KraneShares MSCI All China Health Care Index ETF · AMEX:KURE
KraneShares MSCI All China Health Care Index ETF — KraneShares Emerging Market Healthcare Index ETF — Investor Presentation (March 2020)
22 slides from KraneShares MSCI All China Health Care Index ETF's investor presentation, Mar 31, 2020
Slide 1: Opportunities From Emerging Healthcare Markets
KMED 3/31/2020 Opportunities From Emerging Healthcare Markets KraneShares Emerging Market Healthcare Index ETF (Ticker: KMED) 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: KMED Investment Strategy
Investment Strategy: KMED KMED seeks to provide investment results that, before fees and expenses, track the performance of the Solactive Emerging Markets Healthcare Index. The index seeks to track the equity market performance of companies engaged in the health care sector in various emerging marke
Slide 4: The populations of emerging market countries are growing and aging
The populations of emerging market countries are growing and aging • The UN predicts that, by 2050, world population will exceed 9.7 billion people1 with emerging market countries accounting for over one third of total population and having over 588 million people aged 65 or more1. • By 2030, China
Slide 5: Rapid urbanization and rising income look to increase consumption in emerging markets
Rapid urbanization and rising income look to increase consumption in emerging markets • In EM countries, the total population living in urban areas has increased by over 337 million people in just 10 years1 • Asian countries like China, Thailand and Malaysia are experiencing particularly rapid urban
Slide 6: As China's population moves to cities and wages increase, healthcare is becoming a greater focus
As China’s population moves to cities and wages increase, healthcare is becoming a greater focus • As average household income and urbanization rates have risen, Chinese citizens have greater access to healthcare knowledge and have a greater ability to pay for medical- related costs. • However, risi
Slide 7: Health care spending is on the rise in other emerging market economies
Health care spending is on the rise in other emerging market economies • Urbanization is placing many in emerging market countries within reach of modern healthcare services, and aging populations are fueling growth in the demand for healthcare services and treatments1. • Moreover, due to urbanizati
Slide 8: As healthcare spending has risen, EM governments are launching new policies
As healthcare spending in emerging markets has risen, EM governments are launching new policies to drive healthcare reform EM vs DM Total Healthcare Expenditure as % of GDP in 20172 • Historically, average EM healthcare spending per capita has been about 5% that of the United States1 18 Emerging Mar
Slide 9: Emerging market healthcare companies are adopting international standards
Emerging market healthcare companies are adopting international standards • In 2016 and 2017, China and South Korea joined the International Council for Pharmaceutical Harmonization (ICH), which was established by regulators from the US, EU, and Japan to facilitate international collaboration in dru
Slide 10: KMED provides exposure to small, mid and large cap equities
The KraneShares Emerging Market Healthcare Index ETF (Ticker: KMED) provides exposure to small, mid and large cap equities from a diverse array of subsectors and countries Subsector Breakdown Market Cap Breakdown Country Breakdown Health Care Leisure South Africa Hungary Mexico Technology Products 1
Slide 11: Country by Country Healthcare Market Subsector Snapshot
Country by Country Healthcare Market Subsector Snapshot KMED country-level breakdown (in order of country holding weight within KMED) Healthcare Market Subsectors 2. South 1. China 3. India 4. Malaysia 5. Brazil 6. Thailand 7. Indonesia 8. Others* Korea Pharmaceuticals Companies engaged in the resea
Slide 12: China
China Healthcare IT Example Pharmaceuticals Holding • Over the past few years, online healthcare platforms have helped vastly increase access to health services. The COVID-19 outbreak quickly introduced many new users to healthcare IT, accelerating the growth of the industry. • Online platform, Ping
Slide 13: China: A snapshot of China's biotech industry
China FIVE YEARS A snapshot of China’s biotech industry Biotechnology 2015 Government funding • The 13th 5-Year Plan (2015-2020) mandated the biotech industry should exceed 4% of China’s GDP by 20202. • Biotech industry highlighted in three of the government’s latest five-year plans. 2016 • Estimate
Slide 14: South Korea
South Korea Biotechnology • The Korean government is pushing to expand its share in the global biotechnology Example Biotechnology Holding market by adding 120,000 new biotech jobs by 20251. • According to the Ministry of Science, the 2018 budget increased its biotechnology funding by 10.5% from its
Slide 15: India
India Pharmaceuticals Example Pharmaceuticals Holding • India’s pharmaceutical industry supplies over 50% of the global demand for vaccines1. Sun Pharmaceutical Industries Ltd. is a pharmaceuticals manufacturer • The pharmaceutical sector was valued at $33 billion in 2017 and is expected and markete
Slide 16: Malaysia and Thailand
Malaysia Thailand Hospital Administration Services Hospital Administration Services • In 2016, total healthcare expenditure reached $13.3 billion, and is expected to more • Thailand’s total healthcare expenditure in 2016 amounted to $25.3 billion in 2016 than double over the next ten years to $30.4
Slide 17: South Africa
South Africa Pharmaceuticals Example Pharmaceuticals Holding • In 2016, the pharmaceutical market was valued at between $3.1 and $3.3 billion. • In that same year, pharmaceutical imports accounted for 85% of the country’s total pharmaceutical trade, despite depreciation of the South African Rand.2 •
Slide 18: Brazil
Brazil Insurance • Brazil has implemented a universal and free public healthcare system, however 22.8%%1 of its total Example Healthcare Administration Services population utilizes private healthcare and employer-subsidized health insurance due to the lack of Holdings funding and quality of service
Slide 19: Top 10 holdings have seen attractive revenue growth
The top 10 holdings in the KraneShares Emerging Market Healthcare Index ETF (Ticker: KMED) have seen attractive revenue growth over the past five years Top 10 Fund Holdings* 1 Year Average Revenue 5 Year Average Company Logo Ticker Fund Weight (As of 3/31/2020) Growth Rate Revenue Growth Rate SHENZH
Slide 20: KraneShares Emerging Market Healthcare Index ETF Fund Details
Fund Details As of 3/31/2020 Top Ten Fund Holdings Primary Exchange NYSE as of 3/31/2020 excluding cash. Ticker % Fund holdings are subject to change. KraneShares Emerging Market Healthcare Cusip 500767819 SHENZHEN MINDRAY BIO-MEDIC-A 300760 CH 6.38 Index ETF (Ticker: KMED) Total Annual Fund Operati
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 befor
Slide 22: Index returns are for illustrative purposes only
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”) shall obtain data from sourc
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