KraneShares MSCI China Clean Technology Index ETF · AMEX:KGRN
KraneShares MSCI China Clean Technology Index ETF — KraneShares CCBS China Corporate High Yield Bond USD Index ETF — Investor Presentation (March 2019)
13 slides from KraneShares MSCI China Clean Technology Index ETF's investor presentation, Mar 31, 2019
Slide 1: High Income Opportunity from China's USD Bond Market
KCCB 3/31/2019 High Income Opportunity from China’s USD Bond Market An Overview of the KraneShares CCBS China Corporate High Yield Bond USD Index ETF (Ticker: KCCB) 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. 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: Investment Strategy: KCCB
Investment Strategy: KCCB KCCB seeks to provide investment results that, before fees and expenses, track the price and yield performance of the Solactive USD China Corporate High Yield Bond Index. The Index seeks to track the performance of outstanding high KraneShares CCBS yield debt securities den
Slide 4: CCB Securities Ltd, co-manager of KCCB
CCB Securities Ltd (CCBS), an overseas asset management platform of China Construction Bank (CCB), is the co-manager of KCCB CCB Quick Facts • Headquartered in Beijing with offices worldwide • Second largest bank in the world by assets1 • Established in 1954 • Investment and Retail banking divisions
Slide 5: China has the largest USD denominated bond market in Asia
China has the largest USD denominated bond market in Asia Demand from yield seeking investors created a booming USD denominated bond market for Chinese companies. Strong issuance provides a solid capacity for investors to benefit from this growing credit market. • China accounts for more than half o
Slide 6: China high yield bonds offer higher yields and lower modified durations
China high yield bonds offer comparatively higher yields and lower modified durations. The China high yield bond market has a higher yield and lower modified duration1 compared to other fixed income markets like the US and Europe Global Fixed Income Yield and Mod Duration 10 9 US Generic Govt 10 Yea
Slide 7: A strong economy means a stable credit market
A strong economy means a stable credit market. China’s economic growth has been relatively stable over the past few years years. • China’s property is supported by strict policy controls and solid demand which stands to benefit leading property developers. Moody‘s Investors Service forecasts the def
Slide 8: The China credit bubble is a misconception
The China credit bubble is a misconception. Deleveraging in 2017 created a stable credit market in 2018. China’s corporates, especially SOEs, own abundant deposits, debt minus deposit shows a reasonable leverage level. China Corporate Leverage 180 160 140 120 100 80 60 40 2005 2006 2007 2008 2009 20
Slide 9: Asia USD High Yield bonds have low correlations to the global bond market
Asia USD High Yield bonds have low correlations relative to the global bond market. Asian USD-denominated high yield bonds have a correlation range of 15% to 43% to major global bond indexes. Bloomberg Barclays Bloomberg Barclays Asia Bloomberg Barclays US Bloomberg Barclays Bloomberg Barclays US Bl
Slide 10: KraneShares CCB China Corporate High Yield Bond USD Index ETF (NYSE: KCCB)
Ticker KCCB Top Ten Holdings as of 3/31/2019 % of Fund Index Name Solactive USD China Excluding cash. The Fund’s Holdings Are Subject to Corporate High Yield Change KraneShares CCB China Corporate High Bond BOCOM 5 PERP 5.41 Yield Bond USD Index ETF (NYSE: KCCB) Primary Exchange NYSE CCB 4.65 PERP 5
Slide 11: 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
Slide 12: Important Notes (continued)
Important Notes (continued) Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Although Krane Funds Advisors LLC and its affiliates (“Krane”)
Slide 13: Important Notes
Important Notes Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This material must be preceded or accompanied by a prospectus. Read the prospectus carefully before investing. ETF shares are not redeemable with the issuing fund other than in l