KraneShares MSCI China Clean Technology Index ETF · AMEX:KGRN
KraneShares MSCI China Clean Technology Index ETF — KraneShares — Investor Presentation (July 2021)
21 slides from KraneShares MSCI China Clean Technology Index ETF's investor presentation, Jul 31, 2021
Slide 1: Opportunities In The Asia High Yield Bond Market
KHYB 7/31/2021 Opportunities In The Asia High Yield Bond Market Overview of the KraneShares Asia Pacific High Yield Bond Index ETF (ticker: KHYB) 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: KHYB Introduction
Introduction Investment Strategy: KHYB KHYB is an active ETF managed by sub-advisor Nikko Asset Management Americas, Inc. (“Nikko”). KHYB is benchmarked to the JP Morgan Asia Credit Index (JACI) Non-Investment Grade Corporate Index. The fund provides exposure to USD-denominated high yield debt secur
Slide 4: Active Management: People, Philosophy, Process
Active Management We believe the best actively managed investments are driven by the “three P’s”: People, Philosophy, & Process Philosophy People Process Nikko’s investment process combines top-down Wai Hoong Leong is the head of Asia credit and a macro research with bottom-up fundamental The key te
Slide 5: Why Active?
Active Management Why Active? We believe that active management is appropriate for investing in Asia high yield bonds given the market’s size, complexity, and tendency to undergo rapid changes owing to the low level of development of some of its country constituents. An active manager may offer: Nik
Slide 6: Asia Bond Market Size
Market Size The Asia Bond Market has witnessed steady growth over the last decade. The JP Morgan Asia Credit Index grew from a market capitalization of $250 billion in 2010 to over $1.2 trillion in 2020, an increase of 368%. Data from JP Morgan as of 3/31/2021. Investment Grade is represented by the
Slide 7: Asia ex-Japan share of Global Aggregate Index
Market Size Despite Asia ex-Japan representing nearly one third of global GDP,1 the region makes up only 10% of the Bloomberg Barclays Global Aggregate Index.2 Global bond indexes don’t accurately reflect the rise and size of Asian economies. We have observed this trend in China equities. However, w
Slide 8: Interest Coverage Ratio
Quality Asian high yield issuers boast attractive interest coverage ratios. In 2020, the average interest coverage ratio for Asian high yield issuers was 6.4x. Generally speaking, an interest coverage ratio of 2x is considered acceptable and an interest coverage ratio of 3x is considered good. Inter
Slide 9: Gross New Issuance - Asia USD High Yield
Quality Issuance has been strong over the past six years, averaging $236 billion annually, meaning companies are confident in their futures and financing future growth. Q1 2021 saw strong issuance as well, with local investors dominating new issuance allocation Gross New Issuance - Asia USD High Yie
Slide 10: Real Yields on 10-Year Government Bonds
Risk/Return Many emerging Asian countries’ real yields appear more attractive compared to the US and Japan. Despite the overarching effects of the global pandemic, real yields among emerging Asian countries have endured, whereas those in the US and Japan have declined. Real Yields on 10-Year Governm
Slide 11: Asia Spread Difference vs. Developed Market Credit
Risk/Return Both high yield and investment grade spreads in Asia are currently attractive compared to spreads in the US and Europe. Asia – Spread Difference vs. Developed Market Credit Basis Points Basis Points IG = investment grade HY = high yield Data from JP Morgan as of 4/23/2021. Asia Credit IG
Slide 12: High Yield Effective Duration
Risk/Return Over the past ten years, Asia Ex-Japan high yield bonds have offered an average yield of 7.05% and currently offer an effective duration of only 3 years. Bond investors in Asia favor low-duration, resulting in a lower average effective duration for Asia ex-Japan high yield bonds. A lower
Slide 13: Asia High-Yield Default Rates
Risk/Return Asia High-Yield corporate bonds have a relatively low default rate compared to other global high yield markets The default rate of Asia high-yield corporate bonds has been lower than that of high yield bonds in other emerging markets regions in six of the past nine years, and was lower t
Slide 14: Asia high yield bond market characteristics
Characteristics Asia high yield bond market characteristics Asia High Yield offers relatively high yield with good credit quality that includes non-rated bonds from high-quality issuers in Asia. J.P. Morgan Asia Credit Index (JACI) Non-Investment Grade Index Market Size (USD) 293 billion Weighted Av
Slide 15: KHYB Country and Sector Breakdown
Characteristics Asia high yield bond market characteristics KHYB is mostly comprised of issuers in China, Hong Kong, and India and by the real estate and financial sectors. KHYB Country Breakdown KHYB Sector Breakdown Singapore 2.35% Thailand Utility Macau 2.35% 2.38% 2.35% Philippines 4.87% Agency
Slide 16: KraneShares Asia Pacific High Yield Bond ETF Fund Details
KraneShares Asia Pacific HighYield Bond ETF* Fund Details Data as of 7/31/2021 Top 10 Holdings as of 08/12/2021. % Holdings are subject to change. Primary Exchange NYSE Investment Strategy: CUSIP 500767843 KHYB is an active ETF managed by sub-advisor Nikko Asset NANYAN 5 PERP 6.41 Management America
Slide 17: Conclusion
Conclusion • The Asia Bond Market has witnessed steady growth over the last decade. The JP Morgan Asia Credit Index grew from a market capitalization of $250 billion in 2010 to over $1.2 trillion in 2020, an increase of 368%.1 • Despite Asia ex-Japan representing nearly one third of global GDP, the
Slide 18: Term Definitions
Term Definitions Yield To Maturity: The total anticipated return on a bond if the bond is held until it matures. Weighted Average Duration: A calculation of the weighted average of the durations of fixed income instruments held in a portfolio. Effective Duration: Effective duration is a duration cal
Slide 19: Index Definitions
Index Definitions JP Morgan Asia Credit Index Non-Investment Grade: The J.P. Morgan Asia Credit Index Core (JACI Core) consists of liquid US-dollar denominated debt instruments issued out of Asia ex- Japan. The JACI Core is based on the composition and established methodology of the J.P. Morgan Asia
Slide 20: 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. Risk Disclosures Investing involves risk, including possible loss o
Slide 21: Important Notes
Important Notes Content provided is for informational purposes only and should not be construed as investment advice. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material i