lines cross and green-tech adoption accelerates Cost rises with Rising Avoided greater regulation, Full cycle cost of Costs rising price of CO2, technology and a rising cost of capital as investor implementat
Slide 11: Which Sectors Are Affected?
Drivers for Decarbonization Share of CO2 emissions per energy and land-use system (2019) Which Sectors Are Affected? Agriculture Buildings 1% • The power and industrial sectors collectively account for 60% of 6% CO2 emissions1 • Sectors with high emissions will face substantial impact on Forestry de
Slide 12: Where will the capital investment be required?
Drivers for Decarbonization Where will the capital investment be required? Critical areas of focus and annual investment needed throughout the 2020s to reach net zero goals Battery Storage $52 B Carbon Capture Low Emission Fuels Utilization & Storage $132 B $90 B Nuclear Generation EV Chargers $90 B
Slide 13: KGHG Investment Thesis
Portfolio Characteristics KGHG Investment Thesis Decarbonization leaders will outgrow the economy, their own industries and their own histories • We believe the carbon transformation opportunity arising from net zero provides multiple investible industries that will both grow faster than historicall
Slide 14: Criteria Sought Among Investee Companies
Portfolio Characteristics Criteria Sought Among Investee Companies Stated Commitment and Demonstrated Action towards Decarbonization Capital Spending Plans Increasingly Emphasize Decarbonization Assets, Skills, Market Position Confer Competitive Advantage in Executing Transition Potential for Margin
Slide 15: What a Winning Transformation Strategy Looks Like
Portfolio Characteristics KGHG Investment Thesis What a Winning Transformation Historical Price Named 2021 Strategy Looks Like 250 “World’s Most Ørsted A/S, formerly DONG Energy (Danish Sustainable Named 2019 200 Energy Oil and Natural Gas), invests heavily in “World’s Most Last Price (USD) Sells of
Slide 16: Portfolio Construction
Portfolio Characteristics Portfolio Construction Diversified*, with concentration built around investment conviction Geography Breakdown Sector Breakdown Market Cap Breakdown • Global equity portfolio • Liquid global thematic strategy – not benchmark-like • The strategy will diversify by style, geog
Slide 17: Security Examples
Portfolio Characteristics Security Examples Returns for New Energy business projected be higher vs RIL New Energy CapEx amongst highest vs other traditional hydrocarbon† global energy companies vs total energy CapEx CROCI, % Green Petrochemicals CapEx share over medium term 60% 57% • India’s biggest
Slide 18: KraneShares Global Carbon Transformation ETF Fund Details
Portfolio Characteristics KraneShares Global Carbon Transformation ETF (Ticker: KGHG) Fund Details Data as of 3/16/2022 Investment Strategy: Primary Exchange NYSE KGHG is an actively managed ETF that aims to capture the low-carbon leaders of the future. KGHG focuses on companies in traditionally hig
Slide 19: About the Fund Advisor
About Us About the Fund Advisor KraneShares is uniquely positioned to add value • $13B under management including $2.3B in climate assets1 • Innovative climate suite, with unique policy insights • China research expertise provides important competitive context on decarbonization The Portfolio Manage
Slide 20: Term/Index Definitions
Term/ Index Definitions: MSCI World (Net Return USD) Index: captures large and mid cap representation across 23 Developed Markets (DM) countries*. With 1,539 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Carbon allowances: Top 3 ca
Slide 21: 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 befo
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