KraneShares MSCI China Clean Technology Index ETF · AMEX:KGRN
KraneShares MSCI China Clean Technology Index ETF — KraneShares — Investor Presentation (June 2019)
17 slides from KraneShares MSCI China Clean Technology Index ETF's investor presentation, Jun 30, 2019
Slide 1: MSCI China A-Share Inclusion: A Long Term Catalyst For The Mainland Chinese Equity Market
KBA 6/30/2019 MSCI China A-Share Inclusion: A Long Term Catalyst For The Mainland Chinese Equity Market Overview of the KraneShares Bosera MSCI China A Share ETF (ticker: KBA) info@kraneshares.com 1
Slide 2: Introduction to KraneShares
Introduction 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 str
Slide 3: KBA Investment Strategy and MSCI Inclusion Overview
Introduction Investment Strategy: KBA KBA is benchmarked to the MSCI China A Index which captures large and mid-cap representation across China securities listed on the Shanghai and Shenzhen exchanges (A-shares). Over the coming years, MSCI will complete the incremental inclusion of China A-Shares i
Slide 4: The Evolution of China's Capital Markets and KraneShares
Introduction The Evolution of China’s Capital Markets and KraneShares China’s currency, Oct 2016 the RMB, designated a reserve currency by the International Monetary Fund MSCI announces March 2019 KraneShares Bosera MSCI Shanghai Hong Kong CICC (China HKEX RQFII is established MSCI puts China 2011 J
Slide 5: The China A-Share market is too big to ignore
Why China? The China A-Share market is too big to ignore Even though China is the world’s second largest economy and stock market, China A-Shares are still underrepresented in global capital markets. Top 5 Country Weights in MSCI All Country World Top 5 Country Weights in the MSCI All Country Index
Slide 6: Emerging Market Evolution
Why China? Emerging Market Evolution • China’s weighting in the MSCI ACWI Index has grown since 2000 but is a small percentage overall. • We believe China will occupy a larger portion of both the MSCI ACWI Index and investors’ portfolios in general as its markets continue to open up. Historical Deve
Slide 7: The Index Matters
Index Overview 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 6/30/2019. 2 Based on latest P&I AUM data and MSCI clients as of March 2018, retrie
Slide 8: MSCI's current definition of China represents only a small portion of total market
Index Overview MSCI’s current Global Standard definition of China only represents a small portion of China’s total market The MSCI China Index was historically limited to Chinese companies listed on the Hong Kong Stock Exchange. Recently, MSCI expanded this definition to include US-listed Chinese co
Slide 9: MSCI's larger than expected China A-Share inclusion announcement
Inclusion Overview On February 28, 2019, MSCI made a larger than expected China A-Share inclusion announcement. MSCI will increase the inclusion factor of China A-Shares in their Global Standard Indexes from 5% to 20% in 2019. Currently, $1.8 trillion track the MSCI EM Index. Up to $300b are expecte
Slide 10: MSCI China A Index advantages over the CSI 300 Index
Inclusion Overview We believe that the MSCI China A Index has distinct advantages over the CSI 300 Index. • The CSI 300 Index, originally built for domestic Chinese investors, consists of the 300 largest China A-Share stocks ranked by market capitalization. • In comparison, the MSCI China A Index cu
Slide 11: MSCI China A Index stocks are the largest and most liquid
A-Share Characteristics China Mainland Market Capitalization and 30 day Average Trading Volume Decile Breakdown as of 6/30/2019 The MSCI China A Index stocks are the largest and most liquid stocks in the Average Market Cap 30 Day Average Daily Volume A-Share market. 91% • There are currently 3,843 A
Slide 12: Mainland China A-Share equities exhibit low correlation to other global markets
A-Share Characteristics Mainland China A-Share equities exhibit low correlation to other global markets As Emerging Markets (EM) have become more correlated with Developed Markets over the years, the diversification benefits of EM investing have largely diminished. • Frontier Markets, countries whos
Slide 13: Current valuations in Mainland Chinese equity market below historic average
A-Share Characteristics Price/Earnings Ratio of KraneShares Bosera MSCI China A Share ETF (since index start date 6/30/2014 - 6/30/2019) Current Valuations in the 27 Mainland Chinese equity market are below their historic average 24 KBA is currently close to its long run Price- Earnings (P/E)1 avera
Slide 14: KraneShares Bosera MSCI China A Share ETF (KBA) Key Fund Information
Top Ten Holdings as of 6/30/2019 (Excluding cash) % The Fund’s Holdings Are Subject to Change. KWEICHOW MOUTAI CO LTD-A 5.00 KraneShares Bosera MSCI China CHINA MERCHANTS BANK-A 3.00 A Share ETF (ticker: KBA) Key Fund Information WULIANGYE YIBIN CO LTD-A 1.87 Investment Strategy: Ticker KBA INDUSTRI
Slide 15: Conclusion: Potential Full Inclusion of China A-Shares
Potential Full Inclusion of China A-Shares Conclusion: Within the MSCI Emerging Markets Index • On June 1, 2018, MSCI commenced the multi-year process of including China A-Shares into their Global Standard Indexes. China • This rebalance has triggered what may be one of the Others 26.3 29.6 largest
Slide 16: Index Definitions
Index Definitions: MSCI China Index: captures large and mid cap representation across China H shares, B shares, Red chips and P chips. 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, th
Slide 17: 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